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
- 2 Porn block in India: hundreds of sexual websites banned, internet outraged
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Gamers confess the worst things they've done in The Sims
Jackie Chan in second place in Forbes' Highest Paid Actors list after magazine includes actors working outside US movie industry
Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
Natalia Molchanova: World's most successful free-driver is missing and feared dead after disappearing in Mediterranean
Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks traffic on Dublin road
Dutch King Willem-Alexander declares the end of the welfare state
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
iJobs Money & Business
£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...
£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...
£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...