£8m deal is ‘another nail’ in Royal Mail coffin
THE Scottish Government has awarded a multi-million pound postal contract to a private company in a move that has been denounced as "another nail in the coffin of the Royal Mail".
The revelation that an £8million deal has been sealed with TNT Post to deliver mail for 89 public sector bodies across Scotland, including hospitals, councils and colleges, comes as last-ditch talks between Royal Mail management and trade unions to avert a nationwide postal strike tomorrow showed no signs of success.
Commenting on the TNT deal, Alistair Carmichael, the Liberal Democrats' Scottish spokesman, said: "Without business of this sort, the Royal Mail will become unsustainable."
The Orkney and Shetland MP described the contract as a "false economy" because, ultimately, ordinary people would have to pay more for their daily delivery service through higher charges levied by either a struggling Royal Mail or a private-sector provider.
"It is another nail in the coffin of the Royal Mail," he added.
However the Scottish Government stressed the agency, Procurement Scotland, which agreed the deal, was set up last year "to secure the best possible value for public funds".
Its spokesman said the agency had awarded two contracts covering most of Scotland's public bodies. A £17m first-class mail contract has been awarded to Royal Mail but a £8m second-class mail contract has gone to TNT Post.
The spokesman added: "This will save the public purse £2.95m annually."
Publication date 21/10/09
I wonder who will deliver this 
