We should all own a stake in the Post Office, minister says

[TrueBlueTerrier]

http://www.telegraph.co.uk/news/uknews/ ... -says.html" onclick="window.open(this.href);return false;

Millions of ordinary people could get the chance to own and run the national network of 11,500 Post Office branches, under new government plans.

Ministers will today set out proposals to turn Post Office Ltd into a John Lewis-style mutual, where sub-postmasters, communities and customers own and help to run the business.

As part of the Government’s sell-off of Royal Mail, the post office network will be kept in state hands, and eventually mutualised, though not until after the next general election, expected in 2015.

Ministers are proposing a three-tier ownership structure of the network, comprising the membership, a representative body and the network’s board of directors. This could see millions of post office customers joining the post office network, and sharing in any future profits.

These members, through a representative body, could then have a say in appointing Post Office Ltd’s board, agreeing its long-term strategy and sharing in its profits.
Ed Davey, the postal services minister, said he was attracted by the mutual model of the Co-Op, which has 5.8 million members, who shared £104 million in profits last year. He said: “The Post Office sits at the heart of our communities and I am determined to make sure it becomes a successful and profitable business. With this in mind we want to explore how those with an interest in the Post Office could be given a real say in how it is run.”

Around 370 Post Office branches or Crown Offices are directly managed by the central holding company Post Office Ltd. The remaining branches across the 11,500-branch network are managed on an agency basis, either by sub-postmasters or franchise partners such as Tesco, Spar or Londis.

Mr Davey said he wanted to see “sub-postmasters, employees, post office customers and local communities, have a real stake in the future of the Post Office”. The change will not happen until after the expected date of the general election in 2015, he said, because he wanted to ensure the loss-making network was on a sound financial footing first. New legislation is also required.

Mr Davey will use a speech at the Liberal Democrat party conference today to call on customers to boycott HSBC and Santander if the two banks continue to refuse to allow customers to access their current accounts through post office branches.

He will tell delegates that people should start a campaign against HSBC and Santander if they persist in refusing to follow other banks by allowing the access through branches. If that fails, he will say, then they should “switch account to another bank”.

The consultation on the plans to mutualise the Post Office closes on Dec 12, with ministers expected to issue their response next year.

[Lounge Lizard]

And a fat lot of good it did millions of people owning a stake in BT, British Gas, etc. thirty years ago.
What's different now ?

[RobertT]

And a fat lot of good it did millions of people owning a stake in BT, British Gas, etc. thirty years ago.
What's different now ?

I'm no expert but the British Gas share price at launch in 1986 was £1.35, it's current price is £12.54. So a £1,000 investment back then would now be worth nearly £8,300. Plus dividends along the way, I'd say that's pretty good!

[clashcityrocker]

I doubt very much if many people who bought shares in any of the utilities back in the day still have their shares now.
If I remember correctly a lot of people bought them with the aim of making a quick buck.
We don't all own a stake in BT etc.
We won't all own a stake in the Post Office no matter what the Minister says. His rich friends will though. And they won't run it for our benefit.

[Postman Plodd]

Yeah! Put it out our misery

[RobertT]

I doubt very much if many people who bought shares in any of the utilities back in the day still have their shares now.
If I remember correctly a lot of people bought them with the aim of making a quick buck.

More fool them!

We won't all own a stake in the Post Office no matter what the Minister says. His rich friends will though. And they won't run it for our benefit.

The minister mentions the Co-op as a model to follow. They have a membership who get points every time they use use Co-op services in a similar way to Tesco Clubcard members.
Members also get a share of the profits every year based on their number of points. So the more you use the Co-op, the bigger your share will be.

So if you do a lot of ebaying, for example, it has potential. But whether the Post Office will be profitable is obviously debatable!

[Lounge Lizard]

And a fat lot of good it did millions of people owning a stake in BT, British Gas, etc. thirty years ago.
What's different now ?

I'm no expert but the British Gas share price at launch in 1986 was £1.35, it's current price is £12.54. So a £1,000 investment back then would now be worth nearly £8,300. Plus dividends along the way, I'd say that's pretty good!

Okay, I worded it wrong, and meant a fat lot of good it has done society as a whole and customers in particular.
Never been the same since Thatcher's time, 'no such thing as society' and all that, and rioting again now the tories are back in power.

[subbie]

Ed Davy said >>The change will not happen until after the expected date of the general election in 2015, he said, because he wanted to ensure the loss-making network was on a sound financial footing first. <<<<

What he means is he wants the loss making part of the Network closed down!

What will replace it is the corner shop. Now you try and do your ebaying posting in the corner shop amongst all the other shoppers who just want quick convenience shopping. I predict a riot. Either the new PO service will get booted out or the C-store will close due to lack of shoppers.

This is a closure program by another name.

Subbie