10 September 2010
Richard Hooper's latest report surrounding the Royal Mail states
that it will only be maintained by an injection of private sector
money and expertise.
Business Secretary Vince Cable commented on the report.
"Royal Mail is facing a combination of potentially lethal
challenges - falling mail volumes, low investment, not enough
efficiency and a dire pension position."
"We will come forward with new legislation in the autumn. It
will draw heavily on Hooper's analysis and recommendations and the
government's wider objectives, including the need for employees to
have a real stake in the future of the business."
The report discusses the issues surrounding the pension scheme
more then 50 times and argues that the private sector can only
provide the financial support necessary to modernise the service as
the government no longer has the finances available to them.
The latest report repeats a key recommendation mentioned
previously, advising that the £8bn deficit should remain with
government if the Royal Mail is sold to relieve the company of
having to fund extra contributions to remove the deficit.
Mr Hooper said.
"The introduction of private sector capital is by itself far
from sufficient to secure the future of the universal postal
service."
"Its future depends just as much on resolving the closely
connected issues of the pension deficit and the need to transform
postal regulation."
