Royal Mail Fails Royally

2.31.38pm UTC (GMT +0000) Thu 27th May 2004

Commenting on today's announcement from Royal Mail about profits of £220 million in 2003-04, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary,

said:

"The question most people will be asking themselves this morning is: is the closure of my local post office and my mail arriving in the afternoon connected to the Royal Mail Groups profits?

"The Royal Mail's profits are way below historic figures and seem to be built on the back of significant cost cutting. It's all well and good that the Royal Mail is, for the moment, back in the black but what the public are really concerned about is the standard of service they are receiving. The failure to hit delivery targets shows that the Royal Mail is failing it's customers. Trumpeting an upturn in it's fortune' will be offensive to the small business owner who is not receiving his cheques through the post, the pensioner who no longer has a Post Office in their community and the former employee that has paid the price for years of underinvestment.

"If Royal Mail is not allowed to make the necessary investments and does not improve labour relations its service will not improve. In the new era of competition its market share will be easy prey to competition. That cannot be good for the Company and the future of it's employees.

"Frankly the Post Office Network is going to hell in a handcart and Royal Mail could find its core business stolen from under its nose by German and Dutch competitors."