Direct mail industry supports Royal Mail privatisation plans

[TrueBlueTerrier]

http://www.printweek.com/business/news/ ... ion-plans/

The UK direct mail industry has thrown its weight behind Lord Mandelson's call for the partial privatisation of the Royal Mail, expecting it to be a positive move for the industry.

The call from the business secretary comes weeks before the government's review of the postal service.

The review, conducted by the former deputy chairman of Ofcom Richard Hooper, is widely expected to highlight the unsustainable nature of the current mailing model.

Gurdev Singh, managing director of direct mail printer Howitt, said: "Partial privatisation? I think it should be fully privatised. There needs to be drastic changes."

He added: "At the moment, it seems that Royal Mail is fighting with one arm stuck behind its back and I agree that maintaining the status quo is imply not an option."

Alex Walsh, head of postal affairs at the DMA, echoed his thoughts saying the association "would like to see an efficient, profitable Royal Mail and it has been questioned before whether this can happen in its current structure".

The postal regulator Postcomm earlier this year put its weight behind the partial privatisation of Royal Mail. It argued that access to private capital coupled with a stronger set of incentives were necessary to help it restructure and become more profitable.

Jude Whitford, operations director at Pepper Communications, said: "I think partial privatisation would help, I really do."

He said: "Hopefully it will allow the Royal Mail to be more competitive and help provide a more efficient service for direct mail."

[POSTMAN]

w******s...

[pinstripe]

Of course they would! Privatisation leads to more competition and lower prices. Only the poor sods delivering their 'direct mail' seem concerned about it though. Still, when we are delivering the mail, both addressed DSA and unaddressed direct mail at 8.00pm maybe someone, somewhere will say that enough is enough, then again probably not.

[Big Daz]

When will these dimwits realise its the rules of the market thats the problem not the flipping ownership status.

Unless there is level playing fiels then who owns RM is totally irrelevant it still will stay in a mess.

The dimwits make me flippin

[janitor]

But if we were privatised we would no longer be the state owned postal service, and we can tell TNT UK Mail where to shove their DSA.

[Big Daz]

But if we were privatised we would no longer be the state owned postal service, and we can tell TNT UK Mail where to shove their DSA.

That all depends on the terms of the licence under which we operate.

[TrueBlueTerrier]

But if we were privatised we would no longer be the state owned postal service, and we can tell TNT UK Mail where to shove their DSA.

That all depends on the terms of the licence under which we operate.

Which handily explains the nature of our current position:

Not truly a Government organisation as we are expected to make a profit in a liberalised marketplace.

and

Not truly a Business in a Free Market as we are the only ones that Postcom can fine and that have licence obligations, such as access to network and prices, which no other business has to operate under.

Basically a typical New Labour fudging.

[plodsie]

Then where would the USO lie? Will it be put up for tender to the cheapest bidder? Imagine a private RM not bothering to bid as it now loses so much money from it.

[TrueBlueTerrier]

Then where would the USO lie? Will it be put up for tender to the cheapest bidder?

My gut feeling is that the USO will be trimmed to the absolute minimum and Royal Mail will be expected to uphold it with subscriptions paid by other Postal providers. But to do even this the other providers would expect RM to loose its exclusive VAT exemption.

Neo-liberals should be called Market driven parasites.

[Big Daz]

Which would put up what we charge and therefore we lose more money.

[F0zziebear]

I expect with all things that those in more rural places will have to pay more to send their mail in the future. One could expect prices to come down in urban areas as there is more competition and go up in rural areas as there will probably one maybe a couple of providers. It is possible to service 60% of the population over a geographical area of 10%, so why would competitors be interested in the rest?

I suspect RM will still run rural operations and urban ones privatised. I can't see for example RM needing to provide the delivery service in London, Manchester, Birmingham and the other major cities. I suspect TNT and DHL will take over these facilities. I expect companies will have zonal prices to pay in the future, which means that DM companies will trim their direct marketing campaigns to more urban areas.

I hope this makes sense. You may not agree with it, but as with the trains I expect it will happen. Loads of small companies come along, some fcuk up others do ok, consolidation and almost an oligarchy (as we see with the trains) will be created.

[TrueBlueTerrier]

I hope your prediction does not come true Fozzie because although it will be cheaper for businesses, and that seems the only reason most utilities are privatised, the cost of a stamp will increase and the service to invidual customers will only become worse. In most of the nationalised industries the following has happened:

Shareholders make money.
Senior Managers get huge bonuses.
Fund Managers make a killing on predicting future share prices.
The business makes vast profits
More Managers are hired.

Public pay more for the same or a worse service.
Workers pay and conditions worsen.
More workers are sacked or laid off.
Pensions are worsened unless your upper management


The public seem generally against privatisation but I think its 100% guaranteed to happen, I think all we can do is try to get as much protection for the workers and public as possible.

[pickaname]

How about we return to a monopoly? RM would make a profit and the USO would be upheld...everyones a winner.

f**k the competition...liberalisation will eventually mean no Postal Service at all as the pie will be divided so thinly that no company can operate.

[plodsie]

If we ever did leave the EU that could be a possibility. I really do think that if as predicted Liebour are booted out, the Tories could rescind a lot of EU laws. Postal liberalisation could be one of them.

[BELIAL]