Hooper plans to privatise Royal Mail by back door, warns CWU

Post by **TrueBlueTerrier** » 20 Sep 2008, 13:42

http://www.tribunemagazine.co.uk/2008/0 ... warns-cwu/

by René Lavanchy

ROYAL MAIL will be earmarked for privatisation through the back door of a joint venture with a private company when a Government-commissioned inquiry reports this autumn, the Communication Workers’ Union warned this week.

Union officials, who have been in regular contact with the review panel, told Tribune that there was a “very strong likelihood” that they would recommend liberalising rules on the issue of Royal Mail shares, so that it could enter into a joint venture with a partner such as private mail firm TNT or Deutsche Post.

Such a move would allow the Government to privatise a large part of Royal Mail’s operation without parliamentary approval, unlike a full-scale privatisation.

Postal regulator Postcomm has already recommended some form of joint venture to Richard Hooper, who chairs the review. The union will be campaigning for a publicly-owned Royal Mail at the Labour Party conference next week.

A CWU spokesperson said: “Our take on Hooper is that he’s liable to be much more influenced by Postcomm than the CWU and public concern… We think there’s a very strong likelihood of joint venture.”

“This would almost certainly involve a break-up of Royal Mail, with the counter services being retained by the public sector, but the profit making parts going to the private sector.”

If the Government accepts such a report, it will break the commitment it agreed to after Labour’s National Policy Forum this year to a “wholly publicly owned, integrated Royal Mail group”.

An interim report by the Hooper review in May warned that Royal Mail’s worsening finances posed a “substantial threat” to the universal service obligation, under which it delivers to all addresses at regulated prices. However, the CWU and Postcomm differ violently on how to make it sustainable.

Royal Mail is responsible for almost all deliveries within the “final mile”, the least profitable part of the business.

The CWU says that access fees – which private companies pay in order to hand over their mail for final mile delivery – are set artificially low by

Postcomm.

Postcomm has told the Hooper team that further liberalisation of the postal industry is need to protect the service. While they believe in making access fees fairer, they also call for Royal Mail to start paying VAT, from which it is currently exempt.

Such changes, they believe, could lead to private companies seeking to do business across all postal services, including the final mile.

Another CWU official who has met the Hooper team said: “Having accepted the analysis that competition hasn’t really worked, what do they propose to do about that? They don’t propose a period of reflection, but if anything to take competition forward.”

He added that that review body had ‘put down markers’ indicating their views: “One said, ‘Why wouldn’t you want a joint venture?’” and said the review was acting beyond its remit in considering public-private partnership for Royal Mail.

But a spokesperson for the Hooper team denied this: “In determining how you maintain a universal service, that discussion has to be had.”

They also said that the review was not likely to recommend reducing the universal service, over which the CWU has voiced concern.

Big Daz · Post by **Big Daz** » 20 Sep 2008, 14:56

This week will be the most exciting week in british politics for a long time.

Me thinks the shi* will hit the fan big time!

k979aaa · Post by **k979aaa** » 20 Sep 2008, 22:49

What the hell is the point of new uniform's if TNT are too take over!. I BET THIS C*NT :cfo C*N'T WAIT!.

BELIAL · Post by **BELIAL** » 20 Sep 2008, 23:52

Correct me if I'm wrong, but was this not the very review our Billy and others were very keen on during last years dispute?
Seem to recall our leadership claiming that getting new labour to honor it's pledge to hold this review was a massive success , indeed a prime example of why we should continue to fund them.
Candy from a baby, you can fool some of the people all of the time

LDV 350 · Post by **LDV 350** » 21 Sep 2008, 08:52

In all likelyhood we will be split up and privatised Gordon Brown needs the money for his election sweetners, So the counters get retained and the profitable parts sold off, what about the delivery side of things we are always being told that we are not profitable etc, so will delivery be retained or sold off?
p,s i know you dont have a crystal ball just wanted your thoughts

Big Daz · Post by **Big Daz** » 21 Sep 2008, 09:03

I will have a bet with you all that we stay 100% publicy owned and fully intergrated.

Night Tonic · Post by **Night Tonic** » 21 Sep 2008, 09:08

Don't consider being a racing tipster as a new career then.

axeman · Post by **axeman** » 21 Sep 2008, 09:13

Could be worse nighty old 'chum' he could be a forcaster for royal fail ...guestimating the massaged figgures

Post by **TrueBlueTerrier** » 21 Sep 2008, 09:18

I think to be honest that Royal Mail Letters will consist of collections and deliveries so we will be the cap at both ends of the pipeline, perhaps as a public service but more likely being paid by the Access Companies to keep the USO going, and surviving on a shoe string with occasional loans/bungs from Central Government. All the other stuff in between will be sold off piece meal as sop to competition.

This could mean a single letter following this route.

1. Letter for London Posted in Scottish RM Box at 5:00pm Monday
2. Collected by RM Van and taken to local DO during only collection from that box at 4.30pm Tuesday
3. Dispatched to MC run by DHL that they have a contract with (might not be the closest but will be cheapest).
4. Sorted and dispatched to Mail(UK) Mail Centre Super Hub on outskirts of London by Royal Mail overnight trunker
5. Sorted again and kept awaiting arrival of first Royal Mail van.
6. Taken to local DOs Hub for walk sequening.
7. Taken to Satellite offices ready for prepping.
8. Delivery commences 12.00 by 2 posties working from van.
9. Letter is for Last DP which is reached at 5.pm Wednesday

3 days (or 48 Hours) for a 1st class letter - I can see it sooner rather than later as well.

Night Tonic · Post by **Night Tonic** » 21 Sep 2008, 10:15

Sell it off - might as well.

pickaname · Post by **pickaname** » 21 Sep 2008, 12:23

Night Tonic wrote:Sell it off - might as well.

Who would want it? Its virtually bankrupt and has massive deficits. It makes massive losses year on year and its staff are overpaid and refuse to do more work for less

You'd have to be nuts to even think about trying to polish this stinking turd...

Phantom · Post by **Phantom** » 21 Sep 2008, 13:50

Night Tonic wrote:Sell it off - might as well.

That would make it better would it? solve all problems? i don't think so, thefts and cheap labour may increase though, lets hope it does if it gets sold off

BELIAL · Post by **BELIAL** » 21 Sep 2008, 14:07

pickaname wrote:
Night Tonic wrote:Sell it off - might as well.
Who would want it? Its virtually bankrupt and has massive deficits. It makes massive losses year on year and its staff are overpaid and refuse to do more work for less

You'd have to be nuts to even think about trying to polish this stinking turd...

Your description makes RM sound like an international Finance Bank if you keep saying that RM will end up being nationalized by the US Fed Reserve

k979aaa · Post by **k979aaa** » 21 Sep 2008, 15:13

Night Tonic wrote:Sell it off - might as well.

Shock NT want's his share's as well as these two :lfo & :cfo but NT you will not get as meny share's as them!.

Night Tonic · Post by **Night Tonic** » 21 Sep 2008, 17:06

As they say, I'm alright jack.