Royal Mail privatisation plans in disarray

Lord Mandelson’s plans for the part-privatisation of Royal Mail are in "disarray" after the chief executive of Royal Mail launched an attack on TNT, the Dutch company which is front-runner to take a stake in Royal Mail.

Adam Crozier, Royal Mail’s chief executive, accuses TNT of poaching customers from the Royal Mail’s profitable European parcels division, and has written to Lord Mandelson’s department demanding the UK government take action to stop TNT from further "damaging" its business.

SNP Postal Affairs spokesperson Mike Weir MP said:

"Lord Mandelson’s privatisation plans are in complete disarray.

"First unions and Labour MPs attack the government, and now the Royal Mail is at loggerheads with the company vying to buy into the business.

"Adam Crozier’s accusations are extremely serious, and underline precisely why privatisation of Royal Mail is such a bad idea.

"Privatisation would spell the beginning of the end for Royal Mail, and open the door to job losses, service cuts and a deterioration in the working conditions of postal workers.

"A private partner will only be concerned with profit, and Royal Mail must not loose the social focus which is essential for rural areas."

Note:

Royal Mail chief executive Adam Crozier accuses TNT's chief executive, Peter Bakker, of trying to poach customers from the Royal Mail's profitable European parcels subsidiary, General Logistics Service (GLS). In an angry email sent to the government last week, Crozier claims that TNT had told some of GLS's biggest clients that TNT was about to buy GLS, even though the business is not part of the Royal Mail sell-off.

The news follows revelations over the weekend that TNT, Peter Mandelson’s preferred partner in the part privatisation of Royal Mail, has been forced to pay back tens of millions of pounds in unpaid tax after its staff had acted illegally.