• News Feeds
Page last updated at 09:16 GMT, Monday, 19 March 2012

Royal Mail 'pension albatross had to go'

Advertisement

The Chancellor George Osborne is expected to announce in his Budget this week that the government will take responsibility for all of Royal Mail's pensions, removing one of the biggest obstacles to privatisation of the company.

Richard Hooper, who published a government report on the future of British Postal Services in 2010, said that the modernisation of Royal Mail was key to his previous report.

He said that there needed to be a removal of the "albatross of the pension deficit" as he recommended in his report.

"There is no question that if the Royal Mail fully modernises, which means cutting out a huge amount of cost because of the falling level of letters" then it can be a sustainable business, he said.

He went on to say that the internet is bringing people to online retailing where "the Royal Mail is brilliantly positioned" to deliver shopping services.


Get in touch with Today via email , Twitter or Facebook or text us on 84844.

SEE ALSO

Story Tools

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific