The UK Government will be helpless to prevent huge job losses and a looming pensions disaster when the Royal Mail is privatised, due to EU regulation

Paul Nuttall MEP, UKIP Deputy Leader points out that Westminster will be hamstrung by the same EU regulations that forced it into privatisation.

“It was of course three successive EU Postal Services Directives that created this mess, and under the same law the Government will be banned from giving the Royal Mail any state aid if it catastrophically fails.

“The Postal Services Directive made it clear that the market for mail delivery had to be opened up to competition. As a result, the more profitable services such as business mail were forced to compete with cheaper foreign competitors while Royal Mail was lumbered with the costly hand-delivery and sorting processes. On top of that, as life has moved progressively online we are sending fewer and fewer letters. The Royal Mail was doomed.

“Now the final nail is in the coffin and the Royal Mail will become fully privatised, it’s going to really struggle to compete in the market place. In order to survive there will have to be closures. There will have to be job losses. These employees’ shares that are being championed by the Prime Minister will be completely and utterly worthless. But under EU state aid rules the UK Government will be strictly forbidden from helping the Royal Mail with taxpayers’ money. It will also be forbidden to help plug the £9 billion pension pot deficit.

“We will be left with a completely destroyed Royal Mail, once a proud British institution that did so much more than just deliver letters. We can thank the EU for that, and we can also thank the EU when Westminster finally wakes up and realises there’s a disaster in the post.”