Royal Mail buy-in plans
Page 13
If you've noticed an error in this article please click here to report it so we can fix it.
by Karen Miles
• Methods of encouraging the Post Office's 37,000 drivers to buy into a privatised Royal Mail and Parcelforce are under discussion at the Department of Trade and Industry
The DTi, pushed on by a cash
hungry Treasury and impatient Post Office management, has held a series of meetings to study the best way of making Post Office staff owners of a floated business.
Also under discussion is how to liberalise the letters market separately and the level of monopoly needed to encourage private carriers, while protecting the Royal Mail's commitment to nationwide collection and delivery.
It is thought that if Trade President Michael Heseltine is prepared to take the political risk involved with selling the Post Office, the legislation could be announced in this November's Queen's Speech. That would then allow the Government two years to pass the legislation and would earn the Treasury £2bn.
The flurry of meetings is seen as a signal of heightened interest in the future ownership of the Post Office after over a year's indecision.
Heseltine first said he was looking at the i.s.sue last July and since then there have been repeated complaints from Parcelforoe and Post Office management that the limbo is damaging business.