Tag: Royal Mail

VAT on Stamps? – comment from UK Postcomm

Posted by | May 7, 2003 | |

The European Commission has published a draft directive which, if agreed by member states, would require VAT to be charged on mail services. However, it is important to remember that Royal Mail cannot currently reclaim VAT that it pays on the services it buys from other companies. Also, the draft directive allows VAT to be charged at a reduced rate. Therefore, if the UK were to charge VAT at around 5%, we believe that this would largely cover the VAT that is currently paid by Royal Mail, so, contrary to the initial press reports, it should not be assumed that stamp prices would have to rise. It seems most unlikely that the UK Government will agree to impose VAT at the full 17.5% and so increase stamp prices by several pence and this is not a course of action that we consider would be in the customers’ best interests.

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UK Royal Mail 'losing £2m a week'

Posted by | May 7, 2003 | |

The Royal Mail is still losing at least GBP2m a week, its new chief executive has admitted. Adam Crozier told the BBC the continuing “sizeable losses” were disappointing but the company had “definitely turned the corner”. But he added that he still faced a huge task turning things round.

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Royal Mail strikes GBP1.5 billion computer deal

Posted by | May 6, 2003 | |

The Royal Mail today signed a GBP1.5 billion contract to outsource computer work to private companies in a move aimed at saving the postal group GBP250 million over the next 10 years. More than 1,700 Royal Mail information technology staff will transfer to Computer Sciences Corporation (CSC), BT and Xansa, which will be responsible for running data centres, desktop computers and hundreds of business application systems. Adam Crozier, Royal Mail Chief Executive, said: “This is a great deal for Royal Mail and a great deal for our people. It is a vital component in our renewal plans in terms of reducing costs and giving us the information technology services that we need to make Royal Mail a great company.”

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EU VAT plans `will add 5p to UK postage stamps'

Posted by | May 6, 2003 | |

European plans to impose VAT on national postal services could put 5p on the price of a stamp, it was claimed today. The Government vowed to oppose the idea, as both Conservative and Labour Euro-MPs condemned it as an unnecessary new burden on consumers. But EU Tax Commissioner Frits Bolkestein insisted there would be no “significant” price rises and said he was just trying to create fair competition between traditional state postal services and private rivals.

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Royal Mail’s John Modd appointed to Spring management board

Posted by | May 6, 2003 | |

Royal Mail has announced the secondment of John Modd, previously Managing Director of its International Services business, to Spring, the joint venture cross border mailing company established by Royal Mail, TPG and Singapore Post. Mr Modd took up the role of Vice President Strategy and Business Development on May 5 2003. Based at Spring’s Headquarters in Amsterdam, John will report direct to Spring’s CEO, Theo Jongsma.

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