“Mr Carmichael gave his full backing to coalition government’s controversial plans for the reform of the company. Business secretary Vince Cable outlined new protections which it is claimed will make it more difficult for governments to downgrade postal services in future, and announced that the Post Office network would receive an additional £1.34 billion in state funding over the next five years.
Earlier this week Mr Carmichael met the new chief executive of Royal Mail, Moya Greene, and invited her to visit postal workers in the Northern Isles.
Mr Carmichael said: “There is no getting away from the parlous state of the Royal Mail. The seeds of the present conditions were sown in the early years of this decade when the letter post market was opened up to full competition in a way that left Royal Mail at a huge commercial disadvantage. As a result they lost business from banks, credit card companies and other large scale mail users.”