Friday, May 15, 2009

Postal Union Accuses UK Government Of Wasting Money

29 April 2009 by David Lynch - ©


The Communication Workers Union today accused the UK government of 'misusing' public funds to pay for specialist advice in the run-up to a partial sale of state-owned postal operator, the Royal Mail.


The CWU says it has learnt that £3.6m has been spent on advice even before a sell-off has been agreed. The information was obtained via a Parliamentary Written Answer.


Billy Hayes, CWU general secretary, said:


"This is an outrageous misuse of public funds at a time when the government needs to be demonstrating responsible economic management.


"Spending millions on working out how to sell off Royal Mail before government has even decided whether this is going to happen is a waste of money.


"This money could have been used for employee pay or for funding new products, machinery or the pension deficit." he said.


The government was forced to climb down last year during a tendering process for the Post Office Card Account. It resulted in the government having to compensate rival bidders for costs accrued during the bidding process, The cost of the compensation has not been revealed

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