Royal mail finances still uncertain - Kramer

6.05.09pm GMT Fri 9th Feb 2007

Responding to the Government's announcement on Royal Mail financing, Liberal Democrat Shadow Trade and Industry Secretary, Susan Kramer MP said:

"It has taken the Government nine months to concoct a solution they hope satisfies the Treasury, Labour backbenchers and the unions. In the meantime the company has been starved of investment with the future of the post office network remaining in doubt.

"Sadly, Royal Mail and our post offices face further serious challenges. The financing package leaves far too many unanswered questions and a possible investment shortfall.

"Royal Mail is hamstrung by restrictions, preventing it from competing fairly for customers. Four major contracts have been lost in the last year alone. The Government cannot afford to delay any longer."