Royal Mail monopoly cut back
Tuesday 11 May 1999
The reduction in the monopoly cut-off point from the present limit of pounds 1 is due to be unveiled in a government White Paper in the next few weeks, along with details of a tough new regulatory regime to police the Post Office.
In return, the Post Office will get vastly increased commercial freedom to strike joint ventures with the private sector and mount takeovers of foreign postal businesses.
A cut in the Royal Mail monopoly from pounds 1 to 50p would open up 10 per cent of its business to competition, but Post Office executives believe this proportion could grow as rival operators achieve greater economies of scale.
John Roberts, the Post Office's chief executive, said it was important that the White Paper made clear that the advantages of commercial freedom would not be wiped out by overly harsh regulation of the business.
He said the Post Office was eyeing half a dozen overseas acquisitions following its pounds 300m takeover of German Parcel and the German express carrier, Der Kurier.
Mr Roberts also called on the Government not to scrap the pounds 1.5bn Pathway project to automate social security benefit payments through Post Office Counters.
The national roll-out of the Pathway system, developed by ICL, is due to start this summer but there are fears that the project will be scrapped because of cost overruns.
Post Office executives fear that if the Pathway project is cancelled, the survival of thousands of rural sub-post offices could be threatened, and the organisation's plans to automate its counters division could be delayed by at least three years.
Pathway to hell, page 19
- 1 Germanwings crash: Police make 'significant discovery' at home of co-pilot Andreas Lubitz
- 2 Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
- 3 Zayn Malik already working on solo material, just days after quitting One Direction
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Zayn Malik gives first interview since quitting One Direction: 'I've never felt more in control of my life'
Germanwings crash: Police make 'significant discovery' at home of co-pilot Andreas Lubitz
Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
Saudi Arabia says it won't rule out building nuclear weapons
#FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash live: Andreas Guenter Lubitz intentionally crashed flight 9525 into the Alps in act of mass murder and suicide – latest
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...