ROYAL MAIL needs to modernise to become profitable and meet regulatory targets, the new industry regulator said yesterday as talks continued between the postal organisation and unions over changes to working practices.

Nigel Stapleton, chairman of Uniq, the convenience food company, and a former chairman of Reed Elsevier, the publishing group, and Cordiant, the advertising business, will take up his appointment as the second postal regulator in January.

He said: “It has already been acknowledged that there has to be — and that there will be — productivity improvements in the industry.”

Changes to working practices have prompted Royal Mail workers to stage a number of official and unofficial strikes recently, including the unofficial walkout across London and other parts of the country that ended this week. However, the new regulator said that he would seek to open up a dialogue with unions to help to ease tensions during any modernisation process.

Relations between the Communication Workers Union and Mr Stapleton’s predecessor, Graham Corbett, deteriorated after union officials, concerned about his enthusiasm to champion competition in the industry, called for his resignation.

They argued that Mr Corbett’s proposals would jeopardise the universal service obligation — Royal Mail’s duty to deliver post anywhere in the country at the same price.

Mr Stapleton also put the management of Royal Mail on notice that he would be tough: He said: “You need to be a good listener, but also take a robust position. Graham was not a pushover and I am not a pushover.”

He denied suggestions that he would be adopt a lighter regulatory approach than his predecessor, who clashed with management and the Government, Royal Mail’s sole shareholder, over issues of competition and pricing.

“I am strongly in favour of competition, and the regulator’s role is independent from the Government,” he said.

“I will have the same relationship with them as Graham did. Sometimes we will agree and sometimes we won’t.”

Mr Stapleton was a surprise choice for the post after the Department of Trade and Industry had earlier indicated that George Bain, the former head of the Low Pay Commission and head of the review of the fire service, had the qualities that were being sought.

Mr Bain’s name and that of Bill Morris, the former T&G General Secretary, had been touted to interested parties by headhunters, although Mr Morris had denied that he wanted the job.

Mr Stapleton will take over after the last major plank of regulation has been put into place.

A final proposal on how much Royal Mail can charge its rivals to use its infrastructure is expected before Christmas.