PO review Royal Mail signals UK sell-off
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• The prospects for a privatised UK mail service increased last week as the Government announced a review of the organisation and structure of the Post Office.
Postal sources and the Union of Communication Workers herald the move as a precursor to further liberalisation of the post and probably the privatisation of the Royal Mail. This is despite a statement by Michael Heseltine, president of the Board of Trade, saying that the consideration would cover continued public sector ownership of the Royal Mail and Post Office Counters. Last month the Government announced the selloff of Parcelforce.
Advisers to the Department
of Trade and Industry say the format of the sale of the Royal Mail, with its 28,500-strong commercial vehicle fleet, is wide open, It could involve an employee/management buy-out of part or all of the business.
Or it could lead to private carriers buying up Royal Mail regional companies while building on present opportunities to take over some operations, such as trunking.
The advisers also say the Government is in favour of a sell-off and that management within the Post Office are "not opposed to the idea". They also point out that two major obstacles to change — the election and other larger privatisations — are out of the way.