Sell-off is 'only way to save Royal Mail'

[Big Daz]

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Sell-off is 'only way to save Royal Mail'
Royal Mail must be privatised to preserve the universal postal service, a government-commissioned report will say next week.

By Andrew Porter, Political Editor
Published: 7:30AM BST 04 Sep 2010


Only private investment can save Royal Mail and the Government must act swiftly before potential bidders are put off, according to the report's author, Richard Hooper Photo: ALAMY Falling custom and a £10 billion pension black hole threaten the survival of the publicly owned postal service, it will say.

Only private investment can save Royal Mail and the Government must act swiftly before potential bidders are put off, according to the report’s author, Richard Hooper, a former deputy chairman of Ofcom, the communications regulator.


His recommendations will revive the political row over whether foreign companies should be brought in to save Royal Mail.

Ministers will use the report to argue that the case for privatising part of the service is even stronger than when Lord Mandelson introduced a Postal Services Bill proposing a one-third sell-off.

The Coalition intends to introduce its own version of the Bill which was eventually dropped by Gordon Brown in the face of backbench and union opposition.

Labour is now likely to oppose privatisation. The Liberal Democrats opposed the Mandelson Bill and the party’s backbenchers will have to decide whether they back their Coalition minister on the issue.

Mr Hooper, who was commissioned by Lord Mandelson to review the future of Royal Mail, has produced an updated version of his report for David Cameron. He will warn that the pension deficit must be addressed if the universal postal service is to survive.

Some Royal Mail supporters have argued that the long-term decline in postal volumes can be eased by the rise in parcel business as more people shop on the internet. Mr Hooper believes that confidence is misplaced.

His report details a record decline in postal volumes of 7.3 per cent in 2009-10 and he argues that such falls could become the norm for the next five years. In order to deal with the pension deficit, restructure the business and ease the potential burden on public spending, Mr Hooper will say that it is more essential than ever that private investment and corporate financial expertise is brought in.

[Broxi51]

His report details a record decline in postal volumes of 7.3 per cent in 2009-10 and he argues that such falls could become the norm for the next five years. In order to deal with the pension deficit, restructure the business and ease the potential burden on public spending, Mr Hooper will say that it is more essential than ever that private investment and corporate financial expertise is brought in.

Strange that Since D2D became live mail and my average per week is 4, I find that my mail has risen considerably.

Perhaps Hooper could try walking instead of talking and see how little mail we deliver nowadays

[Lounge Lizard]

"Only private investment can save Royal Mail and the Government must act swiftly" - so if the Government can find countless billions of pounds to fund unwinnable illegal wars why can't it find some money for investment needed in a vital public institution at home ?

"His report details a record decline in postal volumes of 7.3 per cent in 2009-10 and he argues that such falls could become the norm for the next five years." - and why would anyone want to invest in a business declining like that ?

[bedfordrl]

"His report details a record decline in postal volumes of 7.3 per cent in 2009-10 and he argues that such falls could become the norm for the next five years." - and why would anyone want to invest in a business declining like that ?

Because it is lies!.

Post take over the mail levels will have risen dramatically ,fancy that!.

Many will remember when the gas/electric/water and telephones were sold off, all were mocked for their inefficiencies and sold off cheap and then made mega profits and are mostly owned by foreign companies now.

[baldrick]

The only trouble with trying to sell something off is you need someone willing to buy it.

An asset stripper might well be willing to buy RM to get hold of its' property sites to sell off.

[DGP1]

The only trouble with trying to sell something off is you need someone willing to buy it.

An asset stripper might well be willing to buy RM to get hold of its' property sites to sell off.

That's already happened, they've been selling everything off that RM own to make their bonus targets (I'd really need to go through the balance sheet but I can't really be bothered at the minute).