UK Politics

Liberal Democratic Party: Cable: My plan to put Royal Mail and Post Office on a stable footing

Press Release   •   Oct 14, 2010 12:30 BST

“Royal Mail and the Post Office are cornerstones of our society. My policy is to put them on a stable footing for the future."

The Coalition Government has today put plans before Parliament to protect two cornerstones of British life – the Royal Mail and the Post Office.

The Government recognises that it is the workforce that will really turn Royal Mail around – and they should share in the company's future success with the largest employee share scheme of any privatisation.

The Post Offices will not be for sale and there will be no further programme of closures. Innovative proposals could see Post Office Ltd turned into a mutual, giving power to staff, sub postmasters and communities.

Liberal Democrat Secretary of State for Business, Innovation and Skills Vince Cable today published the Coalition Government plans.

Commenting, Vince Cable said:

“Royal Mail and the Post Office are cornerstones of our society. My policy is to put them on a stable footing for the future.

“Royal Mail is in a difficult position - there is no hiding from the facts: mail volumes falling; a multi billion pound pension deficit; less efficiency than its competitors and an urgent need for more capital at a time when there are huge constraints on the public purse.

“This is an important package. It will secure the services that consumers and businesses rely on. It will give employees a stable company to work for, shares in the future of the business and the secure pension they deserve. It will remove the risk to taxpayers of an expensive bail out.

“The Post Office is a separate business. It is not for sale and there will be no further programme of closures. We will break the cycle of declining visitor numbers through new ideas and new services to win back customers.”