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| Version 2 | Version 3 |
|---|---|
| Mail pension deficit over £5.9bn | Mail pension deficit over £5.9bn |
| (10 minutes later) | |
| The Royal Mail pension fund deficit is "significantly larger" than the £5.9bn in the Hooper Review, according to its trustees, in a letter seen by BBC News. | |
| Current government proposals involve the bigger-than-expected shortfall being funded by taxpayers. | |
| In the letter the chair of trustees, Jane Newell, warns that the deficit is so big that the Pension Protection Fund would struggle to support it. | |
| She says that the part-sale of Royal Mail is the only way to save the fund. | |
| The government's proposals, based on the Hooper Review, are due to be introduced in Parliament on Thursday. | The government's proposals, based on the Hooper Review, are due to be introduced in Parliament on Thursday. |
| The deficit... is highly unlikely to be affordable by Royal Mail, with potentially devastating consequences Jane Newell | |
| Ministers want to sell a stake of about 30% to the private sector to help pay for the modernisation of the service. | Ministers want to sell a stake of about 30% to the private sector to help pay for the modernisation of the service. |
| The leaking of the letter this week may be seen as an attempt to assist the passage of the controversial legislation. | |
| 'Devastating consequences' | 'Devastating consequences' |
| BBC business editor Robert Peston describes the hole in the pension fund as shocking, especially as it is planned to be a liability for taxpayers. | BBC business editor Robert Peston describes the hole in the pension fund as shocking, especially as it is planned to be a liability for taxpayers. |
| Ms Newell warns that the pension deficit is "highly unlikely to be affordable by Royal Mail, with potentially devastating consequences". | Ms Newell warns that the pension deficit is "highly unlikely to be affordable by Royal Mail, with potentially devastating consequences". |
| She says that if the pension plan were to be wound up today, it "would not even be able to provide as much as 50% of members' benefits". | She says that if the pension plan were to be wound up today, it "would not even be able to provide as much as 50% of members' benefits". |
| The pension plan has 450,000 members. | The pension plan has 450,000 members. |
| The government's proposals face opposition from a large number of Labour MPs, with 139 signing a motion opposing a sell-off, and from unions who plan a protest on Tuesday. | The government's proposals face opposition from a large number of Labour MPs, with 139 signing a motion opposing a sell-off, and from unions who plan a protest on Tuesday. |
| But the Conservatives and Liberal Democrats have backed the move in principle. | But the Conservatives and Liberal Democrats have backed the move in principle. |
| 'Deeply unpopular' | 'Deeply unpopular' |
| In December, Business Secretary Lord Mandelson, to whom Ms Newell's letter is addressed, endorsed the recommendations of an independent report that called for a minority stake in the business to be sold off. | In December, Business Secretary Lord Mandelson, to whom Ms Newell's letter is addressed, endorsed the recommendations of an independent report that called for a minority stake in the business to be sold off. |
| He said Royal Mail could not survive in its current form, due to severe financial constraints and falling demand for sending letters, and needed fresh investment in technology to prosper. | He said Royal Mail could not survive in its current form, due to severe financial constraints and falling demand for sending letters, and needed fresh investment in technology to prosper. |
| He denies the plan amounts to a sell-off of the business, saying it will be a "partnership" that maintains Labour's commitment at the last election to keep Royal Mail in public ownership. | He denies the plan amounts to a sell-off of the business, saying it will be a "partnership" that maintains Labour's commitment at the last election to keep Royal Mail in public ownership. |
| But unions will stage a mass protest on Tuesday against the plans, which they say are "deeply unpopular". | But unions will stage a mass protest on Tuesday against the plans, which they say are "deeply unpopular". |
| "We urge the government to take responsible action and respond to the justified concerns of UK citizens who do not want to see this valuable public asset carved up," said Billy Hayes, general secretary of the CWU union. | "We urge the government to take responsible action and respond to the justified concerns of UK citizens who do not want to see this valuable public asset carved up," said Billy Hayes, general secretary of the CWU union. |
| Unions point to the fact that Royal Mail made a profit of £255m in the last nine months of 2008 and argue that it is healthy and can thrive in its current form. | Unions point to the fact that Royal Mail made a profit of £255m in the last nine months of 2008 and argue that it is healthy and can thrive in its current form. |
| The protest will come on the same day as Royal Mail bosses are questioned by MPs on their plans for the company. | The protest will come on the same day as Royal Mail bosses are questioned by MPs on their plans for the company. |
| The plans could potentially result in the largest backbench rebellion of Gordon Brown's premiership. | The plans could potentially result in the largest backbench rebellion of Gordon Brown's premiership. |
| Unless Labour rebels are persuaded to back the measures, the government may have to rely on opposition MPs' support to get them through. | Unless Labour rebels are persuaded to back the measures, the government may have to rely on opposition MPs' support to get them through. |