RMH(08)9TH
RMH08/133 - 150
ROYAL MAIL HOLDINGS plc
(Company no. 4074919)
Minutes of the meeting of the Board of Directors
held at 148 Old Street, London, on 8 October 2008
Present: Allan Leighton
Chairman
Andrew Carr-Locke
Non-Executive Director
Alan Cook
Managing Director, Post Office Ltd
Adam Crozier
Group Chief Executive
Ian Duncan
Group Finance Director
Richard Handover
Non-Executive Director
Mark Higson
Managing Director, Royal Mail Letters
Baroness Prosser
Non-Executive Director
Helen Weir
Non-Executive Director (for RMH08/139-150)
In attendance:
Jonathan Evans
Company Secretary
Also present:
Rico Back
Chief Executive, GLS
Brian Goggin
Group Chief Executive, Bank of Ireland, for RMH08/138
Des Crowley
Chief Executive UK Financial Services, Bank of Ireland, for
RMH08/138
Martin Gafsen
Group Property Director, for RMH08/142
Jane Newell
Chair, Royal Mail Pensions Trustees Ltd, for RMH08/143
Gerry Degaute
Chief Executive, Royal Mail Pensions Trustees Ltd, for
RMH08/143
Alex Smith
Commercial Director, Royal Mail Letters, for RMH08/144
Stephen Agar
Managing Director, Wholesale, for RMH08/144
Luisa Fulci
Director of Marketing Services, Royal Mail Letters, for
RMH08/144
Frank Schinella
Finance Director, Royal Mail Letters, for RMH08/145
RMH08/133
MINUTES OF PREVIOUS MEETING – RMH(08)8TH
(a)
The
Board
approved the minutes of the meeting held on 11
September 2008.
RMH08/134
MATTERS ARISING – RMH(08)77
(a)
The
Board
noted the status report.
RMH08/135
OTHER MINUTES
(a)
The
Board
noted the minutes of the meetings of:
• the Group Executive Team on 17 July 2008
• the Audit and Risk Committee on 3 September 2008.
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RMH08/136
REPORTS OF CHAIRS OF BOARD COMMITTEES
(a)
Nomination Committee:
[Information Removed]
(b)
the search for a new Group HR director continued, and a short
list was being compiled for Adam Crozier and the Committee
to interview;
(c)
Remuneration Committee:
[Information Removed]
RMH08/137
INDEPENDENT REVIEW OF THE POSTAL SECTOR
(a)
Adam Crozier updated the Board on the current state of the
Review.
[Information Removed]
RMH08/138
BANK OF IRELAND – RMH(08)78
(a)
Secretary’s note: the minutes of this item have been recorded
separately.
RMH08/139
FINANCE DIRECTOR’S REPORT – RMH(08)79
(a)
The
Board
noted the report for period 5, and the flash results
for period 6.
[Information Removed]
RMH08/140
HALF-YEAR TRADING STATEMENT – RMH(08)80
(a) The
Board
noted Ian Duncan’s paper, which sought approval
for the proposed process for approving the 2008-09 half year
results;
(b) the
Board:
• noted the draft results as set out earlier in the Finance
Director’s report to the meeting;
• agreed the proposed process and timetable for approving
the final results;
• delegated authority to the Board Accounts Sub
Committee, comprising any three of Allan Leighton, Adam
Crozier, Ian Duncan and Helen Weir, to approve the Ernst
& Young engagement letter and to finalise, approve and
publish the Trading Statement for 2008-09.
RMH08/141
PROJECT ARCHER: CONSOLIDATION OF DELIVERY
UNITS IN WEST LONDON – RMH(08)81
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(a) The
Board
noted Mark Higson’s paper, which sought approval
for a two-phased consolidation of six Delivery Offices (DOs) in
West London into a single modern and efficient facility at
Premier Park, NW10. The full project was driven by the need
to vacate some existing sites and the opportunity to release
disposal value of some £34million from other sites, whilst
providing a fit-for-purpose new facility. The project also
provided the opportunity to trial different delivery methods
including zero emission vehicles;
[Information Removed]
RMH08/142
PROJECT NOBLE: ADMINISTRATIVE OFFICES
STRATEGY – RMH(08)88
(a)
The
Board
noted Adam Crozier’s paper, which updated the
strategy agreed in principle at the September Board to a
rationalisation of the administrative estate, to provide separate
accommodation for each of the Group companies and Group
head office, thereby facilitating their own individual ways of
working. The paper sought agreement to a revised proposal
that took into account the Board’s views at the September
meeting, and to acquiring space for a new Group head office
in premises at 100 Victoria Embankment in London;
(b)
Adam Crozier explained the analysis that had been carried out
since the previous meeting. A further rigorous examination
had been carried out of the numbers of head office personnel
it was necessary to be located in the new building, and by
using space in other buildings to house people who worked
predominantly with business units, it had proved possible to
reduce the required new floor space. This also considerably
lowered the incremental cost of the project compared with the
base option;
(c)
the Board accepted that the concerns raised at the previous
meeting had all been addressed, and therefore:
• agreed the revised administrative office strategy set out in
the paper
• agreed the proposed move of the head office to 100
Victoria Embankment; and
[Information Removed]
RMH08/143
ROYAL MAIL PENSIONS PLAN ANNUAL REPORT 2007/08
– RMH(08)82
(a) The
Board
noted the RMPP annual report from Jane Newell,
and invited her and Gerry Degaute to make their presentation
to the Board;
[Information Removed]
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RMH08/144
LETTER TARIFF STRATEGY – RMH(08)83, 83(a) and (b)
[Information Removed]
RMH08/145
STRATEGIC PLAN REVIEW – RMH(08)84
(a) The
Board
noted the draft Letters business plan, submitted to
Postcomm in September. Mark Higson presented to the
Board the highlights of the plan, and explained the material
differences between the plan and the Group strategic plan
approved by the Board in April 2008. Ian Duncan also gave
an overview presentation of updates of the strategic plans of
the other business units and the Group as a whole;
[Information Removed]
RMH08/146
EXECUTIVE DIRECTORS’ REPORTS
(a)
The
Board
noted the reports.
RMH08/147
TREASURY REPORT – RMH(08)85
(a)
The
Board
noted the paper.
RMH08/148
REGULATION REPORT – RMH(08)86
(a)
The
Board
noted the paper.
RMH08/149
COMPANY SECRETARY’S REPORT – RMH(08)87
(a)
The
Board
noted the report.
RMH08/150
CLOSE
(a)
In the absence of any further business, the Chairman closed
the meeting. The next scheduled meeting of the Board was
on 5 November 2008, at 148 Old Street, London.
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