News

The Financial Times is reporting that the UK government will today pave the way for the part-privatisation of Royal Mail, as it publishes a report warning of the financial pressures on the postal operator. The news paper which is publishing leaked information about the report in an apparent "softening up" process by the government, has said that the Royal Mail is "technically insolvent" and drastic action is needed to fix the problems. Lord Mandelson, the UK Business Secretary, is reported as backing the recommendation of the independent Hooper review that Royal Mail needs an injection of private sector capital. But it is claimed that he will rule out the full privatisation.

Government officials are dismissing reports that up to 50,000 jobs at Royal Mail could be at risk. But officials said the modernisation that the state-owned company needed would inevitably result in job losses. In a response to the leaked information, Billy Hayes, CWU general secretary is quoted as saying "The majority of decent politicians and the general public are fed up with privatisation. We have all seen the failure of the market, so why would you recommend any sort of privatisation of one of Britain's key public services?

For the full Financial Times article go to; http://www.ft.com/cms/s/0/8306e77e-cb1a-11dd-87d7-000077b07658.html