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Royal Mail - Save it - don't sell It PDF Print E-mail
Friday, 03 July 2009 09:08

Royal Mail - Save it - don't sell It

The Government wants to see big changes to the Royal Mail. But I am unconvinced.

A Bill, now before Parliament, will allow a private sector company to take a stake of around 30%.

Ministers say this is necessary to make the Royal Mail more efficient and more competitive. We certainly need more investment, but turning to the private sector for a solution is absolutely the wrong answer.

There has been talk about inviting TNT, the Dutch company, to become a partner. This company delivers first class letters in the Netherlands at nearly three times the price of Royal Mail.

Many European countries deliver on only 5 days a week, unlike our 6 day service. It is a myth that they are all models of efficiency and profitability.

The fact is the Royal Mail has been fighting off competition in the new liberalised postal market with one hand tied behind its back.

Private operators have been allowed to undercut the Royal Mail as a way of opening up the market in postal services to competition.Yet, ironically, Royal Mail postmen and women still deliver the post to everyone’s letterboxes - “the final mile.” That adds insult to injury.

I want to see the universal service continue with a letter going from John o’Groats to Lands End at the same price as one going from Brierfield to Barlick.

The Government is the sole shareholder in Royal Mail and can make the changes that are needed.

There is an issue with the pension fund deficit but the state took contribution holidays for over a decade.

People don’t want to see the part privatisation of the Royal Mail and neither do I.

I can’t support the Government on this one.

Last Updated ( Friday, 03 July 2009 15:01 )
 

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