MPs condemn Royal Mail’s lack of vision over post offices
MPs condemned Royal Mail for lacking imagination and entrepreneurial flair in the way in which it manages its loss-making post office network.
The Trade and Industry Select Committee criticised the Government for not taking more responsibility for looking after the network rather than leaving it to Royal Mail.
It said that the postal group had “failed to show sufficient imagination or entrepreneurial flair in developing services so far, or properly to understand the realities of managing a network of often very small businesses”.
The criticism comes as 2,500 more post offices are about to close because the network is unprofitable. The programme of closures was agreed by the Department of Trade and Industry ahead of a GBP 3.9 billion rescue package for the postal group.
Although the all-party group of MPs said that new management at Royal Mail’s post office division “seems to be awakening from its lethargy”, they added: “We think that the Government, as sole shareholder and representative of the taxpayer, has a responsibility to ensure that Royal Mail Group as a whole gives proper attention to increasing the competitiveness of the network rather than just managing its decline.”
The committee said that there could be more closures “sooner rather than later” unless the Government gave proper attention to maintaining the network after its restructuring.
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