PO sell-off is receding fast
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by Karen Miles • The prospect of wholesale privatisation of the Post Office appears to be receding rapidly as it emerges that any sell-off plans look set to fall victim to the Government's political crisis.
The privatisation back-off would leave hungry private carri ers—already disappointed through learning there will be little liberalisation in the letters market—further downcast because of the lack of a shake-up in the postal market.
This picture emerges as sources close to the year-long Department of Trade and Industry review admit even if the Government had the political bottle to sell the Post Office it is now unlikely to have the parliamentary time to complete the process.
A decision on the thorny privatisation issue has been badly delayed by other Government problems, noteably the pit closure furore, the resignation of Chancellor Norman Lamont which led to the replacement of the minister responsible for the issue and the heart attack suffered by the Board of Trade president Michael Heseltine.
Because of the summer parliamentary recess which starts this week, no announcement on the future of the Post Office is expect
ed until at least December or even the New Year. This leaves too little time for the massive parliamentary timetable needed for the sale of Royal Mail and Post Office Counters.
However, the situation is less clear for Parceiforce. Any sell-off of the parcels company only requires Heseltine's signature. The Government is still publicly stating it plans to sell Parcelforce, either separately or as part of a Post Office sale. However, half of its directors are understood to believe Parcelforce will stay in the state sector.