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Bill to reveal Royal Mail privatisation plans

Postal Services Bill to be published on Wednesday.

Details of the government's plans to privatise the Royal Mail will be made public later on Wednesday when the Postal Services Bill is published.

Under the plans for privatisation, the Post Office network will not be part of the sell-off and will remain in the public sector along with the Royal Mails pension fund which has run into considerable deficit.

Royal Mail staff will also have the option to buy 10 per cent of the company's shares.

The crucial detail the bill is expected to cover is whether the government will sell it into private ownership or float it on the stock market instead.

Speaking to the Guardian, general secretary of the National Federation of SubPostmasters (NFSP), George Thomson said, "We remain to be convinced that removing the Post Office from Royal Mail is a sensible thing to do."

He added, "If it's struggling to survive as part of a large family it may find it impossible to survive as an orphan."

Royal Mail's proposed privatisation follows an independent review of Royal Mail's universal postal service undertaken by former deputy chairman of OfCom, Richard Hooper, which opined that the service would be unsustainable without bringing in private capital.