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Royal Mail is pressing the Government for a decision on its controversial plan for an employee share ownership scheme, amid increasing concern that ministers have shelved the idea.
Its calls come as the Government appears to be no longer backing either the plan or the leadership of the postal group by Allan Leighton.
It is believed that Mr Leighton has already threatened his resignation over the impasse, which has caused a £1.75 billion rescue package to remain in the Government’s banks, despite it being promised to Royal Mail last May.
Mr Leighton, whose contract as chairman runs to March 2008, says that the share plan is being obscured by Whitehall spin over his future.
He said: “It has been, ‘does the Government want me out?’ and ‘isn’t he difficult to deal with?’, but the fact is no one gives a hoot . . . It is the legacy that is very important. It isn’t how good it is when you are there but when you’ve left.”
Unions and other critics of the share plan are taking heart from the Government’s apparent unwillingness so far to endorse it and from the Department of Trade and Industry’s (DTI) statement that it had pushed Royal Mail into advertising for a deputy chairman who, it is believed, will be prepared to succeed Mr Leighton.
Royal Mail has submitted a business plan to the DTI that forecasts a high rate of return on government borrowing if the share ownership scheme is endorsed.
Mr Leighton has made the scheme an integral part of the financial restructuring, but he appeared to be losing confidence that the Government would carry it out.
The share scheme would give employees a 20 per cent stake in the business, worth about £5,000 per worker and valuing the entire holding at £1 billion.
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