Royal Mail to be Sold Off

[Johnny Bognor]

The postal services bill went through parliament today, which will ultimately result in the sell off of the Royal Mail

 

http://www.morningstaronline.co.uk/i...iew/full/99784

 

Where I don't think privatisation of search and rescue is a good idea, the sell off of the Royal Mail is inevitable.

 

Any posties on here care to comment?

[buctootim]

The biggest problem for the Royal Mail is that postage costs have been kept artificially low - 32p to have something hand delivered in Scotland ffs, try getting that from DHL or UPS - but at the cost of inevitably compromising its service standards. Ironically if the Royal Mail were free to compete on an even playing field I think they would wipe the floor with much of the competition.

Edited 13 January, 2011 by buctootim

[Joensuu]

Can a real market be created?

 

Definately delivery could function as a real market, but i'm less convinced that collection could work effectively as a market?

 

Would different companies issue different post boxes? If not is collection centralised?

 

How do you ensure that less profitable deliveries are accepted? Regulation?

 

Certainly closer to being a real candidate for privatisation than search and rescue, but I'm still unconvinced that collection can really work as a market.

[Johnny Bognor]

The biggest problem for the Royal Mail is that postage costs have been kept artificially low - 32p to have something hand delivered in Scotland ffs - inevitably compromising its service standards. Ironically if the Royal Mail were free to compete on an even playing field I think they would wipe the floor with much of the competition.

 

Indeed, what they can charge has been capped, athough postcom has just allowed them to increase downstream access costs by 19%.

 

It is ridiculous situation where to post something 1st class in soton only costs a matter of pence for next day delivery in scotland.

 

RM has also had its hands tied with Deutsche Post, TNT, Spring etc discounting and selling business postal services for much less, whilst the RM can't respond. Hence there is an air of inevitability about the sell off.

Edited 13 January, 2011 by Johnny Bognor

[Johnny Bognor]

Can a real market be created?

 

Definately delivery could function as a real market, but i'm less convinced that collection could work effectively as a market?

 

Would different companies issue different post boxes? If not is collection centralised?

 

How do you ensure that less profitable deliveries are accepted? Regulation?

 

Certainly closer to being a real candidate for privatisation than search and rescue, but I'm still unconvinced that collection can really work as a market.

 

In Germany it works. You have a Deutsche Post post boxes and TNT ones too. However, at 80p+ to post something, the consumer doesn't get a better deal.

[JustMike]

In Germany it works. You have a Deutsche Post post boxes and TNT ones too. However, at 80p+ to post something, the consumer doesn't get a better deal.

 

which is the problem they will face. yet again, as with everything elsee, it is us that will suffer in the pocket

[Joensuu]

In Germany it works. You have a Deutsche Post post boxes and TNT ones too. However, at 80p+ to post something, the consumer doesn't get a better deal.

 

Yeah, you're right. I was assuming that people wouldn't want hundreds of new boxes from multiple companies appearing on high streets competing for space with our red ones.