Lord Mandelson says RM needs millions for gale-force change

[johnnyp]

http://www.timesonline.co.uk/tol/news/p ... 519593.ece" onclick="window.open(this.href);return false;
From The TimesJanuary 15, 2009

Lord Mandelson says Royal Mail needs millions for 'gale-force change'Christine Buckley, Industrial Editor
Royal Mail needs hundreds of millions of pounds to modernise and keep pace with rivals, despite receiving billions of public money in the past decade, Lord Mandelson told MPs yesterday

The Business Secretary said that management had been slow to modernise and change was needed at a “gale-force” pace, which having a commercial partner would ensure.

Lord Mandelson reaffirmed plans to sell a minority stake in Royal Mail to a commercial rival despite growing opposition from Labour backbenchers and the unions. The largest postal union could disaffiliate from the Labour Party over the issue. The minister entirely supported the Hooper review, which said that Royal Mail needed the extra investment and management expertise that a rival could bring. TNT, the Dutch group that operates in Britain, is the front-runner. More than 70 Labour MPs have signed a motion against the move.

Lord Mandelson told the Commons Business Select Committee that selling a stake would not flout Labour's manifesto pledge to keep Royal Mail in public ownership.

Opponents of the move say that Royal Mail has yet to spend £600million that it was given in a £3.9billion rescue package two years ago. The Business Secretary said that the fact that the money had not been spent showed that Royal Mail was slow to modernise.

His comments are a damning indictment of Allan Leighton, who will quit as chairman in March, and of Adam Crozier, the chief executive. Lord Mandelson said that the problem was not commitment by the Government but Royal Mail's “management, its culture, the ethos of the company including its industrial relations”.

The Government needs primary legislation to sell a stake in Royal Mail. The Business Department is thought to be trying to push it through by Easter.

[G4GYJ]

Just watched Mandy squirming, the man has no idea does he. Just like the rest of the chair polishers that seem to think that they can run Royal Mail. He speaks about E mails etc replacing letters. 30 odd years ago (When one pouch of mail was taken out) they were talking about the decline in letters being posted because of the telephone. wish I was taking one pouch of mail out know. Mandy has not done his home work on Royal Mail, don't he relise that packet and parcel traffic is rising all the time. In a reccesssion people are going to look on the internet more to see if things are cheaper, the amount of CD's and DVD's that we are delivering is going up all the time. With the collapse of Woolies and now Zavvi (Branson sold that one in the nick of time) people are going to turn to the likes of Amazon and Play.com.
We do not need foriegn interference in Royal Mail, down steam access should be priced at the going rate and not at a knock down price. I have spoken to many collegues from Salary Band 8 down to Rank and file and no one supports this idiotic scheme.
We should pull the plug on funds to the Labour Party NOW and only reconsider reinstating it when this private scheme is dead and buried for ever.
:mfo :mfo The govenment should take responsibility for the Pension fund, if that was taken out of the picture there would be more money for reinvestment.
One more thought, Mandy is supporting the cutting of jobs when Brown wants to spend more money to help save jobs. where's the sense in that. Good night for now.

[POSTMAN]

£3.9billion rescue package two years ago

That aint right is it!

[johnnyp]

£3.9billion rescue package two years ago

That aint right is it!

I thought it was about £1.2 billion mate.

[POSTMAN]

£3.9billion rescue package two years ago

That aint right is it!

I thought it was about £1.2 billion mate.

Yes that was the commercial loan,and £850M which we had saved was put in a savings account.

[DGP1]

£3.9billion rescue package two years ago

That aint right is it!

RM was given £1.7 billion in loans from the government two years ago and according to the last set of accounts (07/08) only 500 million had been spent.

[POSTMAN]

http://news.bbc.co.uk/1/hi/business/6386425.stm" onclick="window.open(this.href);return false;

Figures don't add up.

[POSTMAN]

It's the way ministers and the press put things,if you was a tax payer and not in the know,you would go mad with the amount of money Royal Mail seems to have had out of the nations purse.
Smoke and mirrors bullshit!

[Big Daz]

Pensions escrow account we cant touch the money in it and as far as I knwo that escrow money was part of the 1.2 billion.

Go back to the time of the funding deal loan thingy

[k979aaa]

Just watched Mandy squirming, the man has no idea does he. Just like the rest of the chair polishers that seem to think that they can run Royal Mail. He speaks about E mails etc replacing letters. 30 odd years ago (When one pouch of mail was taken out) they were talking about the decline in letters being posted because of the telephone. wish I was taking one pouch of mail out know. Mandy has not done his home work on Royal Mail, don't he relise that packet and parcel traffic is rising all the time. In a reccesssion people are going to look on the internet more to see if things are cheaper, the amount of CD's and DVD's that we are delivering is going up all the time. With the collapse of Woolies and now Zavvi (Branson sold that one in the nick of time) people are going to turn to the likes of Amazon and Play.com.
We do not need foriegn interference in Royal Mail, down steam access should be priced at the going rate and not at a knock down price. I have spoken to many collegues from Salary Band 8 down to Rank and file and no one supports this idiotic scheme.
We should pull the plug on funds to the Labour Party NOW and only reconsider reinstating it when this private scheme is dead and buried for ever.
:mfo :mfo The govenment should take responsibility for the Pension fund, if that was taken out of the picture there would be more money for reinvestment.
One more thought, Mandy is supporting the cutting of jobs when Brown wants to spend more money to help save jobs. where's the sense in that. Good night for now.

Well said and mandy can blow a new wind of change by not sucking up to T.N.T and their like!. But it seams to me he only gives blow job's to the dutch the Russian's and the German's how's that for a wind of change!. We did not give up our rights nor our life's too this labour? government that seeks to sell us all out to foreign competition and put us all in the depths of despair!. We are proud to be British and we will never cave in to his wind of change!. And long may he blow himself through the door's of Westminster and the corridors of power and into Europe and beyond it's boundaries!. And save us all from this windbag!. :mfo :mfo :mfo :mfo :mfo :mfo :mfo :mfo :mfo :mfo :mfo :mfo :mfo