£9.8m pension deficit could 'swallow' Post

CARRYING on with the current States public sector pension scheme could end up swallowing Guernsey Post, its finance director has said.

The company has made a representation to the States pension review panel after its annual report for 2011/2012 showed the company's pension deficit rose from £6.2m. to £9.8m.

In the report, finance director Richard Hemans, pictured, said the rise was due to poor scheme investment returns and the poor performance of stock markets.

But he explained to the Guernsey Press that the current scheme was in any event regarded as a major risk to the business.

'It will end up swallowing the company if it carries on growing as it has done,' he said.