Royal Mail Shafted By EU

Shackled by EU rules, Royal Mail staggers from shambles to fiasco - Telegraph. Jeff Randall tells the truth about the shambles of Royal Mail, pointing out the decisive role of the EU in it all.

At that time, we still had two deliveries a day, Sunday collections and a national network of post offices. But the business was about to be hit with a sledgehammer from Europe in the form of competition directives, which forced the British government to open up the UK postal market to EU rivals. The new rules took effect in January 2003 (for items weighing more than 100 grams) and January 2006 (50 grams), since when the effort of providing the loss-making universal service while giving up profitable operations to foreign "cherry-pickers" has exacerbated Royal Mail's self-inflicted wounds.

In its eagerness to suck up to Brussels, the Government has created for itself not so much a headache, more an incurable migraine. For although Royal Mail has slimmed down its payroll, eliminated some traditional services and battled to drag the militant element of its workforce out of the Stone Age, it needs to run at a speed hitherto unachieved simply to stand still.

The option for government of increasing subsidies to Royal Mail and the Post Office network as necessary social services – in much the same way that we have poured extra money into schools and hospitals – has been removed by the EU, which has the power to decide how much state aid is allowed.

That's the kind of reporting you won't read in the Guardian or the Observer or find mentioned in the broadcast media - particularly the BBC.