24/01/2012

Royal Mail And Post Office Strike 10 Year Deal

The Royal Mail and the Post Office have struck a ten-year deal that will see the service continue.

Postal Affairs Minister Edward Davey announced the agreement on Tuesday as part of a progress update on Post Office policy. Mr Davey told Parliament that pledges given during the passage of the Postal Services Act of a new long-term deal between the Post Office and the Royal Mail would be reached before they separated and had been delivered with the signing of a ten year deal this month.

Mr Davey said the deal between the two companies gave "additional certainty" to subpostmasters across the UK and covers the full range of Royal Mail products available at post offices such as first and second class post, parcels, air mail, recorded and special deliveries.

Mr Davey said: “On coming to office, we found a demoralised Post Office, still losing substantial sums despite years of cutbacks and closures. So a year ago I set out a radical plan to transform Post Office’s future, with £1.34 billion of Government support and investment but without any closure programmes. Since then the Post Office has made good progress to become more competitive, building on its strengths.

“While it will take several years to turn round the Post Office’s finances, it’s increasingly clear the reforms are beginning to work. Concerns people had about the Post Office becoming independent from Royal Mail were always misplaced as that separation is part of our cure, but the ten year deal struck between Royal Mail and the Post Office will give subpostmasters and others greater confidence. Coupled with winning new contracts such as those with UKBA and Westminster Borough and the successful pilots of new operating models, the signs are extremely encouraging for the future of the Post Office.”

(DW)

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