Roayl Mail privatisation a farcical idea

[Geezer]

http://www.ilfordrecorder.co.uk/content ... 3A03%3A230

12 November 2009

SUGGESTIONS that privatisation of Royal Mail is the way forward are quite farcical.

The mail service worked perfectly well before the government, working on the basis of an EU directive, liberalised the market in 2006.

This allowed private companies to come in and cherry-pick the profitable business mail, while picking up none of the universal service obligation to deliver other types of non-profit making post, such as residential.

Previously, Royal Mail used the profits received from business mail to subsidise loss-making residential deliveries, particularly in rural areas.

The Labour government wanted to part privatise Royal Mail, the Conservatives promise privatisation, though insist that private operators will have to pick up the universal service obligation.

The latter proviso will ensure no privatisation because no private company will accept balancing profit and loss-making operations together.

The Communication Workers' Union has been arguing for a public company operating in the public sector, with workers guaranteed a living wage, including conditions like sick and holiday pay.

The private companies offer occasional work at minimum wage levels. Why should anyone accept this race to the bottom nonsense?

If the government accepted the pension deficit (which it would do if the union had accepted part privatisation) and installed a management that was not committed to privatisation at Royal Mail, the company could be a highly successful public service once again.

If, on the other hand, those favouring privatisation have their way, no doubt millions of pounds in tax payer subsidies will eventually be paid out to private companies like TNT and DHL to deliver the unprofitable parts of the business.

PAUL DONOVAN

Dangan Road

Wanstead