New Royal Mail owner vows to keep six-day letter deliveries

The new owner of Royal Mail has vowed to keep delivering letters six days a week in an attempt to quash concerns that the service could be reduced.

Daniel Kretinsky, the Czech billionaire who is buying Royal Mail’s parent company International Distribution Services (IDS) for £3.6bn, said he would not walk away from the six-day delivery requirement once the takeover completes.

Mr Kretinsky told the BBC on Tuesday that he would not be cutting the service, saying: “As long as I’m alive, I completely exclude this.”

Under the Universal Service Obligation (USO), Royal Mail must deliver letters from Monday to Saturday. However, there have been questions over whether this could be replaced with a five or even three-day service.

Postal regulator Ofcom set out proposals to overhaul the USO earlier this year, suggesting the requirements could be reduced. They have not been updated since 2011, sparking criticism that they are no longer fit for the modern age and the dominance of email.

Rishi Sunak had ruled out making changes when he was prime minister. However, Sir Keir Starmer at the time suggested that a Labour government would be more open to an overhaul, saying he would “reflect” on Ofcom’s proposals and take them on board.

It is the latest attempt by the Czech tycoon to allay concerns over the deal, which is facing mounting scrutiny.

The Government has launched a national security investigation into the takeover, which would mark the first time that the Royal Mail would pass into private hands in its 508-year history.

It would also be the first time that any country’s postal service would be controlled by a foreign owner.

As part of efforts to quash fears over the deal, Mr Kretinsky has also pledged to protect the Royal Mail brand and keep the company’s headquarters and tax base in the UK.

The Telegraph revealed over the weekend that he is also plotting to bolster the parcel business, with plans to slash prices and roll out a network of parcel lockers in a push to take on Amazon.

EP Group has been holding talks with union bosses about a profit-sharing scheme for Royal Mail in which employees would be handed bonuses if the company meets financial and delivery targets.

On Tuesday, Mr Kretinsky revealed that he would be willing to share profits with employees, but ruled out separate proposals to give employees a stake in Royal Mail.

The Communications Workers Union has previously suggested that Mr Kretinsky could consider giving the workforce a shareholding in Royal Mail.

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