German post and logistics group Deutsche Post has taken part in talks about the privatisation of the Austrian post office but political uncertainty in Austria means a deal is not imminent.
OeIAG, the Austrian agency in charge of privatising state holdings, confirmed there had been talks with Deutsche Post AG (DPWGn.DE) as well as with other postal services.
Read MoreThe changeover to paying state benefits direct into bank accounts from next April could result in chaos because not enough has been done to train postmasters or educate benefit claimants, MPs were warned yesterday.
Post Office executives told the Commons Trade and Industry Select Committee that there was a muddle over which government department should take the lead and that preparations for the changeover were behind schedule.
The phasing out of giro books and the move to pay benefits through automatic credit transfer direct into bank accounts threatens to rob the Royal Mail of pounds 400m worth of business.
Read MoreAllan Leighton warned yesterday that he would walk out of the Royal Mail if the regulator continued to “interfere unreasonably” with his plans for restructuring the loss-making business. He also told a trade and industry select committee he would seek an immediate – albeit high risk – referral to the competition commission if Postcomm reacted negatively to a new plan for raising basic postage prices by 1p.
Read MorePlans to help to save the Post Office with the introduction of what had been known as the Universal Bank account have been scaled back, to the fury of sub-postmasters.
They told MPs yesterday that savers were now being discouraged from signing up to Post Office bank accounts, designed to provide basic banking services to people on low incomes.
A senior MP challenged Royal Mail’s repeated attacks on Postcomm yesterday by comparing the company’s rhetoric to that used by British Gas during the gas market’s liberalisation in the mid-1990s.
Martin O’Neill, chairman of the Commons trade and industry committee, asked Allan Leighton, Royal Mail chairman, whether this was not the “same self-serving defence of inefficiencies” used by any regulated company afraid of competition.
The challenge came as Mr Leighton stepped up pressure on the regulator by warning that its price control proposals could damage Royal Mail’s renewal plans.
Read MoreThe ministry of communications has rejected the proposal made by the Expenditure Reforms Commission to corporatise the postal department and decentralise tariff fixing powers for postal services. The commission had suggested that it could be included in the Indian Post Office (Amendment) Bill, 2002, which was proposed to replace the Indian Post Office Act, 1898.
Ministry sources said the proposal to corporatise the postal department would not be feasible since postal services were heavily subsidised by the government. “Postal services require Budgetary support. Therefore, corporatisation does not make sense,” Ministry sources said.
Read MoreThe Austrian government has no mandate to privatise its state postal monopoly, the Oesterreichische Post, despite media reports Deutsche Post AG has been in talks to take a 75 pct stake, the Vienna daily Der Standard reported, citing a board member of Austria’s state holdings company.
“There has been no decision by the ministerial council and thus the government has no mandate to privatise the Post,” Peter Michaelis told the newspaper.
Read MoreTough trading in UK hits Salvesen profits
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