Post Offices tell Government: 'Don't sell off Royal Mail'

[Budfrog]

Added to which large profits expect to be announced this week begging the question "if RM is such a profitable company why not retain it as a national asset and re-invest the profits?" (I think we all know the answer)

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[TrueBlueTerrier]

Full Article

The £2billion sell-off of Royal Mail should be postponed, Britain's post offices say today.

General Secretary George Thomson will tell delegates at the federation’s annual conference in Torquay on Monday that more needs to be done to ensure the network has a viable future before Royal Mail is sold.

The news is the latest blow to the Coalition’s plans to privatise the UK’s national postal service by March next year.

Last week it emerged that the Bow Group, a Tory think tank, was warning Conservative MPs against selling off Royal Mail.

The National Federation of Sub-Postmasters, which represents thousands of post offices, will call for an immediate delay in plans to privatise Royal Mail amid “serious concerns over the future of the post office network”.

General Secretary George Thomson will tell delegates at the federation’s annual conference in Torquay on Monday that more needs to be done to ensure the network has a viable future before Royal Mail is sold.

The federation is concerned that a privatised Royal Mail would not feel obligated to keep services with the post office network. Currently, the Post Office receives millions of pounds a year from Royal Mail to deliver key services.

There are fears this income will be lost, despite a 10 year “inter-business agreement” signed last year with Post Office Limited to safeguard the work.

He will say: “We must have confidence that the network can survive without Royal Mail before it is sold off. Currently, if privatisation goes ahead, the post office will be left in an even deeper crisis. It will be a company set up to fail.”

Mr Thomson will say the government has failed to deliver new work for post offices that would guarantee a sustainable future for the network post privatisation, and added the Government’s £1.3billion plan to transform the network was not enough.

He will say: “For the last three years we have been working with government to try and secure essential new work for subpostmasters, but the government has failed abysmally to deliver.

“In fact, sub-postmasters are now earning less from government services than they were three years ago, which is a damning indictment. For this reason, the NFSP is today calling for an immediate delay in plans to privatise Royal Mail.

“We are warning that the post office network left behind will have an extremely uncertain future due to the appalling lack of new work.

Post Office Limited was split from Royal Mail in April last year, on the understanding that post offices would become the ‘front office’ of government.

However, an income survey carried out by the NFSP has revealed that income from government services has plummeted.

The survey also revealed that only 17 per cent of subpostmasters saying they can see a strong future for their business.

The Daily Telegraph disclosed last week that Michael Fallon, the Conservative, minister in charge of selling off Royal Mail was firmly against the state-owned business’s privatisation just four years ago.

Mr Fallon told one of his constituents that he did not agree with plans by the Labour Government to sell off a stake in the company.Mr Fallon said last week that he took this position because "the previous Government's plans did not include shares for Royal Mail staff".

A Post Office spokesman said: "The Royal Mail is our key partner. Our businesses have run independently for over a year: this has strengthened our relationship and enabled each to concentrate on improving service to our customers this has shown in all our measures. Our futures are interlocked through our 10 year agreement.

"A strong Royal Mail with ongoing access to external capital will be a very valuable partner for the Post Office. As Royal Mail invests in growing its business - particularly parcels - we stand to benefit from our position as Royal Mail's partner all across the UK".

"The future ownership arrangements of the Royal Mail do not impact on our commitment to sustain our branch network at the heart of communities, a role which is vital to our customers in those communities.

A Royal Mail spokesman added: "The Post Office provides Royal Mail access to an unrivalled retail network, whilst Royal Mail remains the Post Office’s biggest customer.

"Royal Mail and Post Office signed an important, long term commercial agreement last year. Our mutual commercial success is best served by the two businesses working closely together.

"The Government’s significant financial investment in the Post Office, of £1.34 billion by 2015, the largest in its history, is creating a modern network with new-style branches and more convenient opening hours for customers. This will be a great strategic advantage for Royal Mail in the years to come."

[pants123]

Added to which large profits expect to be announced this week begging the question "if RM is such a profitable company why not retain it as a national asset and re-invest the profits?" (I think we all know the answer)

http://goo.gl/fxV37" onclick="window.open(this.href);return false;

exactly ROYAL MAIL does not need to be sold, it does not need external money and does not need funding being pulled away from schools and so on, re invest the profits to modernize ROYAL MAIL... simples... but the tories are all for themselves, greed for money and dont give a damn about peoples future in the slightest.... TORIES OUT.... no vote from me that is for sure...

[CLINTEASTWOOD]

Added to which large profits expect to be announced this week begging the question "if RM is such a profitable company why not retain it as a national asset and re-invest the profits?" (I think we all know the answer)

http://goo.gl/fxV37" onclick="window.open(this.href);return false;

exactly ROYAL MAIL does not need to be sold, it does not need external money and does not need funding being pulled away from schools and so on, re invest the profits to modernize ROYAL MAIL... simples... but the tories are all for themselves, greed for money and dont give a damn about peoples future in the slightest.... TORIES OUT.... no vote from me that is for sure...

fecking right bastards!!!!!!!!

[UnhappyGremlin]

Apparently, Paula Vennells gave a speech stating that the network would be maintained at it's current levels after RM's privatisation.
Don't think she was believed. Weird. It's almost like we have been lied to before.