The UK government has said it accepts a report’s recommendation that the Royal Mail should be part-privatised.
The study by Richard Hooper says new minority owners can offer the “confidence, experience and capital” needed to carry out vital changes.
Describing the current Royal Mail as “untenable”, the report adds that the universal service is under threat without modernisation.
Dutch firm TNT said it would be interested in a stake in Royal Mail.
Why is it that the solution to the problems of a state owned business is to privatize it? Reading the report into the Royal mail’s problems one thing is abundantly clear: Lack of modernisation in comparison to Germany’s Deutsch Post for instance.
But why the lack of modernisation? Because of decades of little investment by successive Governments.
The German government allowed Deutsch Post to plough back postal income into efficiency investments over the years. They used their monopoly income to improve service – but also buy dozens of private companies to become the biggest logistics operator in the world.
This simply hasn’t happened in the UK.
The trouble is, even with this “part privatisation” the Government is continuing to go down the road of the previous conservative Government; not wanting to invest and modernise itself, sell it off to the private sector.
But how long before it is wholly privatised, the best bits cherry picked, more jobs lost, unprofitable postal routes either restricted or closed, and price increases?
And you would have thought that they would have looked at the previous privatisation of former state owned services, they have been nothing short of disastrous for the UK customer and very profitable for the shareholder.
In short: Keep it wholly nationalised, make the investment, modernise and reap the rewards that it will return to the UK taxpayer, and not the dividend the shareholder alone will pick up instead.
Why is this Government not prepared to invest in this business at a time when it has thrown billions of tax payers money at private organisations such as the banks?

Chao’s. Apparently.
3 02 2009London has been hit by it’s biggest snowfall since 1991. Of course the whole transport network fell flat on its face as a result. Usually I’d be the first to criticise those who run the privatised transport system in this country for probably thinking that we would never get hit by snow like this, so why should we spend money on snow clearance equipment we may not need?
But I won’t. The heaviest snowfall fell in the Thames valley which has the largest population concentration in this country and as such a transport network to match.
The media made a song and dance about, interviewing the usual disgruntled travellers trying to get to work and businessmen complaining about how much money has been lost in the economy as a result.
As I said before, we haven’t had snow like this for eighteen years, If snow like this was a regular occurrence and everything ground to a halt, then yes there would be cause to complain.
Get over it. The snow will be gone in a few days and it will be business as usual.
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