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The government confirmed that they no longer plan to part privatise Royal Mail. The turnaround is being attributed to opposition from unions and Labour MP's, and also due to poor market conditions. The government had planned to pay off Royal Mails £8 billion pension deficit with the sell off. The government now must look at alternative ideas to pay off the pension deficit and also look at plans to modernise the company. Royal Mail are planning a series of strikes held over three days later this month in a row over jobs and services. |
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In a recent interview Lord Mandelson admitted that plans to sell Royal Mail were being delayed partly to the Parliament summer break and partly due to the recession meaning that the company would be worth less than before. There had been speculation that the plan may be shelved due to lack of support from other MP's. However Mandelson also admitted that Royal Mails finances were at breaking point due to the £8 billion pension deficit. No date has been set for the relevant legislation to be introduced to allow for the sale. |
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Bernard Madoff has received the maximum sentence of 150 years. Madoff was behind what is believed to be the frauds biggest fraud which robbed investors of $65 billion (£40 billion). Madoff operated a Ponzi scam which is where he pays investors with money which is taken off other investors rather than real profits. Madoffs victims ranged from ordinary people to large corporations including HSBC and The Royal Bank of Scotland. It was the global recession which uncovered the massive scam as investors tried to withdraw funds and Madoff did not have the funds to cover this. Madoff will spend the rest of his life in prison. |
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Vodafone has refused to comment on reports that it is considering a bid for rival T-Mobile, which would mean Vodafone would become the UK's largest mobile phone provider. At present Vodafone has a 25% share market whereas T-Mobile has a 15% share. Earlier this year Vodafone announced a 53% drop in profits for the year ending March 2009 and T-Mobile announced a 21% drop in profits for the first quarter of 2009.
However one company with 40% market share would lead to competition questions, although mobile operators with similar market share already exist in other parts of Europe. |
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Royal Mail has issued an apology to its customers following CWU strike action in London. Royal Mail has stated that this is at odds with a CWU statement which appeared to support the Royal Mail plan to modernise the company. However within the last few months, CWU has waged a campaign opposing any change within the company. With volumes of mail decreasing by 10% every year and each 1% meaning that £70 million of revenue is lost, it is essential to the survival of Royal Mail that the company is adapted to meet modern day needs. |
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