Cost cutting: Royal Mail owner IDS asks Ofcom to speed up review and allow it to introduce radical changes ‘urgently’
The boss of Royal Mail owner has criticized ministers and regulators for failing to reform the postal service.
International Distribution Services (IDS) chief executive Martin Seidenberg urged Ofcom to fast-track a review and allow it to “urgently” introduce sweeping changes. IDS is currently fighting a takeover bid from billionaire Daniel Kretinsky, co-owner of West Ham United.
In a presentation to investors, Seidenberg said: “We have been calling for reforms for over four years and a lack of action from the government and Ofcom has slowed Royal Mail’s transformation.”
Current rules mean the postal service must deliver letters nationwide for the same price, six days a week, costing up to £675m a year.
Royal Mail wants to reduce second class deliveries to every other day to cut costs, saying delays to the overhaul have held the company back.
But IDS still needs the Government and Ofcom to accept its proposals. Mr Seidenberg said: “We are calling on Ofcom to speed up its review and start consulting on the changes.”
