Stamp prices could rise to fund Post Office pensions
Wednesday 02 July 1997
The full burden, which would come if Mr Brown removed the tax credit on dividends for institutional investors, would knock 10 per cent off the pounds 10bn value of the two Post Office funds. Richard Close, finance director, warned the organisation would have to raise its pension contributions. "The issue is the sheer size of our pension fund. It's the second or third largest in the UK," he said.
The Post Office yesterday reported record profits of pounds 577m for the year to the end of March, an increase of 37 per cent, and intensified its campaign for greater commercial freedom. The increase camefrom the 1p rise in the price of stamps last year, which raised pounds 130m. The Post Office paid pounds 285m of the profits to the Treasury, while a further pounds 216m would go in corporation tax.
The Post Office blamed a pounds 21m loss in its Parcelforce division last year on strikes at Royal Mail, which it said had put off new customers. It also announced the creation of 400 jobs in a pounds 10m telephone marketing centre in Sunderland. A further three call centres are planned by Subscription Services, the business which collects BBC licence fees.
Announcing his retirement as chairman, Sir Michael Heron warned the Government not to spend too long on its review of the Post Office's operations. "The Post Office has to be treated as more than a cash cow for Government. It's possible for Government to continue to benefit from the Post Office's profitability while offering more commercial freedom to compete with post offices from abroad."
In a submission to the Department of Trade and Industry the Post Office will urge for a fixed percentage of profits to be paid as a dividend to the Treasury each year, rather than a variable cash target. It will also ask for freedom from public spending and pay limits, and the ability to make acquisitions and form joint ventures. Though the DTI previously ruled out privatisation, Post Office sources suggested a partial share sale could be on the political agenda.
- 1 Scarlett Johansson new band 'already hit with legal complaint' from another The Singles
- 2 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 3 What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Husband and wife die holding hands within hours of each other after 67 years of marriage
Mohammed Emwazi: Nine things we know about Isis militant 'Jihadi John'
What color is The Dress, white and gold or blue and black? An eyewitness gives a definitive answer
'Jihadi John': Mohammed Emwazi – from British computer programmer to Isis executioner
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
This is what it's like to be dead, according to a guy who died for a bit
iJobs Money & Business
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...
£22,000 - £23,000: Beverley James: Are you looking for the opportunity to work...