Future is worrying

[TrueBlueTerrier]

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IN THE run up to the privatisation of Royal Mail I wrote several letters to the SA in opposition to the move, but of course it was a foregone conclusion that the sale would go ahead in any case and yet another theft from the taxpayer would ensue, as it was just as much about a dogmatic political statement as it was about speculative cronyism for the coalition governments ‘wealthy friends’ in the city.

As has been the case for several previous sales with most notably our ‘state owned railway network’ being a case in point, the Royal Mail was sold for a vastly undervalued knock down price with as forecasted and deplorably as always the majority of shares being given on a plate to the bankers and speculators.

Since that sordid event, we have all seen the first increase in postal charges with undoubtedly many more to follow in rapid succession as yet another service has bitten the dust and is now run purely for profit, with as forecast the privateers only being interested now in the more lucrative ‘parcels’ side of the business.


Even more worrying is that even so soon after the sell off there have been rumblings in the media this week that the ‘letter postal service’ is becoming unviable, with the excuse being that because of internet traffic and other means of communication, so it would appear that the reassurances of the coalition government that the services provided by the Royal mail were enshrined in law and are protected seem to be worthless, and at this point in time I cannot help myself for saying, ‘well I told you so’.

The threat that this may mean for the jobs of ‘posties’ not bear thinking about, and the first that will know about the demise of the ‘letter post’ will be those in rural areas where deliveries cost more, and that the private business now sees as being uneconomic.

There of course is the competition service from the Dutch private operator TNT which is increasing services to urban areas where yet again it is deemed viable to do so, but this of course will not benefit those in rural areas, and will only lead to an escalation in the demise of the now privatised Royals Mails letter postal service.

Finally in Canada the privatised letter postal service has all but disappeared completely amongst many protestations that have just been ignored by the Canadian government.

[daveyeff]

fishtank said more or less the same thing before it all went through....soon after privatisation the owners would come back saying the uso is unsustainable,,,we cant afford it....legally binding or not....it was all a load of old toilet clarts anyway. well spotted fish and i hope you are saying ''i told you so''

[Brain Fury]

Privatisation is a complete red herring. The issue is TNT's direct delivery and the response of Ofcom (or the lack of it).

[Danelectro]

Privatisation is a complete red herring. The issue is TNT's direct delivery and the response of Ofcom (or the lack of it).

The regulator/tnt issue is true but privatisation Its not a complete red herring as you also have to take some of the profits away to provide dividends to shareholders and also endure so far unsuccessful attempts to over throw Royal Mails tax exemption as USO provider.

[Budfrog]

Privatisation is a complete red herring. The issue is TNT's direct delivery and the response of Ofcom (or the lack of it).

The regulator/tnt issue is true but privatisation Its not a complete red herring as you also have to take some of the profits away to provide dividends to shareholders and also endure so far unsuccessful attempts to over throw Royal Mails tax exemption as USO provider.

And there is also the VAT exemption which subsidises the USO (to a degree).