Questions in the House of Common

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Royal Mail: Pensions
Business, Innovation and Skills

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Ian Murray (Edinburgh South, Labour)

To ask the Secretary of State for Business, Innovation and Skills

(1) what support he plans to provide to Royal Mail in the event that state aid approval for the pension fund transfer is not granted; and what recent discussions he has had with Royal Mail on this issue;

(2) what contingency planning his Department is conducting should state aid approval for the Royal Mail pension fund transfer not be granted;

(3) when he expects a decision to be made on state aid approval for the Royal Mail pension fund transfer;

(4) whether the Royal Mail pension fund will be recorded as public sector borrowing should state aid approval not be granted for its transfer.

Hansard source (Citation: HC Deb, 19 January 2012, c922W) http://www.publications.parliament.uk/p ... 1944000341" onclick="window.open(this.href);return false;

Edward Davey (Parliamentary Under Secretary of State (Employment Relations, Consumer and Postal Affairs), Business, Innovation and Skills; Kingston and Surbiton, Liberal Democrat)

Officials continue to work with the EU commission to achieve a decision on the Royal Mail State aid case by 31 March, which will allow Government to implement its policy of relieving the pension deficit. As a matter of prudence, officials have been undertaking contingency planning in the event that this timetable is not met, and have discussed contingency planning with Royal Mail.

As Royal Mail is a private sector entity, the Royal Mail Pension Plan does not impact the public accounts. The expected impact of the transfer of liabilities and assets to Government is outlined in the Office for Budget Responsibility's Economic and Fiscal Outlook report:

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