Additional Information


DTI rubbishes reports of pact to privatise Royal Mail

LONDON – The government has denied that there are any plans to partially privatise Royal Mail, in the wake of newspaper reports claiming it had given chairman Allan Leighton a 'private pledge' to do so.

Share this article

The Mail on Sunday reported that Leighton made this a condition of him agreeing last week to stay on as chairman for the next three years.

Leighton is believed to want to offer 31% of Royal Mail to investors, which would raise around £4bn, and give 20% of it to its workers.

The story drew a strong denial from the DTI and opposition from the Communication Workers' Union. CWU general secretary Billy Hayes said the organisation should remain in the public sector.

A Royal Mail spokesman said: "It is a matter for the government and it is our understanding that it is not on its agenda."

Leighton and chief executive Adam Crozier are currently gearing Royal Mail up to face unfettered competition from April 2006, and have managed to turn losses of £1m a day into profits of £1m a day.

The organisation was hit by unofficial strikes last winter after disagreements between workers and management on working practices and pay, but relations have improved since then.

In April 2003, the Institute of Public Policy, a left-wing think tank, advised the government to privatise Royal Mail to allow it to respond faster to competition.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum here.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Latest jobs Jobs web feed


The Wall blogs

Back to top ^