Royal Mail needs part-privatisation

10.55.13am UTC (GMT +0000) Thu 18th May 2006

Commenting on the Government's £1.75 billion rescue package for the Post Office, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "Labour should not pick the pocket of the ordinary taxpayer to fund the substantial investment that is needed in the Post Office.

"A part-privatisation would enable the Royal Mail to access private capital markets to borrow more than £2bn if they so desired and rejuvenate the Post Office network. There is no reason why taxpayers should be forced to foot the bill.

"By taking a pensions holiday when the market was performing well the Government dug its own grave and landed the mail network with a deficit of £5 billion."