Royal Mail Sale Risks 50,000 Jobs

[TrueBlueTerrier]

http://news.sky.com/skynews/Home/Busine ... per_Report_

In a deal worth around £3bn, at least a third of the state-owned firm would be sold to a private company, the reports say.

Half of the postal service's 71 mail centres could be closed and the business broken up and offered to its rivals.

Collection and sorting could be divided and stakes offered to other operators.

The "last mile" delivery is likely to stay with the Royal Mail.

The unions are reporting up to 50,000 jobs could go, which is one third of the workforce - but ministers consider this figure to be alarmist.

The radical shake-up is believed to be recommended in a report by Richard Hooper, formerly of media watchdog Ofcom.

It was delivered to ministers last week and was being discussed by the Cabinet today.

The report apparently warns the Royal Mail's pensions deficit, which was £3.4bn in 2006, is likely to have doubled when a new valuation is made next year.

It includes calls for a speeding up of modernisation to maintain a "universal service", which include post being delivered six days a week.

The Conservatives have said industry sources suggested the Government was planning to "seize" the £22bn in the Post Office pension fund and use it to make it look as though Government borrowing figures were lower.

Shadow business secretary Alan Duncan said the sale would put the country "further into debt" and leave future generations to foot the bill.

"People will be appalled that the Government has resorted to raiding pension funds in order to plug the black hole in the public finances," he said.

"I fear the Government is going to raid £22bn of pension assets, dump the liability as a mortgage on future generations and dress it up as the salvation of the Royal Mail.

"This is a dangerous plan that must be resisted."

There was no official reaction to the report, apart from a reiteration from a source close to Business Secretary Lord Mandelson.

"Our concern is to save the Royal Mail and secure its future, not privatise it," the source said.

"We have a manifesto commitment to a publicly-owned Royal Mail and we will not be setting that aside."

Lord Mandelson is expected to publish the investigation and give the Government's initial response in a speech to the House of Lords.

[DGP1]

The Conservatives have said industry sources suggested the Government was planning to "seize" the £22bn in the Post Office pension fund and use it to make it look as though Government borrowing figures were lower.

I don't like that

I think I'm going to hold off 'going postal' until I can read the report, at least my blood pressure will stay down for a while

[TrueBlueTerrier]

Video report http://news.sky.com/skynews/Home/video/ ... rchresults

[TrueBlueTerrier]

Hooper report in down loads http://www.royalmailchat.co.uk/communit ... 36&t=13119

Many thanks to YEOVIL OASIS

[BELIAL]

The Conservatives have said industry sources suggested the Government was planning to "seize" the £22bn in the Post Office pension fund and use it to make it look as though Government borrowing figures were lower.

I don't like that

I think I'm going to hold off 'going postal' until I can read the report, at least my blood pressure will stay down for a while

I don't think you will find that bit in the report, they are refering to some tricky sleight of hand book keeping technique . It involves the govt. telling you they will take care of the deficit , but actually seizing control of the pension fund assets and merging them with their overall balance figures to hide some of the stuff they gave to the Banks