Government reveals Royal Mail privatisation plans


The government has unveiled its Postal Services Bill, outlining
its plans for the privatisation of Royal Mail. The Bill, which is
set to be scrutinised and debated by parliament in the coming
months, proposes that at least 10 percent of the shares in a
privatised Royal Mail will go to its employees. Further, Royal
Mail will be relieved of its pension deficit by the government.
With regards to the requirements of the universal postal
service-collection and delivery of post six days a week at
uniform, affordable prices-the government says it has no
intention of downgrading them and has written the requirements
into the Bill. In addition, the Bill will transfer Postcomm’s
regulatory responsibility to Ofcom, the communications
regulator.
Royal Mail welcomed the bill, with chief executive Moya Greene
commenting that Royal Mail was “committed to making
modernisation work”. The Communication Workers Union, on
the other hand, has criticised the government’s “obsession
with privatisation”. It claims that a privatised company
will be “interested in the bottom line, not the communities
served by Royal Mail”.

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