James Daley: Why is privatisation such a dirty word?

[TrueBlueTerrier]

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Walking through Waterloo station this morning, I was handed a flyer by someone campaigning against the privatisation of Royal Mail. Amongst its "10 reasons to SAY NO" was the rather rash and unsupported statement that it would "repeat the mistakes of privatisations in other industries".

For me, this was the point where the flyer lost all credibility. After all, while there have undoubtedly been mistakes in previous privatisations, I believe that most privatisations have turned out to be something of a success in the long-run. Competition in the phone market has meant we all now pay practically nothing for a landline. Electricity and gas prices were also driven down post-privatisation and while they have increased recently, regulators are now intervening to ensure that consumers continue to get a good deal.

Admittedly, there are industries, such as the railways, that are still some way from what you could call a success – but this does not mean that privatisation should be dismissed out of hand.

When it comes to the postal service in Britain, it's hard to deny that there's a serious problem. It's no exaggeration when I say that roughly one in 10 packages that are sent to my flat never arrives. And if they've not been insured by the sender, there's nothing I can do about it. Furthermore, the post now rarely arrives before 4 or 5pm, and the local post-box is now only emptied once a day – rather than four or five times, as it used to be.

Ultimately, the Royal Mail needs billions of pounds worth of investment to restore its service to the level that we all expect – and this is money that the Government simply doesn't have at the moment. So why not allow the private sector to provide some of that investment, in return for a share of the profits?

I'm always disappointed that whenever economic times get tough in the UK, there's a lurch to the extreme left in public opinion. Next week, thousands of people are set to join an anti-capitalism march in the City of London to protest against our "greedy bankers". While a few days ago, Sir Fred Goodwin, the former RBS chief executive, had his house and car vandalised – no doubt by sympathisers to the anti-capitalist cause.

But all these people have benefited to a large degree from capitalism – which has helped generate wealth and pull more and more people out of poverty over the past few decades. Though inadequate regulation has meant that we are now suffering from a harder recession than we might have, this is all part of capitalism's development and evolution. Capitalism has evolved at a frightening rate over the past couple of centuries, and it is no wonder than we have not yet created a perfect system. Nevertheless, what the last two centuries have shown is that markets and competition can be used to the benefit of everyone – not just the richest in society.

If Royal Mail is privatised, it should be with the proviso that services must still be provided to every house in Britain, and that postal prices cannot be raised beyond a reasonable ceiling. If these kind of regulations are put in place, what is it that we have to fear? Surely standards can only get better.

[norbert]

they always put articles by right wing journalists in " The Sindy " & " The Guardian " to wind people up , the journalists tend to be ex " The Daily Heil " or " Daily Express " , nothing to do with the forthcoming Euro Elections of course

[Yahoorsur]

they always put articles by right wing journalists in " The Sindy " & " The Guardian " to wind people up , the journalists tend to be ex " The Daily Heil " or " Daily Express " , nothing to do with the forthcoming Euro Elections of course

Yup,the whole article IMHO is 'I posted a letter once I know what I'm talking about'.(by the way Postman you should copyright that phrase,it's a good un),will prob post later on,

[pinstripe]

"If Royal Mail is privatised, it should be with the proviso that services must still be provided to every house in Britain, and that postal prices cannot be raised beyond a reasonable ceiling. If these kind of regulations are put in place, what is it that we have to fear? Surely standards can only get better."

So, is he suggesting that we only privatise the profitable parts and keep the costly delivery side in public hands? Mmmn, less expense for our 'strategic' partners then and more cost for the taxpayer. He doesn't have a job on the side at TNT does he? As for the "surely standards can only get better", how exactly can they improve when the profitable section of RM has been sold and there is NO money to improve them. IMHO the guy doesn't know what he's talking about and is merely parroting what his editor told him to write. I can't believe that in the present situation with the Capitalist system falling apart (and without hundreds of billions of public money being spent to prevent a total collapse) that anyone could spout the benefits of it.
And before anyone says I'm Anti-Capitalist, I'm not, I just believe when it fails it really fails.

[norbert]

"If Royal Mail is privatised, it should be with the proviso that services must still be provided to every house in Britain, and that postal prices cannot be raised beyond a reasonable ceiling. If these kind of regulations are put in place, what is it that we have to fear? Surely standards can only get better."

So, is he suggesting that we only privatise the profitable parts and keep the costly delivery side in public hands? Mmmn, less expense for our 'strategic' partners then and more cost for the taxpayer. He doesn't have a job on the side at TNT does he? As for the "surely standards can only get better", how exactly can they improve when the profitable section of RM has been sold and there is NO money to improve them. IMHO the guy doesn't know what he's talking about and is merely parroting what his editor told him to write. I can't believe that in the present situation with the Capitalist system falling apart (and without hundreds of billions of public money being spent to prevent a total collapse) that anyone could spout the benefits of it.
And before anyone says I'm Anti-Capitalist, I'm not, I just believe when it fails it really fails.

like the utilities , the railways , BT is supposed to have got better but it was starved of investment but the Tory Government were happy to take the profits , In Europe you have much cheaper and faster broadband but here you'll only get those advertised speeds if you were in a caravan in the Telephone Exchange Car Park , Crapita a fine example of out sourcing , a child's parents get a letter that she can't attend the School Prom as her attendance wasn't good enough , it wouldn't be as she'd been dead for a few months - very tactful and sensitive , as if they didn't have enough problems

[johnsouthwales]

phones were expensive in th 1970s..they became more accessable to the nation after 1984 sell off..shareholders benefit, and the government benefited. it brought in more customers therfore bringing in more vat revenue...phone is still expensive now..hardly use mine, still get charged BT option 1 tariff £10.99 plus vat.. line rental going up 98pence in april 1st from £10.27 to £11.25 plus vat ..got bt broadband, theyre expensive too £14.99 a month for 10gb downloads.. they should do a better deal for customers. unlimited bt broadband is around 25.00

that school that sent out that letter, was computer generated.

[BELIAL]

Another Tory free marketeer whinnet, no logic and no shame ,so much of this piss poor propaganda about now I couldn't even be bothered to get to the end(read it all before many times,repetitive dribble} :mfo

[norbert]

phones were expensive in th 1970s..they became more accessable to the nation after 1984 sell off..shareholders benefit, and the government benefited. it brought in more customers therfore bringing in more vat revenue...phone is still expensive now..hardly use mine, still get charged BT option 1 tariff £10.99 plus vat.. line rental going up 98pence in april 1st from £10.27 to £11.25 plus vat ..got bt broadband, theyre expensive too £14.99 a month for 10gb downloads.. they should do a better deal for customers. unlimited bt broadband is around 25.00

that school that sent out that letter, was computer generated.

there was a lack of communication with the school / incompetence on the part of Capita , the poor girl should have been taken off their data base . That would have cost money though .

[Stormproof]

I'm surprised this idiot found time in his perfect life to even bother writing about privatisation, it must be nice to live in a bubble and he's obviously happy to pay the highest prices for everything.

[k979aaa]

I'm surprised this idiot found time in his perfect life to even bother writing about privatisation, it must be nice to live in a bubble and he's obviously happy to pay the highest prices for everything.

And you are quite right as success in business always has a healthy profit margin behind them all where does the profit come from the average Joe/Johanna in the street!. Capitalism is a muggers game they are the real thieves of a nations wealth!.

[stokes11eg]

I'm surprised this idiot found time in his perfect life to even bother writing about privatisation, it must be nice to live in a bubble and he's obviously happy to pay the highest prices for everything.

All I know is. I go back to the time when things were pre-privatisation, and things were so much better.All services were second to none.From the N.H.S to public transport you could set your watch by,and consumers had very little to complain about.Today, thanks to privatisation,all services are expensive, and absolutely crap. The only people to benefit are the fat cats, who have almost brought the country to bankruptcy--and that's supposed to be good?

[norbert]

I'm surprised this idiot found time in his perfect life to even bother writing about privatisation, it must be nice to live in a bubble and he's obviously happy to pay the highest prices for everything.

All I know is. I go back to the time when things were pre-privatisation, and things were so much better.All services were second to none.From the N.H.S to public transport you could set your watch by,and consumers had very little to complain about.Today, thanks to privatisation,all services are expensive, and absolutely crap. The only people to benefit are the fat cats, who have almost brought the country to bankruptcy--and that's supposed to be good?

stuck in the 80's , bit like RM's Senior & Area Management , you got that mantra parroted out , Private = Good , Public = Bad , Nicholas Ridley did the outsourcing / contracting out to smash COHSE which later became part of UNISON as they had too much influence on Hospitals and certain London & Birmingham , Liverpool councils .

You ended up with cr** like Service Team & Carillion with race to the bottom & NMW . Nowadays " Sid " ( British Gas - Tell Sid ad campaign ) would be hanging from a lamppost .

Now MRSA has too much influence ! in hospitals and the Hospital Managers have no real control over their hospitals . On the railways , they separated maintenance and renewal to break the RMT , those true blue Tory Building Firms don't do unions . Subsidy is 5- 6 as much as the bad old BR days , Beardy Branson and such like have taken the tax payer to the cleaners , £49 million profit one year .