Royal Mail 'fattened up for sale'
Royal Mail has been accused of cutting 6,500 post box collections to improve its bottom line ahead of privatisation.It was also revealed the postal service has brought forward final collection times at more than 4,000 post boxes over the year to the beginning of March, meaning customers have to post their letters earlier in the day.
The collection figures are not published as a matter of routine, but were disclosed after a Freedom of Information request by shadow postal affairs minister Ian Murray, who said he believed Royal Mail was cutting costs ahead of privatisation.
"They are trying to fatten up the coffers to make it sellable. Collections are being reduced while prices are increasing."
In the 12 months to March 2012 Royal Mail cut 9,689 collections from some post boxes, while adding 3,236 at others - resulting in a net loss of 6,453 collections. Figures also show the final collection times for 10,006 mail boxes were brought forward, while the times were extended for 5,719.
Royal Mail spokesman Heulyn Gwyn Davies said: "This is sensible ongoing business management which simply reflects changing mail volumes in specific locations." He said the number of post boxes in the Royal Mail network has increased by 48 over the last three years to 115,271 despite a decrease in mail volume, and added that the postal service makes 270,000 collections a day.
Mr Murray said he was worried the cuts to collections had not finished.
He said: "Cutting 6,000 collections is a significant chunk. They key questions is if the cuts have now stopped. We have not done analysis yet of where they have added the collections but I suspect it will be in urban areas where they have competition.
"There are only two options for selling - an IPO (initial public offering) to the public or a sale to a venture capitalist company. An IPO is unlikely in this financial climate so my real worry is the only people who could afford it would be a venture capitalist company.
"When you have a company that is difficult to sell, there is only one thing you can do which is cut costs."
Royal Mail spokesman Heulyn Gwyn Davies said: "This is sensible ongoing business management which simply reflects changing mail volumes in specific locations." He said the number of post boxes in the Royal Mail network has increased by 48 over the last three years to 115,271 despite a decrease in mail volume, and added that the postal service makes 270,000 collections a day.
Mr Murray said he was worried the cuts to collections had not finished.
He said: "Cutting 6,000 collections is a significant chunk. They key questions is if the cuts have now stopped. We have not done analysis yet of where they have added the collections but I suspect it will be in urban areas where they have competition.
"There are only two options for selling - an IPO (initial public offering) to the public or a sale to a venture capitalist company. An IPO is unlikely in this financial climate so my real worry is the only people who could afford it would be a venture capitalist company.
"When you have a company that is difficult to sell, there is only one thing you can do which is cut costs."
© 2013 Press Association