Tag: Royal Mail

Opposition 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.

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UK 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.”

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UK 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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UK Royal Mail beats delivery targets

Royal Mail produced its best performance in a decade during the first quarter of the year with more than nine out of 10 first and second class letters arriving on time, according to independent research results published yesterday.
The national postal operator delivered 93.4 per cent of first class letters the day after posting, beating its target of 93 per cent. Second class mail beat its target level of 98.5 per cent delivered within three working days with a 98.6 per cent performance. Although the figures did not cover all 14 of the performance goals set by Postcomm, the regulator, they reflect service levels for 90 per cent of Royal Mail’s volumes. Adam Crozier, Royal Mail’s chief executive, said: “Royal Mail is determined to do even better than the record quality of service our postmen and women are delivering. Independent research is showing our performance running at a world-class level but Royal Mail wants to be demonstrably the very best and most trusted postal service in the world.”

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UK Regulator rebuffs Royal Mail attacks

The postal services regulator has rebuffed Royal Mail’s attacks on its proposed price controls, dismissing the company’s warning it would be sent into a spiral of decline as “only to be expected”. Sarah Chambers, the chief executive of Postcomm, told a London conference the regulator did not intend to relax its proposals simply because of the Royal Mail’s intense lobbying. Ms Chambers said the watch-dog was prepared to listen to new evidence during the consultation on the proposals, which are due to be finalised in November. But she added that Postcomm’s financial analysis of Royal Mail was based on “evidence we’ve extracted – and it does feel like extraction sometimes – from Royal Mail”.

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