Financial Times FT.com

Long-awaited postal package unwrapped

By John Willman, Business Editor

Published: May 19 2006 03:00 | Last updated: May 19 2006 03:00

Why does Royal Mail want government finance?

To cope with competition in postal services where it lost its monopoly in January. It needs to invest up to £2bn in modern sorting equipment and needs government help to avoid closing loss-making post offices. On top of that, it has to pay off its £5.6bn pension deficit without putting up prices so much that it loses business to competitors.

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