Royal Mail Sale Battle Heats Up
The battle over privatizing Royal Mail has heated up with various groups expressing strong support and opposition as the matter is set to go before Parliament.
On Thursday, a number of measures are expected to be proposed in House of Lords that would ultimately lead to partial privatization of the U.K. postal service, according to wire service reports.
In December, British Prime Minister Gordon Brown’s government said it may sell a stake in Royal Mail Group Plc to Dutch courier firm TNT NV, in a move that would tap investment needed to prepare the U.K.’s postal service for Europe-wide competition (Direct Newsline, Dec. 16).
On one hand, the Internet Small Business Association (ISBA) this week recommended that Royal Mail forge a minority partnership with a private company with a proven record in turning itself around. The group cited other European countries such as Denmark, where this has happened.
On the other side is the Communication Workers Union—the U.K. postal labor group which strongly opposes any privatization and has been lobbying to keep Royal Mail public.
In the past few weeks, a number of members of Parliament have jumped on the anti-privatization bandwagon.
Among reasons offered for privatization were a need for further heavy investment in automation and a 7 billion-pound pension deficit that has doubled to 7 billion pounds ($11 billion).
