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Privatisation

The latest news and discussion on Royal Mail Shares.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
All news and discussion on Daniel Kretinsky's full takeover of Royal Mail.
robnant
Posts: 10
Joined: 26 Feb 2010, 06:50
Gender: Male

Privatisation

Post by robnant »

Can anyone tell me what the benefit will be of Privatisation? if RM's profits have increased from £100 million to £400 million, why is there so much desperation to get "outside investment"? My belief is that if the General Public were told what is really going on in RM, at least 95% would prefer RM to stay as it is, rather than have shareholders, investing merely to receive a juicy Dividend.

It is a SERVICE to the General Public, and as such, should not be run along the lines of other "profit based" companies.

Royal Mail is a unique entity. It was set up for the people, is operated by - excluding idiots with the strangest of "improvement" ideas - ordinary people and does a bloody good job, delivering to every household 6 days a week. As such, it should be treated as a unique, "not for profit at all costs" business. Providing it doesn't make ridiculous losses, why change?

Or am I being a little naïve? Obviously, as soon as RM does get sold, Ms Green will bugger off, job done, cash in Bank, leaving us poor sods to pick up the pieces. Once sold, it will never go back to being what it should be - a Service set up to serve the UK public.

And by the way, I wonder how much the management will be picking up along the way?
borders
Posts: 1303
Joined: 11 Sep 2007, 09:10

Re: Privatisation

Post by borders »

well Rob I totally agree with you , unfortunately the Government and its ideology does not .....
"why should it just be the bankers, politicians and the idle rich who get all the best things ? we demand a standard of living for our members that enables them to share in the fine wines and times that the likes of Cameron and his Eton buddies take for granted " - the late great Bob Crow RIP.
Budfrog
Posts: 893
Joined: 11 Sep 2007, 02:19

Re: Privatisation

Post by Budfrog »

I am not saying there will be no benefits - the business may be run in a more professional manner making it a more secure place to work (for those that are left). However I, like many others, cannot understand why Royal Mail cannot continue to improve it's profitably and attract investment under public ownership whilst maintaining it's 'service' ethos.

What you really need to look at is the drivers behind the proposed change and they are based on corporate greed and fuelled by a Govt that needs to balance it's books. It gets pretty murky when you start to look at the Govt/Banks/RM Privatisation relationship and I've no doubt in my own mind that Moya Greene and her senior managers are looking after themselves and not Royal Mail in all of this.

All OPGs can do is provide support to the CWU and vote against privatisation to protect themselves and their terms and conditions.