New Post Office report shows Action overdue - Öpik

12.00.00am UTC (GMT +0000) Tue 12th Dec 2006

Responding to the Public Accounts Committee report into the Postcomm and the quality of mail services, Lembit Öpik, leader of the Welsh Liberal Democrats today said that action on the future of the post office is long overdue.

Commenting, Lembit said

"This report highlights many problems facing the postal service. With attention focused on post office closures in Wales, we should not lose sight of Ministers' failure to back vital reforms of Royal Mail. Post offices provide essential services - especially in those rural communities that depend on them.

"A viable future for the post office network is inextricably linked to tough decisions on the future of Royal Mail. The Government must now make those difficult decisions."

Liberal Democrat Shadow Trade and Industry Secretary, Edward Davey, has urged ministers to take swift action to free up Royal Mail or see lower quality and mounting financial losses.

Commenting, Mr Davey said

"It's vital ministers use the statement expected this week on post offices to make long overdue decisions on the Royal Mail. By selling shares in Royal Mail, the Government could free the company from the dead hand of the Treasury while also generating cash to invest in the post office network.

"Giving Royal Mail employees shares in their own business would help deliver the improvements that will be necessary to beat off the new competition"

Ends / Diwedd

Notes:

Last May, ministers announced a package deal for Royal Mail, including access to capital for essential investment. This deal has yet to be agreed, despite months of wrangling between Royal Mail management and the DTI. Just as the competition is set to increase for Royal Mail, the Government has left the company's future uncertain, and have backed away from the tough decisions.