Postcomm: Investment adds to our own efforts

Thursday, 18, May 2006 12:00

Postal regulator Postcomm today said the government's £1.75 billion investment in the Royal Mail added to its own efforts to safeguard the firm's pensions scheme and invest in new capital equipment.

A spokeswoman told politics.co.uk that Postcomm had recently introduced new pricing controls for Royal Mail, setting maximum stamp prices until 2010.

The new price structure allowed the company to use £320 million to pay off the pension fund, and £1.2 billion for new investment, on top of that committed by the government, she said.

The Royal Mail depended on three parties: the customers, the owners and Royal Mail itself, she explained, adding that now investment from the government and customers had been guaranteed, it was up to the firm to ensure the money was used effectively and efficiently.