CWU calls on government to fund Royal Mail

by Daniel Farey-Jones, Brand Republic 20-May-08, 12:25

LONDON - The Communication Workers Union has set itself against Postcomm's call for private investment in Royal Mail, appealing to the government to give the company fresh financial support.

The union wants the independent panel conducting the government-commissioned review of the postal market "to stick to its brief and leave the ownership issue to government".

In its submission to the current consultation it recommended the panel ignore the suggestions of Postcomm, which it heavily criticised.

It said: "[Postcomm] has proved itself incompetent through introducing poorly formed and timed competition which has worsened the service provision, stifled product and service innovation and created a financial crisis for the biggest mail carrier."

The current price control should be scrapped and replaced by a mechanism "that ensures the real cost of maintaining the universal service (and the fixed infrastructure that supports it) is met by all those who use it".

Last week Postcomm submitted its evidence to the review panel, in which it argued Royal Mail needed private capital and a stronger set of incentives to enable it to restructure and improve its financial performance.