Yesterday in the House of Commons Business Secretary Vince Cable announced plans to give the Royal Mail the commercial freedom and access to capital that other large businesses enjoy so that it can continue to innovate and invest in a changing postal market.
Regardless of the ownership of Royal Mail, the public interest will continue to be protected through the regulatory regime Ofcom and through the universal service obligation which can only be changed by an Act of Parliament. This means the one price goes anywhere service, six days a week, will be protected by law.
Brecon and Radnorshire MP Roger Williams praised the move, commenting:
"The overarching objective is to protect the delivery of mail to each of the 29 million UK addresses, six days a week, for the same price. To ensure that this happens, the Royal Mail needs access to future private capital and commercial disciplines to be able to continue its modernisation programme and seize opportunities for growth.
"This is a real victory for the 150,000 that work for Royal Mail who will each receive an equal share of the new company of up to 10% for free and receive a 9% pay deal with assurances that the change in ownership will not trigger any change in their terms and conditions, meaning that they will be part of the biggest employee share scheme of any major privatisation.
"It is also important to remember that the Post Office is not for sale. Under the Postal Services Act 2011, the Post Office will remain in wholly public ownership with the sole exception of any future move to a mutual ownership structure. However the Royal Mail and the Post Office are natural partners and a long term commercial agreement between the Post Office and Royal Mail for the continued supply of services was signed in 2012."
"The Royal Mail can and will be a successful business in its own right, it should not have to compete for scarce public capital against public priorities such as schools and hospitals."