EWS hits back over claims it 'fleeced' UK Royal Mail
UK freight train operator EWS has denied allegations that it ‘fleeced’ the Royal Mail in its long-running letter distribution contract.
The suggestion is raised in a letter from an influential Westminster MP, Lawrie Quinn.
The letter is an attempt to ‘kick-start’ a public debate into the Royal Mail’s decision to axe its entire rail service from EWS, up to 49 trains a night, by next spring.
In a six-point letter to both Philip Mengel, chief executive of EWS, and Allan Leighton, chairman of the Post Office, the MP is clearly playing devil’s advocate.
Mr Quinn, joint chairman of the all-party Parliamentary Rail Group, states: ‘How do you respond to the charge being lodged against EWS privately, including in some trade union circles, that the rigid approach taken by EWS in those discussions has not fully recognised the difficult position the UK’s postal services are in.
‘In fact, that ‘EWS have fleeced the Royal Mail’ throughout the lifetime of the contract. What are you views on this?’
An EWS spokesperson said: ‘Over the past 18 months, EWS has demonstrated flexibility in both train plans and pricing for new services.
‘We have made 37 different proposals in an effort to keep mail on rail, ranging from eight trains a day to 20 trains a day to as many as 94 trains per day at prices significantly below those of the current contract.’
The EWS response continued: ‘The current contract was entered into freely by Royal Mail. It has resulted in EWS investing over GBP50m ($83m) in new equipment and delivering excellent reliability and service to Royal Mail.
‘While it is not our job to subsidise a government-owned monopoly, EWS has voluntarily reduced prices during the period of discussions, including a reduction in the price of all rail services.’
The letter from Mr Quinn goes to the heart of Labour government transport policy, intended to effect an 80% rise in rail freight tonne-kms by 2010. He asks: ‘Is the relationship between the two companies damaged to the extent that future relationships will be impractical?’
A Royal Mail spokesperson was unable to respond at the time of going to press.
