Government gives £47M to Royal Mail's competitors

1st Mar 09 : POSTMAN

Government departments since 2002 have used private postal and delivery firms for their mail needs and have payed out nearly £47M to them in the process.

Even Lord Mandelson’s department has contracts with DHL and international couriers Lewis Day,along with the likes of HM Revenue & Customs,the Department for Work and Pensions and the Foreign Office who have multi million pound contracts with the likes of TNT and UK Mail.

Due to pricing regulations set by 'another' Government department,Royal Mail lose out because they are not allowed to under cut the private firms.

Between January 2005 and November 2007, HM Revenue & Customs paid TNT nearly £25million. Two years ago, the Department for Work and Pensions awarded a £12million contract to UK Mail, while the Foreign Office has spent nearly £10million with private delivery firms.

Billy Hayes

"It makes no sense for Government departments to use private mail companies when they are the owners of Royal Mail.

This is a spectacular example of non-joined-up government. How can the Government expect Royal Mail to be successful if even they don’t take advantage of their services?"

Shadow Business Minister Jonathan Djanogly

"This sort of careless attitude is typical of a Government that has brought Royal Mail to its knees after 12 years of shameful neglect.

Labour Ministers allowed Royal Mail’s service to its customers, the taxpaying public, to deteriorate but were happy enough to use other companies for their own letters. It’s another example of the utter hypocrisy of this Government."

Source:Mail

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