LONDON, May 7 (UPI) -- Mail service in Britain is in a crisis that could jeopardize the nationwide postal service, a government report on the Royal Mail said Wednesday.
The commission appointed by Business Secretary John Hutton concluded the Royal Mail was still bogged down financially, and the private sector had not picked up the slack for public or small businesses.
"There is now a substantial threat to Royal Mail's financial stability and, therefore, the universal service," said the report. "We have come to the conclusion, based on evidence submitted so far, that the status quo is not tenable. There is a strong case for action."
The Times of London said the dour conclusions came after the Royal Mail received a massive government bailout. It noted that profits fell by a third last year at the same time the postal service struggled with a large pension obligation.
The newspaper said that Parliament was wary of making any wholesale changes to the Royal Mail. Liberal Democrats have proposed selling a stake in the agency to bring in needed cash for modernization.
