Postcomm publishes its annual report
Postcomm, the postal services regulator, today (14 July 2005) published its annual report. The report covers the year to 31 March 2005.
Read MoreTag: Royal Mail
British govt to rule out Royal Mail privatisation
The government is set to rule out the privatisation of Royal Mail when it announces the terms of reference for a review of the postal business, the Sunday Telegraph reported. ‘He will make it clear that we are not privatising,’ a colleague of trade and industry secretary Alan Johnson reportedly told the paper. Royal Mail’s board continues to hope for permission for the transfer of 20 pct of the business into the hands of its employees – and possibly up to 49 pct, the paper added.
Read MoreOpposition mounts to UK Royal Mail ownership proposals
The Royal Mail is facing growing political opposition to its proposals to transfer its ownership from the state to its employees, only days before a government-commissioned review that will determine the postal operator’s future ownership. A parliamentary motion calling on ministers to ensure the Royal Mail remains publicly owned with “all shares continuing to be owned by the government” has been signed by 57 Labour MPs. This suggests Tony Blair, the prime minister, could struggle to get the parliamentary approval needed to part-privatise the postal operator by giving a 51 per cent stake to staff. The government has a majority of only 67 in the Commons and the Tories have said they are “sceptical” about the part-privatisation plan.
Read MoreUK Royal Mail defends service ahead of Dispatches blow
Royal Mail is attempting to pre-empt this week’s potentially damaging Channel 4 Dispatches programme, by claiming it is on course to beat its minimum delivery targets for the year. The documentary, Reopening the Post, shows various incompetent practices, such as agency staff being drafted in to sort mail and then told to deliver it without the aid of a map. Postwatch chairman Peter Carr also appears on the programme, accepting that progress is being made. He says: “Customers will be confused by the contrast between the good quality of service results published and the Dispatches revelations. Changing culture takes time.”
Read MoreUK Postcomm doubles fees to consultants as costs hit pounds 9m
The costs of running postal regulator Postcomm have soared from pounds 6.5m to pounds 9.04m in the last year, the organisation’s annual report has revealed.
A spokesman said yesterday that the increased cost was due to employing larger numbers of consultants as well as an increase in staff numbers. However, Postcomm, which makes decisions such as whether Royal Mail can put up the price of stamps, spent less money than it had expected because of the delay of some expected consultations. The spokesman said that Postcomm expects to spend the same amount next year although it hopes to employ fewer consultants and more staff. “The sort of people we need are very specialist.” It spent over pounds 5m on consultants last year compared with just over pounds 2m the year before.
Royal Mail pays for much of the cost of running its regulator, although as other firms begin to use licences for delivering the mail they will also contribute to the running costs.
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