Blame Mandelson for Royal Mail privatisation

[TrueBlueTerrier]

http://www.morningstaronline.co.uk/inde ... vatisation" onclick="window.open(this.href);return false;

The government is aiming to part-privatise Royal Mail and break an election promise despite over 100 Labour MPs arguing against the sell-off.

The reason can be found in the findings of the Hooper inquiry into the postal service, which the government says it will implement.

The report says:

1) EU countries must fully privatise postal services by 2012

2) "Unless Royal Mail can modernise faster, a forced restructuring under European rules is highly likely."

The Hooper Report also says that, unlike its competitors, Royal Mail's postal services are exempt from VAT. This represents an advantage for Royal Mail that the European Court of Justice is looking into. It is expected to rule in 2009 on the correct application of the exemption. The ruling will be binding on Britain.

Hooper also says the £5.9bn pensions fund deficit should be taken over by the government but if this is done there would be no need to privatise Royal Mail as it is already making a profit in all sectors of its operations.

It is unlikely to be an accident that it is unelected Lord Mandelson, an ex-EU trade commissioner, who is pushing the part-privatisation agenda, a half-way house to full privatisation.

With new Labour, the Tories and Lib Dems vying with each other over failed policies, it is time to demand Royal Mail and other public services such as the NHS remain public.

The anger of the people over MPs' expenses fiddling is such that, if channelled into these demands, Royal Mail privatisation can be stopped.

Write to your MP and demand no privatisation of Royal Mail. Call on the TUC to work with the postal workers' union CWU to organise a national public solidarity campaign to stop privatisation of Royal Mail.

RON DORMAN
Birmingham

[Big Daz]

privatise or liberalise?

Is there a difference?

[andy2007]

No.

[TrueBlueTerrier]

Strangest definition of Liberalisation I have seen. When the major player has had more regulations and conditions imposed on it since Liberalisation happened it does not quite gel with the definition I have in mind.

[k979aaa]

Strangest definition of Liberalisation I have seen. When the major player has had more regulations and conditions imposed on it since Liberalisation happened it does not quite gel with the definition I have in mind.

Not so much liberalise more CHASTISEMENT!. :mfo

[POSTMAN]

EU countries must fully privatise postal services by 2012

That aint right is it??

[TrueBlueTerrier]

EU countries must fully privatise postal services by 2012

That aint right is it??

No the writer confused Liberalise with Privatise

[Big Daz]

Some countries are still 2009.

Holland/TNT comes under 2009.

I seem to recall TNT/Holland wanting to have their deadline extended.

[Ahebban]

You can have a privatized RM but not necessarily a liberalized RM.

[Ahebban]

http://ec.europa.eu/internal_market/post/index_en.htm" onclick="window.open(this.href);return false;

The postal services sector is of vital importance for commercial users and consumers alike and is considered as a service of general economic interest (SGEI). The postal markets are dynamic and quickly evolving in conjunction with the ever widening markets of communication, advertising and electronic commerce.

Overall in the EU, postal services are estimated to handle 135 billion items per year, reflecting a turnover of about € 90 billion or about 1% of Community Gross Domestic Product (GDP). About two-thirds of this turnover is generated by mail services. The reminder is generated by parcels and express services which are already in the competitive area (i.e., the market is fully open to competing operators).

The objective of the EU postal policy is to accomplish the Single Market for postal services and ensure a high quality universal postal service as part of the Lisbon Agenda. It thus focuses on postal customers, both business and consumers. These objectives are pursued by opening up the sector to competition in a gradual and controlled way on the basis of the regulatory framework of the Postal Directive (Directive 97/67/EC as amended by Directive 2002/39/EC) and as amended by Directive 2008/06/EC). The improvement of quality of service, in particular in terms of delivery performance and convenient access are fundamental aspects of this policy. The Commission monitors and ensures the correct implementation of the regulatory framework and, where appropriate, proposes changes to this framework in order to achieve the Community's postal policy objectives.

Under the 3rd Postal Directive (Directive 2008/06/EC), full market opening will be accomplished by 31 December 2010 for the majority of Member States with a further two years allowed for 11 Member States.
The monitoring of the market, technology and regulatory developments will have to continue also after the full market opening in order to safeguard the EU postal policy objectives and the sustainable development of the postal sector in the European Union.

In fact, with the adoption of the Directive 2008/06/EC, the EU postal reform has entered into a new phase. Only if all stakeholders remain truly committed to pursuing them with a constructive spirit and to actively contributing to them, will the objectives of the EU Postal Reform and the internal postal market be achieved and will the European Union and its citizens effectively benefit. The Commission is strongly committed to help Member States and all stakeholders in these efforts and activities.

...

[Big Daz]

Nice one Ahebban

3rd directive, maybe things are not working out for the EU?

[Ahebban]

Smiles. Thanks, Big Daz.

In answer to your query regarding TNT/Holland I found this on the same site as above in the 'News' section.

It says all you need to know about TNT really :

However, the Netherlands, where full market opening was envisaged for 2008 at the latest, has now postponed liberalisation without setting any firm date for full market opening.

[Big Daz]

Dont forget the VAT issue which TNT lost and their challenge to the governmment loan which they lost as well.

[Ahebban]

Yes indeed Big Daz. I fear that TNT will rely on the European Courts to put RM and our government under pressure to comply whilst still able to feather their own nest. Unless RM and the government are out there pursuing TNT/Holland through the European courts for the restrictive practices operating within their own postal service.