Halt to mail sell-off called for

[rhino49]

http://news.bbc.co.uk/1/hi/uk_politics/7975747.stm" onclick="window.open(this.href);return false;


Halt to mail sell-off called for

Ministers say Royal Mail needs urgent modernisation

The government must halt plans to sell-off part of the Royal Mail until it has explained what the deal involves, a cross-party committee of MPs has said.

The Business and Enterprise Committee said there was a "worrying lack of transparency" to the deal.

Committee chairman Peter Luff conceded Royal Mail's vast pension deficit had to be tackled, but said it did not follow a "part sale" was necessary.

The government says their plans are the best way to make Royal Mail profitable.

It argues a "strategic partnership" with a private-sector company - which would take a stake of about 30% in Royal Mail - is the best way of modernising the service, which currently has a multibillion-pound pension deficit.

But Mr Luff said he and the committee had grave reservations over the proposals.

He said: "We don't know how much this sale will raise, we don't know the use to which the money will be put.

"We're very sceptical about the need for this sale and we believe the government needs to provide answers to these questions before the House of Commons can possibly consider the bill."

He added: "We do not believe a 30% stake is the endgame. We believe there will be a commercial agreement signed between the government and whoever that person is, which will take the stake beyond 30% in the future.

"Possibly my biggest single concern is we do not know what's going to be in the most important document of all - the contract between the private sector strategic partner - the equity partner - and the government."

Meanwhile in the House of Lords Business Secretary Lord Mandelson, who has championed the sell off, said the government hoped to complete the deal "later this year or early in 2010" and that "the process to find a partner is already under way".

It has also been revealed that ministers from Lord Mandelson's Whitehall department have held four separate meetings with a leading private sector bidder - Dutch giant TNT.

More than 140 Labour MPs have declared their opposition to the Bill, which allows the part-privatisation to go ahead.

But, with Conservatives and Liberal Democrats generally in support of the plans, the chances of a major government defeat are remote.

[johnsouthwales]

http://www.mirror.co.uk/search.cfm?what=royal+mail" onclick="window.open(this.href);return false;

[TrueBlueTerrier]

Committee Report available to download at http://www.royalmailchat.co.uk/communit ... 36&t=15475" onclick="window.open(this.href);return false;

[johnsouthwales]

in the comitte report, it states: pay set above market rates, leading to a situation in which labour costs at Royal Mail Group were among the highest of European postal companies.

i don't get this somehow.. if royal mail is one of the cheapest services in sending costs.. at the moment, a german worker gets over £8 an hour. can't find any info on other countries. so royal mail aren't the highest labour cost, so why drag this equation into the commitee in the first place? does van running costs get thrown in how they calculate labour cost?

[johnsouthwales]

i've had a reply regarding this by email:

the comparisons are not derived purely from the hourly rate paid but a formula that also takes in productivity and many other factors and to be honest, the figures are probably open to interpretation. A formula would make some sense as it applies in many other industries these days. This is largely why Croziers "Overpaid and underworked" statement came from. What he actually said was that that UK postal workers were paid more (relatively) but much less efficient which whilst true, did not mean that postal workers were lazy or slackers but that too much was done by hand.

You'd also have to look at taxation levels, inflation, contracts, and any other costs incurred by other postal workers in other countries. It'd be difficult to find enough information to get accurate info although UNI Global might be able to help as they represent European postal workers but I think you'd still need to double-check any info you find - just to make absolutely sure.

This is where deregulation starts to become complex as you then get one country asking for more money because another country pays so much. Germany/Holland had this issue. We keep harping on about 'disparity' between euro states in terms of pay and geographics and this is why. Some countries are tightly packed, other more spread out. Not easy is it? :)

[norbert]

i've had a reply regarding this by email:

the comparisons are not derived purely from the hourly rate paid but a formula that also takes in productivity and many other factors and to be honest, the figures are probably open to interpretation. A formula would make some sense as it applies in many other industries these days. This is largely why Croziers "Overpaid and underworked" statement came from. What he actually said was that that UK postal workers were paid more (relatively) but much less efficient which whilst true, did not mean that postal workers were lazy or slackers but that too much was done by hand.

You'd also have to look at taxation levels, inflation, contracts, and any other costs incurred by other postal workers in other countries. It'd be difficult to find enough information to get accurate info although UNI Global might be able to help as they represent European postal workers but I think you'd still need to double-check any info you find - just to make absolutely sure.

This is where deregulation starts to become complex as you then get one country asking for more money because another country pays so much. Germany/Holland had this issue. We keep harping on about 'disparity' between euro states in terms of pay and geographics and this is why. Some countries are tightly packed, other more spread out. Not easy is it? :)

RM was a cash cow but there was no investment in mech over the years , the common New Labour / Hooper mistake made with RM is that profitability is confused with efficiency , also the Postal Part of the European firms is a lot smaller & they charge more and deliver less frequently , apples and oranges

[johnsouthwales]

beats me.. germany is a bit bigger than the uk and has more of a population.. believe it or not, italy has a slightly smaller population than the uk but has a larger area. same with france.. britain is more densely populated than germany approx 5%.. holland has population of around 17m, same size in area of northern ireland and has a denser populaton approx 75% more than britain... work that out.. holland is easier to manage cos it flat... britain has 160,000 workers. not sure how many holland has, as info once again is not readily available. holland has approx 60,000 ...

[Lounge Lizard]

Well, if we are overpaid, underworked, lack mechanisation and deliver more frequently than elsewhere, how come postage rates in many other European countries are about double what they are here ?

[johnsouthwales]

germany has rural areas too like britain.. so its not only a question of population density, which is used in formulating costs.. as a guess, may as well come up with a figure at random of employing 1 postie for every 1000 inhabitants, which of course does't mean they all live in a town. you're always going to get someone who lives in the sticks 3 miles from a town lol.

probably mandalson thinks holland is the same size as britain pmsL

[johnsouthwales]

then again, german postal workers and communities took a hell of a hammering with their privatisation programme and changes

[norbert]

then again, german postal workers and communities took a hell of a hammering with their privatisation programme and changes

that was done over a much longer period , no doubt better thought through & organized too . The excuse reeled out for RM Snr Mgt is that there is no time and Europe calls the tune , so that makes everything OK then

[johnsouthwales]

and in germany, you can buy a 'stamp' without having to leave your home... this is expensive. All you need are a cell phone and a pen: Order your HANDYPORTO postage by sending a text, in the reply within one minute, you get an unique 'stamp' number, copy the number onto your letter or postcard and send it on its way! it costs 0.85 euro plus cost of sending the text..payment is settled on phone bill

in the uk you can send a postcard for 39pence.. in germany someone can send a postcard for 0.45 euro (41 pence).. when using the mobile phone method will cost 0.85 euro (77 pence)

if you send a small letter here (25 grammes) 235mm by 125mm, it'll cost 39 pence. in germany, it'll cost 0.55 euro (50 pence). by mobile, it'll cost 0.95 euro (86 pence)

hope this phone thing doesn't catch on in the uk, cos the only people who are making money is the phone company...or are deutsche post getting more money than they should????

it's a good system in principle for people who cannot get out (such as disabled, elderly)and have suffered post office closure in rural and isolated areas.
i wouldnt want to advocate this method for people in urban/city areas as it will stop people from going to a local post office and losing a transaction.