Ed Davey MP: Royal Mail finances worse than expected

[TrueBlueTerrier]

http://www.hounslowchronicle.co.uk/west ... -26606421/" onclick="window.open(this.href);return false;

In my last column, I promised to “update you on my new Ministerial responsibilities working with Vince Cable in the Department for Business, Innovation and Skills” – so here goes.

My main responsibilities in the Business Department cover Employment, Trade Policy, Competition Policy, Company Law, Consumer Affairs and Postal Affairs (including Royal Mail and Post Office Limited).

As my training was in economics and business consultancy, this is particularly exciting for me.

It also means I’m working closely with Vince Cable, our Cabinet Minister, on key aspects of economic policy – and with specific challenges, springing from the Coalition Agreement.

My most immediate, without doubt, is securing Royal Mail’s future. So let me focus on that.

I knew Royal Mail’s finances were bad – but I hadn’t realised how bad. Especially the huge pension deficit, estimated by some at nearly £10 billion – proportionately the worst in Britain.

With their core letter business contracting fast thanks to email and the internet, Royal Mail desperately need investment to modernise.

Yet with spending to be cut, given the massive deficit, there will be no taxpayer investment available. So we must find private capital, with some form of privatisation.

Now that may prove unpopular – but I never expected Government to be easy!

My message to employees and others who question this is straightforward: how else can we ensure the pensions of thousands of former and current postal workers?

But I’m also clear we should separate local Post Offices from Royal Mail’s business of letter and parcels delivery.

[fishtank]

how else can we ensure the pensions of thousands of former and current postal workers?

Well.....you could try throwing a tiny fraction of the hundreds of billions the previous goverment used to bail out the corrupt banking system at it.
Just a thought Ed......
And here is just another one while your at it...does this mean that every public service with a pension deficit should be privatised.

The Police.....Deficit
The Fire Service....Deficit
The NHS......Deficit
Teachers.......Deficit
The Armed Forces.....Deficit
Local Councils..........Huge Deficit
Why don't we sell them all....should be a laugh.

[motherhubbard]

Now that may prove unpopular – but I never expected Government to be easy!

What twat gave this twat a job in the Business Department?

[Lounge Lizard]

"I knew Royal Mail’s finances were bad – but I hadn’t realised how bad. Especially the huge pension deficit, estimated by some at nearly £10 billion . Yet with spending to be cut, given the massive deficit, there will be no taxpayer investment available. So we must find private capital, with some form of privatisation." So, some courier company is going to approach the government and say 'We would like to invest in Royal Mail, and by the way, here's £10 billion we've got spare to clear the pension deficit' - that's how it works is it Eddie boy ?

[Night Tonic]

Well.....you could try throwing a tiny fraction of the hundreds of billions the previous goverment used to bail out the corrupt banking system at it.
Just a thought Ed......

And what money would that be? You want everyone to pay on top of the deficit we already have? Think again, not going to happen.

[johno47]

Perhaps they could ask the Conservatives for some of the Billions of pounds they took out of RM back from when they were in power the last time, what was it, OH yes, 90% of the proffit every year, and at the same time taking a pension holiday from our pension, that might be a good start....

[fishtank]

Well.....you could try throwing a tiny fraction of the hundreds of billions the previous goverment used to bail out the corrupt banking system at it.
Just a thought Ed......

And what money would that be?

.....that would be from that never ending pot that has been used over the past few years and will no doubt be used over the next few despite Mr Cameron-Cleggs protestations....Goverment borrowing.

You want everyone to pay on top of the deficit we already have?

....not quite sure what you mean...if you mean would i rather pay higher taxes to protect the pensions of the public sector or would i prefer to pay higher taxes to protect the bonuses of the bankers....let me think.

Think again, not going to happen.

....i know,it was not a serious request...i don't think Mr Davey is a member of RMC,by the way how is life on the deckchair....your pension ok?

[Night Tonic]

Nowt wrong with dreaming Fishtank but I thought by now even you could grasp the future is orange, or blue or green or some other colour except Royal Mail red. Mind you, with the "we can only win" brigade now with its back to the union, the womens guild may lend support in between making pots of jam. To be fair there are no shortage of things to spend money on but pensions are going to be a very long way down the list right now.

[fishtank]

Nowt wrong with dreaming Fishtank but I thought by now even you could grasp the future is orange, or blue or green or some other colour except Royal Mail red..

I saw that future in '97 when Tony first started hijacking Tory policy.
I am just suprised it took so long.

[DGP1]

The problem with the RM pension is that it's worth a few pounds to the Government (£20/£25 billion) which they wanted to take in order to take over the pension deficit. The only way any other company is going to 'invest' in RM is if the pension issue is resolved (no company would buy into a company that is technically bankrupt) and the only way that is going to happen is for the Government to take over the pension which gives them money to pay off some of the deficit but then.......................oh crap this could just go round in circles

Suffice to say that our pension is going to pay off the bankers debts