§ Mr. HepburnTo ask the Secretary of State for Trade and Industry what recent discussions she has had with Consignia about proposed changes to the delivery of the mail. [20355]
§ Mr. AlexanderThe Department has regular discussions with Consignia about a range of strategic issues facing the company. Consignia's proposals in relation to the delivery of mail are operational issues for the company provided that it remains within the terms of the licence issued to it by the Postal Services Commission.
§ Mr. HoyleTo ask the Secretary of State for Trade and Industry if she will make a statement on the financial position of Consignia for the current financial year; what resulting action she has asked the chairman to take; and what action she plans to take in respect of the chairman. [18921]
§ Mr. Alexander[holding answer 29 November 2001]: As shareholder we are obviously disappointed at the losses made by Consignia for the current financial year. It is clear that the company urgently needs to improve its performance. The company has been given the greater commercial freedom that the management and the unions had long wanted and its challenge is now to improve its performance.
The Government as owner of Consignia are actively taking steps to strengthen the company's management. Earlier this year a new Finance Director (Marisa Cassoni) 758W joined the Board; this was followed by the appointment of Allan Leighton to the non-executive team to take a special interest in the post office network; a Chief Executive of the new Post Office Ltd. (Consignia's network subsidiary) is currently being recruited. The appointee will be on the main Consignia Board.