Secretary of State aims to protect the postal service
Summary
The Department for Business, Innovation and Skills (BIS) has outlined Government proposals to preserve the universal postal service in the report, 'Delivering for the Future: A Universal Mail Service and Community Post Offices in the Digital Age’ (Cm. 7946).
In the digital age, the two cornerstones of our society: Royal Mail and the Post Office are facing increasing pressure to stay afloat as the internet and email provides such instant access to effective communication.
Research by the BIS has shown that despite a peak in the traditional mail market in 2005 with 84 million items posted daily, over the next five years there is expected to be a decline of between 25% and 40%.
Posting letters and parcels is still an essential service and the Government wants the UK to have an efficient, world-class mail service which complements the online market by serving businesses and people direct to their doors.
The Government commits to:
- Safeguard the future of the universal postal service at uniform prices and service levels.
- Restructure the Royal Mail group to secure the futures of Royal Mail and the Post Office on a sustainable basis.
- Create opportunity for a mutually owned Post Office.
- Prevent Post Office closures.
- Make at least 10% of shares available to Royal Mail employees as part of the privatisation process.
- Wipe the historic Royal Mail pension deficit, and secure pensions of employees; past and present.
The report also discusses the Postal Services Bill which will provide the legislative framework to secure a sustainable future for the universal postal service.
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