Tag: Europe

The agency set up to help the taxpayer get better value for money from the remaining nationalized businesses should have its remit extended and its powers strengthened.

But a potential conflict of interest in its responsibilities for the Royal Mail and the Post Office network – one of the more difficult issues facing the government – should be removed, the Commons’ public accounts committee recommended yesterday.

The Shareholder Executive, set up in 2003, advises on or manages the government’s shareholding in 27 of the bigger and more sensitive businesses that taxpayers still own or have a stake in – such as BNFL, air traffic control, the Met Office, Channel 4, British Waterways and the Royal Mint.

It has done a good job, the cross-party group of MPs said yesterday, helping stem losses and increase profits in businesses that turn over about GBP 21bn.

A separate board is being created to oversee the executive, which should help with the independence issue, the committee said.

But departments with other businesses that have a turnover of more than GBP 4 bn are not required to use the executive’s services – and in at least one case appear to have struck poor deals as a result.

Postal workers will stage two 48-hour strikes on Oct 5-6 and Oct 8-9 in the next stage of their dispute with Royal Mail over job cuts and pay, the Communication Workers Union has announced.

The workers will also start a rolling program of strikes from Oct 15 and continuing weekly until the dispute is resolved, the union said.

CWU deputy general secretary Dave Ward said the strikes were a proportionate response to Royal Mail’s actions.

“The workforce has had enough of Royal Mail messing them around,” he said. “We’re not going to tolerate an employer that ignores its workforce, ignores the union and ignores its customers.” Earlier this month the union rejected the latest package put forward by Royal Mail, which consisted of a 6.7 pct increase on basic pay over two years, because of a disagreement over working hours. The pay offer comprised the 2.5 pct increase originally proposed for this year, plus a further 0.5 pct from money accrued in “share of savings schemes” and an additional 800 stg if targets are met.

Royal Mail condemned the strike action, saying it is clear that the CWU leadership does not begin to understand the challenges facing Royal Mail and the very serious consequences for the business if we do not push ahead and modernize.