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Royal Mail Is To Be Privatised

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But he argues that only the private sector can provide the money necessary to continue the modernisation process,

http://www.bbc.co.uk/news/business-11258649

How many times have i heard that before? how many time has teh tax payer help companies that were once governmen owned that have turn private.

then you have this

For Hooper, privatisation is the logical answer because the letters market is set to shrink for years to come, which makes it increasingly important that Royal Mail becomes more productive and efficient”
End Quote

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Robert Peston
The royal mail should adapted to the changing global situations, its shrinking because the government has taken away most, if not all of its work to other postal providers.

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Uh, isn't the EU behind this? I thought they told the government a year or two back that the Royal Mail had to be privatised.

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For Hooper, privatisation is the logical answer because the letters market is set to shrink for years to come, which makes it increasingly important that Royal Mail becomes more productive and efficient”

this line has been peddled out for years, but a posties bag is not getting any lighter - with on-line shopping and ebay and also 'door to door' deliveries of advertising leaflets, the void left by any decreases in the humble letters is quickly replaced.

also lets not forget that RM also deliver many of their rivals (TNT etc) mail as sub-contractors - and this is the crux of the mater - why do TNT sub-contract so much work to RM if their business model is any better?

get ready for this same story to be peddled out next year and the year after that etc.

the only way to make this venture any more efficient is too charge UK mail according to the distance travelled, hence someone sending a letter from the Outer Hebrides to London should not expect to pay the same price as someone from Cheltenham sending a letter to London

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RM by EU law isn't allowed to have a monopoly on deliveries. So the money making parcel bit was opened up and now they make a loss and can't cover their pensions...

But turning them private won't solve the problem unless

- lower wages

- lower pensions

But I think TUPE means they have to keep staff on same conditions so it's all fairly pointless.

They did used to make a HUGE profit for the govt when it was one business though.

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.... can't cover their pensions...

..

You got it.

Just like BT, BA and all the other privatised companies.

Government cannot pay the pensions so privatise them and they go bust when the workforce retire - not a government problem any more, shareholders get burned instead. Any company with a big pension surplus must be liquidated so the pension can be stolen - British Coal.

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But turning them private won't solve the problem unless

- lower wages

- lower pensions

But I think TUPE means they have to keep staff on same conditions so it's all fairly pointless.

They did used to make a HUGE profit for the govt when it was one business though.

The post office is ripe for automation though. IIRC they still use pigeon hole labour intensive sorting in many places, so that a postie's route is alligned with the order of the post stack he brings out.

If the RM could bring in advanced OCR so that hand written addresses could be read, this could sort out the post and bundle them into an optimised route which the postie walks..

However many comments are correct that the post is simply becoming obsolete...

I have paperless billing, for everything as I shred most things anyway and they don't make a good fuel.

Things like Kindle and downloads mean books, music and software no longer needs to be delivered, paypal has reduced cheques...

The only thing which does come through my postbox is a stack of charity sucker letters...I assume when I get home there will be a massive stack behind the door of charity sucker letters. That is all.

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Frame it. Once they are privatised the price will only be going one way and it won't be down.

Which will incentivise non physical delivery methods, ie. downloads. The business models of Lovefilm.com type things is looking shaky on the back of this too.

But then I suppose ISPs will just have us over a barrel instead.... ISPs have been cutting download limits (which means browsing too) lower and lower as time goes by.. 2008 I was on an unlimited deal, never used more than 15GB a month. The ISP trimmed it down to 10GB a month.

Or adverts like BT which advertise 20MB/s but only give you 2GB... it is funny how companies advertise 500mb mobile internet as 'massive' when 500mb will do about 10x3minute youtube videos. Hell just looking at HPC on a daily basis sucks 250mb out the window already!

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this line has been peddled out for years, but a posties bag is not getting any lighter - with on-line shopping and ebay and also 'door to door' deliveries of advertising leaflets, the void left by any decreases in the humble letters is quickly replaced.

The weight of the bag is irrelevant, all that has happened is that letters have been replaced by walksort and bulk crap, the money just isn't there.

Privatisation works because it allows them to do what is politically sensitive, destroy more post offices and reduce the depots by 75%(and thus reduce the number of depot workers by the same). We have already seen this starting, when the news said they were replacing bikes with trolleys due to "health and safety" the first comment on that news story said "In reality that's because trolleys fit in vans and can be brought in from anywhere, bikes don't"

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The royal mail should adapted to the changing global situations, its shrinking because the government has taken away most, if not all of its work to other postal providers.

this line has been peddled out for years, but a posties bag is not getting any lighter - with on-line shopping and ebay and also 'door to door' deliveries of advertising leaflets, the void left by any decreases in the humble letters is quickly replaced.

Email....paperless statements....e-Christmas cards...there are lots of reasons for genuine postal decline and it's nothing to do with the government.

Certainly eBay and Amazon etc have added extra post but the overall net effect is surely a massive fall. Most mail is business mail - not people selling junk off ebay - and these days at work I rarely send or receive physical mail. We used to do EVERYTHING by post, now it's all email.

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Anyone noticed the price of a stamp lately, 42p.

I'm in the process of outsourcing our outgoing mail to TNT, who will full colour print , envelope and deliver (apart from the 'last mile'done by RM) our mailshots for 34p each.

Happy days.

Edited by Reck B

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I'm in the process of outsourcing our outgoing mail to TNT, who will full colour print , envelope and deliver (apart from the 'last mile'done by RM) our mailshots for 34p each.

Happy days.

It won't be 34p once the mail is privatised.

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I'm in the process of outsourcing our outgoing mail to TNT, who will full colour print , envelope and deliver (apart from the 'last mile'done by RM) our mailshots for 34p each.

Happy days.

The issue is RM have been forced to give up profitable deliveries and routes while carrying the loss making ones. You don't see RM's competitors carrying post to the isolated houses and hamlets in the countryside. In fact RM is forced to carry its competitors mail to these places at a loss. Also RM's competitors do the vast majority of the very profitable city package deliveries. Again where its profit making its gone to the private competitors, where its loss making it's left or subcontracted to the good old RM.

Its got to be asked why its been allowed to happen this way. Why RM has been forced to offer a discount to its competitors that allows them to collect from a business, cheaper than RM can. All the competitor has to do is pick up from a fixed destination and deliver this to RM who HAVE to deliver the mail at a discount. Its regulation gone nuts.

Its got to be asked why are RM subsidizing its competitors in this way. Why can't it either deny access to its delivery system or charge on it so that it makes a profit on the subcontracted work

You can guarentee that this will change upon privatization. But then we'll just have another monopoly-type business run for profit rather than public interest and we know how that ended up working with the other privatized monopoly utilities.

Edited to add : that 34p mail isnt delivered at all by TNT. TNT simply prints it, stuffs it in an envelope, then delivers it to the RM sorting office for which it pays RM less than the cost of delivery. Its going to cost you a lot more than 34p when RM is privatized and can charge what it likes (i.e. enough to make a profit) on its subcontracting work.

Edited by alexw

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Royal Mail has to, by law, delivery it's competitors mail for about 14p an item.

This is like being the only one in the street with a car.

So the government passes a law, now everyone else can use your car, but they only have to pay for the fuel.

You get all the bills, MOT, servicing etc.

The result is the car becomes a piece of junk.

Soon everyone ends up taking the bus!

Royal Mail is going bust. Just as planned.

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Royal Mail has to, by law, delivery it's competitors mail for about 14p an item.

This is like being the only one in the street with a car.

So the government passes a law, now everyone else can use your car, but they only have to pay for the fuel.

You get all the bills, MOT, servicing etc.

The result is the car becomes a piece of junk.

Soon everyone ends up taking the bus!

Royal Mail is going bust. Just as planned.

+1 they just want it privatised before it does.

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If they are privatised it will be very expensive for the tax payer.

Many rural offices operate out of little more than wooden sheds, some with no toilet faculties.

The cost of updating all these places will be astronomical.

More tax payers money is spend on the railways now than before the privatisation. The Postal service will be a repeat of this.

Royal Mail has not had the likes of Doctor Richard Beeching chopping off section of the network.

It's all still there, mostly unseen by the public, and in a right old state.

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The introduction of pricing by distance will be a tricky one. Cannot see it going down well in Scotland.

It will get interesting if Scotland introduce their own postal service. Followed by the Welsh and the Irish republic delivering on the Shankill Road.

Still nothing like the break up of the Union and a little civil war to cheer up a depression.

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