BLOG - Royal Mail under siege

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Rivendell

In 1840 Rowland Hill persuaded the government to streamline mail delivery by eliminating complicated travel cost computations. Many government officials just didn't get it, but the people did. To send a letter by the Royal Mail you simply bought an adhesive stamp for a uniform charge at the post office. The money that was made on short distances covered the greater cost of delivering to remote areas of Britain. This brilliant system and much more is now under threat.

Brian Smalley explains, "If postal rates are set wisely to balance out the differences then Royal Mail will make a profit". But in the 1990s the EU forced the Royal Mail to allow European companies to compete in delivering mail. This was supposed to foster competition, but the private companies did not have to deliver mail to remote locations. No, only the Royal Mail has to do that. The private companies could "cherry pick" where they would deliver and for how much.

As a result the profits that the Royal Mail previously used to subsidize rural deliveries are no longer available. Because the Royal Mail is no longer making a profit, it has to receive government support. In other words, British taxpayers are now underwriting the Royal Mail so private, non-British companies can make a profit. Add to the cost of your stamps the stealth tax that is paying for a subsidy. Does this sound fair?

But oh, no! The EU cannot allow the government to “subsidizeâ€