Doubling of profits for Britain's Royal Mail makes hard case for planned privatization
Government is facing a rebellion from more than 150 Labour MPs over the sale.
by Christine Buckley and Helen Power, The Times
May 15, 2009 — Unions seized on bumper profits at Royal Mail to argue that a doubling of profit, despite a continued fall in the number of letters being posted, should render controversial government plans to part privatise the company obsolete.
Dave Ward, deputy general secretary of the Communication Workers Union (CWU), said: "Today's results make it easy for the Government to back the pensions element of the Postal Services Bill and drop the privatisation part. The public, MPs and postal workers want the Government to see sense and keep the postal service public."
Royal Mail said its profits increased to £321 million last year compared with £162 million the previous year. However, that year was hit by some of the worst industrial action for two decades, which the organisation said cost it dearly.
However, Lord Mandelson, the Business Secretary, claimed that Royal Mail's results supported the Government's case for part-privatisation, adding that he would push ahead with politically fraught plans to auction off a stake...
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Royal Mail in privatisation row as profits hit £321m, by Christine Buckley and Helen Power, Times Online, March 15 2009
Posted: May 14, 2009
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