Tag: UK

UK government gets ready to deliver billion-pound Post Office overhaul:TNT alarmed by move it sees as anti-competitive

Posted by | May 19, 2006 | |

Royal Mail and the government unveiled details yesterday of a framework agreement on an investment package aimed at allowing the company to modernise its postal sorting operations, restructure the Post Office network and tackle its pounds 5bn plus pension fund deficit. The trade and industry secretary, Alistair Darling, said the deal would give Royal Mail the resources and borrowing facilities to secure its future. However, the agreement came in for sharp criticism from TNT Post UK, one of Royal Mail’s rivals in the postal market. TNT is threatening to refer the agreement to Brussels under European Union rules on state aid. “We are alarmed at the decision to waste pounds 1.75bn of taxpayers’ money and damage new competition in the postal market by giving such an enormous handout to a highly profitable organisation,” said its chief executive, Nick Wells.

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UK Royal Mail staff to get pounds 5,000 in shares

Posted by | May 19, 2006 | |

The Government is poised to hand 20 per cent of Royal Mail to its workforce by giving each of the organisation’s 195,000 employees pounds 5,000 worth of free shares. The move follows the announcement yesterday of a pounds 3bn bail-out of Royal Mail to resolve its pension crisis, modernise the letters business and fund the loss-making network of rural post offices. The employee shares will be controlled by a special trust so no outside investors can buy a stake in Royal Mail. Employees will be able to trade the shares between themselves and will receive an annual dividend but they are not expected to be allowed to keep them if they leave the company. Details of the scheme, which Royal Mail’s chairman, Allan Leighton, regards as central to his recovery plan for the business, are still being worked on but are due to be finalised in the next three to six weeks.

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HMV fights sales dip with home delivery service

Posted by | May 19, 2006 | |

HMV is planning to roll out a store-to-door home delivery service to give shoppers in smaller stores access to its full range. The entertainment retailer has piloted the service in 20 outlets, but will expand the operation across its estate from August. The news is part of HMV’s fight-back strategy as it attempts to become a major multi-channel retailer and reverse its sales decline.

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TNT Logistics UK wins Disney Store contract

Posted by | May 18, 2006 | |

The Disney Store Ltd has awarded TNT Logistics its UK distribution contract – and TNT is utilising vehicles assigned to another customer to benefit both of its clients. The TNT liveried vehicles are used to deliver Nissan Renault spare parts to 450 dealerships throughout the UK at night, and then part of the fleet is used to deliver merchandise to the 59 Disney stores in the UK during the day.
“Both clients are based at Magna Park in the Midlands and by maximising the use of the vehicles, we are reducing costs for everyone,” says Rob McWhirter, Managing Director Business Development, TNT Logistics UK Ltd.

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Long-awaited postal package unwrapped

Posted by | May 18, 2006 | |

Why does Royal Mail want government finance?To cope with competition in postal services where it lost its monopoly in January. It needs to invest up to Pounds 2bn in modern sorting equipment and needs government help to avoid closing loss-making post offices. On top of that, it has to pay off its Pounds 5.6bn pension deficit without putting up prices so much that it loses business to competitors.Aren’t stamp prices rising to provide the cash?Yes. Postcomm, the regulator, has agreed to higher stamp prices over the next four years that should provide enough to invest in new equipment. The rises should also allow the pension deficit to be paid off over 17 years. But a lot could happen in 17 years – especially if Royal Mail loses a lot of business.

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