The Royal Mail has today welcomed a government plan for reform of the post office network, which includes 2,500 closures.
The Royal Mail said, in view of today’s announcement by Trade and Industry Secretary Alistair Darling, there would be a three month local consultation period, and it would take “time to consider the details of the government’s announcement to understand fully the potential impact on the future of the Post Office”.
Darling’s proposals include an investment package worth up to £1.7bn, designed to preserve the national network of urban and rural branches.
The government said the closures had been forced by losses of £4m a week, up from £2m a year ago, and fewer people using the network of offices.
They are likely to begin next summer and will continue for 18 months, reducing the size of the network to about 11,760.
A Royal Mail spokesman said: “In the very short term, we will continue to discuss with our shareholder, the government the overall investment case which is needed to enable Royal Mail to:
· Facilitate the modernisation of the company so it can compete in an open and competitive market;
· Deal with the historic pension fund deficit in a way acceptable to the trustees of the pension fund and;
· Secure the future of the Post Office network.”
References: EGi News 14/12/06
