Royal Mail to be privatised
By: Laura Nineham
14 October 2010
The details of exactly how the Royal Mail will be privatised will be announced later when the government publishes its Postal Services Bill, reports BBC News.
It's already known that the Post Office network won't be included in the sell-off, but other details such as whether the move will create new delivery, processing or driving jobs is yet to be revealed.
The Bill is expected to explain whether the government proposes the Royal Mail be sold to a private company or companies, or in a public share sale instead.
However, the main postal workers' union is against privatisation because they fear it will lead to higher prices for consumer and job losses for staff.
According to an earlier report by BBC News, business secretary Vince Cable made the decision to privatise the Royal Mail after an independent report said the outlook of the postal service had deteriorated.
"There are matters we need to resolve further down the line," said Mr Cable. "But we need to get on with the legislation, which is urgently needed, because the financial position is deteriorating. Royal Mail is facing a combination of potentially lethal challenges - falling mail volumes, low investment, not enough efficiency and a dire pension position."
However the Royal Mail welcomed the report. saying that they need access to capital in order to compete in a tough and shrinking market and believe the plans will help them to do so.
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