Government to blame for pension penury

Wednesday 18th March 2009, 8:00AM GMT.

INDUSTRY Post 2 LETTER: My Post Office pension is just under £6,000 after tax. The pension fund is £5.9 billion in debt due primarily to the government allowing Royal Mail to cease its contributions to the fund for 17 years – an offer not extended to the workforce.

For the last 10 years this government has allowed privateers to move in and cherry-pick the most lucrative sections of the postal business while preventing Royal Mail from increasing its prices to offset the loss.

Now it wants to “part privatise” Royal Mail – adding that the Government may take over the pension deficit if the workers agreed to such a move.

Part privatisation has been tried in Europe, where it resulted in higher prices and fewer services.

The Royal Mail pension is a public sector pension, ultimately backed by the tax payer – just like the pensions of politicians.

Their pension will, of course be at least 10 times higher than mine but you and I are obliged to guarantee that pension via our taxes and no-one suggests selling off part of the Government – how would we manage without them?

Bob Wydell

Oswestry

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