EU authorises $1.3 bln UK aid for postal service

[TrueBlueTerrier]

LINK

BRUSSELS, Nov 29 (Reuters) - The British government may help its post offices with 634 million pounds ($1.3 billion) of funding starting on April 1 without violating EU state aid rules, the European Commission said on Thursday.

The European Union's top competition watchdog said the British government may also continue providing loan facilities for cash services at post office counters.

State aid is generally illegal but an exemption exists for public services.

"Under the community framework for state aid in the form of public service compensation, it is for the member states to define the public service," in this case postal services, the Commission said in a statement.

The Post Office is state-owned and operates 14,000 branches around Britain. Many of its services are inherently loss-making, the Commission said.

"The post office network is entrusted with important public service tasks and the Commission is satisfied that the requirements of the community framework for state aid in the form of public service compensation are met," it said. (Reporting by David Lawsky; editing by Dale Hudson)

[NWpostie]

It would have to be said, that Royal Mail for its faults do provide a useful and ESSENTIAL service in remote areas, Post Offices do not make much money in these areas, but they are most needed with a large coverage that Banks could not hope to Duplicate, PostBus goes to these areas that Commercial Bus do not go, in addition to this we provide Postal and Parcel service at a much lower cost to Commercial Carriers, such as TNT, DHL, if UKMail and TNT post were to try to deliver thier own mail instead of downstream access, it would NOT be viable, Royal Mail biggest problem is Incompetent managements, Pre-Historic attitude to staff, Royal Mail as an Insitution is worth preserving, because it provide a non partisan Public Servce, the sooner we get back to basics the better for all, when I joined 20 years ago, I remember when it was a Public service, Management and Union were pulling in the same direction, strikes were rare, as most things were sorted amicably, Minor infractions just got you a Bollocking and it was forgetten about, now its all "fact finding interviews" , conduct hearings, , letters and procedures adding to Stress that you didn't need, the waiting for the final decision was the worse part and it could take weeks.

Royal Mail should and MUST remain in public service and be supported accordingly, Privatisation is not a viable option, if it goes under, there is nothing to replace it, the private carriers will laughing all the way to the Bank at the expense of the Public.

Privatisation was tried in Sweden, Canada in both cases it was an unmitagated disaster, mass closures of Post Offices, reduction in Mail service, redundancies, prices of Stamps went up, they still could not make a profit. even USA shied away from the Idea and the USPS remained Federal.