UK Government's Role in the Postal Services Sector
The Government has a "dual role" with respect to the postal services sector. This being:
Role 1 - As the
guardian of the national interest and legislator
Role 2 - As the sole shareholder of Royal Mail Holdings plc
In its role as guardian and legislator the Government has:
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set the universal service obligation and the framework for a uniform tariff in legislation within the context of EU obligations;
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continued to provide support where necessary to maintain a viable nationwide network of post offices providing services of public and private interest;
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appointed an independent regulator (Postcomm) and established the principles of the regulatory regime;
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strengthened the role of the Consumer Council for Postal Services (Postwatch);
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laid down the social and environmental guidance to be followed by the Regulator;
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given itself the power to give universal service providers directions in respect of free services for the blind and partially sighted;
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has retained prime responsibility as the UK's postal representative within the European Union, World trade Organisation, Universal Postal Union and also for determining the legislative framework.
In its role as sole shareholder in Royal Mail Holdings plc (one ordinary share being held by the HM Treasury solicitor (as a nominee of HM Treasury) and 49,999 ordinary shares and one special share being held by the Secretary of State for Trade & Industry) the Government:
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appoints the Chairman and is responsible for approving Board members' appointments to the company, seeking to ensure access to the widest possible experience, internally and externally;
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determines the Board members' remuneration on the basis of advice from the remuneration committee of the Board;
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consults with the company on its strategic plan which includes key financial projections, an overview of strategy and an analysis of major risks;
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attends quarterly shareholder meetings with the company;
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approves borrowing for major acquisitions and also sets the guidelines on borrowing.
For further information on the Government's shareholder responsibilities in respect of its 100% shareholding please see the shareholder responsibilities page.
The Government does not get involved with the day-to-day operations of the Royal Mail Group and commercial matters which fall to the Group. Neither do we handle complaints or enquiries about services provided by the Group (this falls to the company first and then to the consumer council - Postwatch).