Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 360 - 379)

MONDAY 25 MARCH 2002

MR JOHN ROBERTS CBE, MARISA CASSONI AND MR STUART SWEETMAN

Mr Bacon

  360. Mr Roberts, I will start with the question Mr Osborne was asking about numbers. You announced 30,000 redundancies just before Christmas, is that correct?
  (Mr Roberts) Yes, up to 30,000 redundancies.

  361. You have just announced 15,000 today.
  (Mr Roberts) Of that 30,000.

  362. Of that 30,000?
  (Mr Roberts) Yes.

  363. Just to be clear. I know this is in your company statement saying you have to cut £1.2 billion out of your costs, that is your aim. How much of that cut of £1.2 billion costs is accounted for by the redundancy statements you have made to date?
  (Mr Roberts) Just under £500 million.

  364. You have got £700 million to go?
  (Mr Roberts) Yes.

  365. That £700 million will entail further announcements of further redundancies?
  (Mr Roberts) Yes, it could well do.

  366. You said could well do.
  (Mr Roberts) Should well do. It is within this 30,000 figure. I would expect it to be.

  367. The BBC website says Consignia is expected to announce it will cut up to 40,000 jobs over the next three years, is that correct?
  (Mr Roberts) It is not a figure that we have used, as I said earlier on.

  368. It is not correct?
  (Mr Roberts) It is not correct.

  369. It is not correct?
  (Mr Roberts) It is incorrect as we sit here today because our best estimate is redundancies of up to 30,000.

  370. Okay. The 700 million of costs that you still have to take out which are not accounted for by redundancies that you have announced so far will involve how many further redundancies?
  (Mr Roberts) As far as we can see something like about another 15,000 but a lot of it depends on what happens with the trials of the new delivery system and if we go ahead with that.

  371. How many hours a day on average does a postman or woman work?
  (Mr Roberts) About eight hours a day.

  372. Most of them do eight hours a day?
  (Mr Roberts) Most of them do about eight hours a day.

  373. Can you say what has been your growth in revenue over the last five years?
  (Ms Cassoni) Over the last five years? Last year the growth in revenue was just about two and a half to three per cent.

  374. Over the last five years?
  (Ms Cassoni) I have not got it for the last five years. I can give it to you in real terms.

  375. I am just asking what were your revenues five years ago and what are they now?
  (Ms Cassoni) I have not got them for five years ago.[5]

  (Mr Roberts) Sorry, we have not got them.

  376. Do you know what your revenues are now?
  (Ms Cassoni) Yes.

  377. What are they?
  (Mr Roberts) Revenues at the moment are just under eight billion pounds.

  378. Under eight billion?
  (Mr Roberts) Eight billion.

  379. I read 8.4 billion somewhere, is that wrong? I do not know where I read it, is that incorrect?
  (Ms Cassoni) In total, they are about 8.4 billion.


5   Ev, Appendix 2, p 52. Back


 
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