Case against Royal Mail privatisation

[TrueBlueTerrier]

http://www.thisisplymouth.co.uk/Case-Ro ... z2f9lqgg6p" onclick="window.open(this.href);return false;

I WRITE following the announcement by the Government that they are set to push ahead with privatisation of the Royal Mail. I hope to set out the case for the Mail to remain in public hands, challenge the lack of democratic action shown by our Conservative MPs and invite those individuals to debate this issue.

I do not write this letter with a political mandate because it isn't about party politics, it is about the Government moving ahead with the privatisation of Royal Mail with no public input, no mandate and a flawed policy dusted off from the 1980s.

Not one single poll of the public has backed the sale, the Conservative think tank the Bow Group have come out against it and the very same Minister pushing the sale (Michael Fallon) has previously stood against it. Locally we have met Oliver Colvile and despite friendly exchanges where his position was clearly exposed he has kept the party line. We have invited Gary Streeter to meet us and received a reply which can only be described as rude. Neither of these MPs has polled their constituents in Plymouth and the surrounding areas.

Neither has openly debated the issue with the 2000 postal workers in the city and neither has moved away from the ideological position taken by their leadership. With this in mind I ask in whose name are our MPs making these decisions in Westminster? This is a crass abuse of democracy and one that postal workers, their friends and families will not forget at the next election.

The Government (and our Conservative MPs) have been busy pedalling a lot of reasons why the Royal Mail needs to be privatised. It could be profitable they say. Well, it already is. The company made £404m profit this year alone and this has been rising year on year.

This money goes into the treasury and back to the people that it should do – The British Public.

'The Royal Mail is dying because of email'. Nothing could be further from the truth. Yes, letter traffic is dropping off but packet and parcel mail is through the roof and given the fact that it is more labour intensive the make-up of a postal worker's mail bag is as heavy if not heavier than ever.

We are told that we need to privatise to modernise. Again this is a myth. In 2010 the CWU and Royal Mail signed a major change agreement that has completely overhauled the business and the way we work. We did not go through this pain to simply hand over the keys to a profit driven owner with no care for the employees or the people that we serve.

Privatisation is the only way to gain investment for the company say our Government. An argument with more holes than a piece of Edam. Network Rail borrow Billions in bonds for example and why can't consideration be given to turning Royal Mail into a not for profit organisation with all profits reinvested to improving the services we provide?

Finally and perhaps most outrageously we are told that the Six Day Delivery service will be safe after privatisation because 'it is protected in law'. I believe that the majority of people are wise enough to see straight through this.

CHRIS WEBB
Divisional Representative
Communication Workers Union

[UnhappyGremlin]

[barbario]

Yes,because law's can be changed.

[NWpostie]

I couldn't have put it better myself

[Red Robbo]

I hope Chris sent a copy to the Labour Party because their not going to undo Royal Mail privatisation, then again it will be at least 10 years before they are ever in power and we would have got used to it by then.

[WHITEANT]

But the 6 day delivery can only be changed by the two houses ,what a safeguard that is !!!!!!!

[Brain Fury]

But the 6 day delivery can only be changed by the two houses ,what a safeguard that is !!!!!!!

So what would safeguard the USO?

[TrueBlueTerrier]

But the 6 day delivery can only be changed by the two houses ,what a safeguard that is !!!!!!!

So what would safeguard the USO?

Nothing in reality could safeguard the USO completely - However in every situation if everything was the same except ownership it would be politically more difficult to "water-down" the USO if we remained in Government hands.

[UnhappyGremlin]

But the 6 day delivery can only be changed by the two houses ,what a safeguard that is !!!!!!!

So what would safeguard the USO?

As Teebs said, nothing can really. I think it will go eventually, no matter what.
But, if we remain publically owned, it will take longer for the process to start, and longer for the obligation to be wiped out.
Privatisation will bring the process forward exponentially.

[WHITEANT]

The government would sell there grannys

[UnhappyGremlin]

But the 6 day delivery can only be changed by the two houses ,what a safeguard that is !!!!!!!

Apparently not.
Can be done with secondary legislation.

[Brain Fury]

But the 6 day delivery can only be changed by the two houses ,what a safeguard that is !!!!!!!

So what would safeguard the USO?

Nothing in reality could safeguard the USO completely - However in every situation if everything was the same except ownership it would be politically more difficult to "water-down" the USO if we remained in Government hands.

Really? Given that it would be a political decision in any case. Can't see it makes any difference - it will be difficult for the Government whoever owns the business.

[borders]

well there is no case against Privatisation now , its official from noon today you can apply on line for shares .......

Reference: P/2013/326

Date: 27 September 2013



Royal Mail Share Offer

Expected Price Range and Offer Launch



Following the announcement by Her Majesty's Government ("HM Government") on 12 September 2013 of its intention to proceed with an initial public offering (the "IPO" or "Offer") of Royal Mail plc ("Royal Mail" or the "Group"), Business Secretary Vince Cable today announces the expected Offer price range and the commencement of the Offer for institutional and retail investors once an approved price range Prospectus is published today containing full details of the Offer.



Offer Highlights

· Expected Offer price range set at 260p to 330p per Share, implying a market capitalisation on Admission of between £2,600 million and £3,300 million.

· HM Government intends to dispose of a majority of the existing Shares, taking into account Shares sold in the Offer and the 10 per cent. of Royal Mail to be made available for free to around 150,000 eligible UK-based Royal Mail employees at or around the time of Admission under an employee free Shares offer (the "Employee Free Shares Offer"), which is separate and in addition to the Employee Priority Offer referred to below.

· The Offer consists solely of existing Shares being sold by HM Government.

· The Offer comprises between 401 million Shares and 522 million Shares, representing between 40.1 per cent. and 52.2 per cent. of Royal Mail's share capital on Admission, excluding Over-allotment Arrangements (the "Base Offer").

· Shares representing up to 15 per cent. of the Base Offer are also being made available pursuant to Over-allotment Arrangements.

· Following the Offer, HM Government's holding in Royal Mail is expected to be between approximately 37.8 per cent. and 49.9 per cent. assuming no exercise of the Over-allotment Option and between approximately 30.0 per cent. and 43.9 per cent. assuming exercise in full of the Over-allotment Option.

· Institutional Offer bookbuilding commences today, and is expected to close on 8 October 2013.

· The Retail Offer opens later today. Individuals can apply in the Retail Offer through participating Intermediaries, or direct to HM Government online (at http://www.gov.uk/royalmailshares" onclick="window.open(this.href);return false;) or by post. The last date for the receipt of applications by Intermediaries and by HM Government's receiving agent is 8 October 2013.

· Pricing and allocations are expected to be announced and conditional dealings in the Shares on the London Stock Exchange are expected to commence on 11 October 2013.



Institutional Offer

· The Offer includes an offer to institutional investors in certain jurisdictions (in the UK and elsewhere outside the United States under Regulation S and to QIBs in the United States in reliance on Rule 144A) (the "Institutional Offer").

· HM Government currently envisages that around 70 per cent. of the Base Offer will be allocated to institutional investors.



Retail Offer

· The Offer also includes an offer to members of the public located in the UK (the "Retail Offer"), which includes a priority offer to eligible Royal Mail employees located in the UK (the "Employee Priority Offer").

· Members of the public can apply through stockbrokers and share dealing providers who are participating as Intermediaries, who will apply for Royal Mail Shares on behalf of their clients. A list of the firms acting as Intermediaries for the Offer can be found at http://www.gov.uk/royalmailshares" onclick="window.open(this.href);return false;.

· Members of the public can also apply online in the Retail Offer from later today at http://www.gov.uk/royalmailshares" onclick="window.open(this.href);return false;, where they can find further information about the Offer, including the full Prospectus and Summary Prospectus. For those without internet access, application packs will be available in around 1,500 Post Office branches nationwide from Monday, 30 September 2013. Post Office branches stocking application packs can be found using the search tool at http://www.postoffice.co.uk/branch-finder" onclick="window.open(this.href);return false;, or by calling the Retail Offer helpline on 0330 123 0147.

· Minimum application size in the Retail Offer is £750 for members of the public and £500 for eligible Royal Mail employees in the Employee Priority Offer.



Further Information

· Royal Mail's implied dividend yield for the year ended 31 March 2014 would be between approximately 6.1 per cent. and 7.7 per cent. on the basis of the expected Offer price range per Share above and notional full-year dividend of £200 million intended to be proposed in respect of FYE 2014 (the amount Royal Mail believes it would have proposed if the Company had been listed throughout FYE 2014).

· The 10 per cent. stake in Royal Mail to be made available free to eligible employees is valued at between £260 million and £331 million based on the expected Offer price range per Share above.

· Each of Royal Mail (180 days), HM Government (180 days), and the Directors of Royal Mail (365 days) have committed to lock-up arrangements post Admission, which are subject to certain customary exemptions including a waiver by the Joint Global Co-ordinators.

· Pricing and allocations are expected to be announced and conditional dealings in the Shares on the London Stock Exchange are expected to commence on 11 October 2013.

· Admission to the premium segment of the Official List and unconditional dealings in the Shares on the London Stock Exchange are expected to occur on 15 October 2013.

· It is expected that following completion of the Offer, the Company will be eligible for inclusion in the FTSE UK Index Series at the quarterly review in December 2013.



Business Secretary Vince Cable said:

"Today is an important day in the life of Royal Mail: people can now apply to buy shares in this iconic British brand.

"This will give Royal Mail access to the private capital it needs to modernise, as envisaged under successive governments, and enshrined in law by Parliament two years ago.

"We have already committed to give eligible Royal Mail staff a real stake in the company by giving them 10 per cent of company shares for free.

"Now the sale of Government shares will give others a chance to have a real stake in this important company and we are encouraged by the interest shown by potential investors so far."



Moya Greene, Chief Executive Officer of Royal Mail, said:

"Royal Mail has a unique place in the UK and that will not change as we move into the private sector.

"We will now be better able to compete in what is a fast changing and intensely competitive market.

"I'm delighted our people will own a meaningful stake in the company and that the public now have the opportunity to own a share in our future as well."





Enquiries



Department for Business, Innovation & Skills / Shareholder Executive

Aileen Boughen

Phone: 020 7215 5972

Email: aileen.boughen@bis.gsi.gov.uk



Josh Coe

Phone: 020 7215 5943

Email: josh.coe@bis.gsi.gov.uk

[borders]

I think they hope to have it done and dusted by Oct 15th , a day or so before we know the result of the ballot !! so its a ballot to keep our terms and conditions in a privatised company ..... I get the feeling this may well turn into a damp squid , any decent offer by RM will now seal the deal ??

[TrueBlueTerrier]

But the 6 day delivery can only be changed by the two houses ,what a safeguard that is !!!!!!!

So what would safeguard the USO?

Nothing in reality could safeguard the USO completely - However in every situation if everything was the same except ownership it would be politically more difficult to "water-down" the USO if we remained in Government hands.

Really? Given that it would be a political decision in any case. Can't see it makes any difference - it will be difficult for the Government whoever owns the business.

Yes it will be difficult in either case. But when its a Government organisation that wants a Polictical decision made its a lot harder to make a case on its own. When its mainly a privatised business they will have the backing of the shareholders and will therefore have more resources, (and cash) to lobby the government.

I am surprised I had to explain that. Still its a moot point now.