The search for a successor to Allan Leighton, the chairman of Royal Mail, has been abandoned by the Government.
Allan Leighton's term as chairman of Royal Mail ends next March
The move follows attempts to persuade a number of high-profile businessmen to accept the job.
Whitehall sources insisted the decision had nothing to do with the failure to find a replacement. Instead, they said, the priority had been to strengthen the board in other ways, such as through the appointment of non-executive directors, and added that the search could be resurrected.
The Government first advertised for the position of deputy chairman last autumn in what was widely seen as a precursor to appointing a successor to Leighton. However, approaches to several businessmen, including Sir Philip Hampton, the chairman of J Sainsbury, and Sir John Parker, the chairman of National Grid, failed. Hampton was widely seen as the frontrunner but it is believed he rejected the offer as the Government refused to commit itself to a full privatisation of the organisation. Leighton's term ends next March and it is believed he would be happy to stay on for a third term.
A spokesman for the Department for Business said: "The post has been advertised but there is no timetable for filling it."
The news comes just two days before Tuesday's deadline for Royal Mail to reach agreement with the Communication Workers Union (CWU) in the long-running dispute over modernisation of the organisation. Postal workers voted in favour of industrial action in June after rejecting a pay offer of 2.5 per cent, plus bonuses and local productivity savings.
Royal Mail has consistently said it cannot afford a higher pay offer and that modernisation is essential for it to -compete.
The CWU suspended industrial action on August 9 in favour of peace talks. As part of the agreement the two sides agreed not to hold any media or internal briefings.
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