Tag: Royal Mail

The Government injection of a further GBP300 million into securing the future of rural post offices until 2008 could be seen as a “fudge”, said the general secretary of the National Federation of Sub-Postmasters this week. The cash is on top of the GBP150 million annual subsidy which runs until 2006 but Colin Baker, whose organisation represents mainly rural people, said on Wednesday: “This is a two-year rollover and could be seen as a fudge to keep an ailing network as it is. But it does give us two years and we must use them wisely. What the federation wants to achieve is a sustainable and viable rural post office network because it is not, then communities will not be sustainable and viable.” The pledge has been seen by many as the government’s way of heading off a political row on the run-up to the next election. It is also understood that the continuation of the subsidy indicates that the government-owned Royal Mail will not be privatised.

Postcomm has issued the first details of compensation under new rules to refund Royal Mail’s bulk mail customers.

Royal Mail has been asked to pay back up to 5 per cent of income from companies affected when it failed to attain service targets last year. The move could cost it millions of pounds in refunds to frequent mailers, such as financial companies.

The postal operator has agreed to the compensation levels, which should be repaid by the end of August, according to Postcomm’s website.