Mail sell-off 'could kill' post offices

[TrueBlueTerrier]

http://www.mirror.co.uk/news/top-storie ... -22654774/" onclick="window.open(this.href);return false;

Thousands of post offices face closure under Government plans to privatise the Royal Mail.

Campaigners fear the sale could strike a fatal blow to the current deal under which the Mail gives the Post Office vital business.

If Royal Mail switched to using private firms for items such as air mail letters and recorded delivery items, post offices would lose around £350million in commission, a third of their income.

Campaigners say many rural post offices, which provide a lifeline to elderly customers, would not survive - and the loss of income could threaten the entire 12,000-strong network.

Shadow Business Secretary John Denham said last night: "The business Royal Mail brings to the Post Office is vital to the future of local post offices.

"But the privatisation Bill does not set out any mechanism for guaranteeing this. The agreement could end the moment Royal Mail is sold."

His warning came as the Government prepared to this week continue its push to change the law and pave the way for the privatisation.

Under their plans, the Post Office network would remain in state hands, but up to 90 per cent of Royal Mail shares could be sold privately, with the remaining 10 per cent given to postmen and women.

Pm David Cameron and Business Secretary Vince Cable have so far refused to rule out selling the Royal Mail to an overseas buyer.

[subbie]

Can we say "Bollocks" on here? Cos John Denham talks a lot of it.

Subbie

[DGP1]

Can we say "Bollocks" on here? Cos John Denham talks a lot of it.

Subbie

Why? Do you seriously think that a private company will not try to branch out their business, if your local Spar/Tesco/Lidl are prepared to offer a service that is cheaper than the Post Office then they will.

[subbie]

And provide the same standards compliant with the legislation that the Regulator demands ? I don't think so.

If it was that easy how come the Supermarkets have not moved in before, how come those Supermarkets who once valued having a PO inside them, ditched them years ago.

Handling the mail at the retail end is not the same as selling a phone top up, there are legal standards to maintain.

Subbie

[Broxi51]

This may well be a little naive as I am only a postie and not senior management.

If I was sitting at the top of a privatised RM then I would be in talks with Asda/Tescos to open up
branches within their stores. I dont want to pay PO to clear them.
If I was sitting at the top of Tescos/Asdas then the
opportunity to do your shopping and then use our own PO to mail items all within the same area
would be a win win situation.
RM would still do a sweep of all major businesses to collect their mail. The rest of the UK population
doesnt matter, truthfully because it is about profit.
Smaller businesses can hand their mail over at DO's or take them to the collection points as they do now.
Non-business users in towns & cities can use their supermarkets or the pillar boxes.
You can now pay for postage online and print it off and attach. This would be good enough
for rural areas where a van driver/rural postie can pick them up for delivery.
It is all about cutting costs and to pay PO over 300 million a year is NOT cost effective.

[subbie]

Yes Brox

You are more than a little naive.

Its all been tried before, Asda's and Tesco's and others have all kicked PO's out of their stores, there is no money in it when compared to a rack of Dvd's or a Chemist section, and you are forgetting the Universal Service whatever becomes of Royal Mail this will still prevail and customers need universal access to it, it is regulated, standards of service is required, and it must be geographically spread, and then there is the Postal Services Act anyone who conveys a postal item has to be licensed, as for self service of postage on the net, well how does the customer get the item into the system? You wont be able to swan into a Post Office in the future and say take this item into the Royal Mail (privatised) system for me please, by the way I printed my own postage so you wont get paid anything!

The answer you will get will not be polite.

The real answer is that Post Offices will still have a major role to play, and access to them by Royal Mail will have to be paid for, trying to find ways around this will be false economy for Royal Mail, tarnish their brand, and open up a vacuum that competing mail operators will fill.

Subbie

[Broxi51]

Hi Subbie,
Thanks for your reply although I do still tend to disagree

Pay over 300 million to PO or 100 million to supermarket? You choose.
Rural PO's will be subsidised by the Govt and could be open to any courier firm (Small takings)
Supermarkets may have turned this offer down before but it is now a private RM who could subsidise small PO's
within supermarkets. Still works out cheaper.
Rural customers could use rural PO's or the delivery officer delivering their mail could pick up any outgoing mail from residence and introduce
into pipeline.
Im sorry but I dont see the PO as a big player.

[subbie]

What is it with this fixation on Supermarkets? There is nothing stopping RM from offering postal services to supermarkets right now. Which part of they aint interested does anyone not understand?

In the new world POL will be mutualised, that means Sub Postmasters will be in the majority and so will have the greatest say in how POL operates. It will not be in our interest to let RM cherry pick our Network.

Subbie

[Broxi51]

What is it with this fixation on Supermarkets? There is nothing stopping RM from offering postal services to supermarkets right now. Which part of they aint interested does anyone not understand?

In the new world POL will be mutualised, that means Sub Postmasters will be in the majority and so will have the greatest say in how POL operates. It will not be in our interest to let RM cherry pick our Network.

Subbie

It aint just anyone Subbie, its me thats fixated with supermarkets
I would have thought that the reason RM doesnt try to hook up with supermarkets is because currently we collect from PO's
and are paying 300 million a year for that honour.
Why in gods name would anyone that is FIXATED with profit as a private investor of RM be willing to carry on paying that when there
are cheaper options possibly out there.
I am not trying to annoy you, honestly.

[fishtank]

There is no doubt the rules will change if/when we are privatised.
All of those involved with Royal Mail from POL to ROMEC to Quadrant right through to the company that supplies us with our crappy uniforms should be nervous because from now on it will be the cheapest tender that wins and if that means tearing up old alliances or doing away with services altogether then that is how it will be.....that is a no-brainer.

[BELIAL]

And provide the same standards compliant with the legislation that the Regulator demands ? I don't think so.

Neither does anyone else, that's the point they are making
Profit is king

[subbie]

You are all assuming that the private sector wants this work, can provide the scale and reach of outlets needed to provide a National Network of collection points, and are willing to be regulated themselves, as required by the Postal Services Act.

Why do you think that the supermarket sector would want all that crap?

Now if you want cost effectiveness, how about us Subbies take on responsibility for delivering mail and collecting mail in a defined area? With no POL taking a cut, and our ability to provide staff and equipment in a more flexible way, I'm sure this would be an attractive proposition for a privatized RM.

Subbie

[DGP1]

Now if you want cost effectiveness, how about us Subbies take on responsibility for delivering mail and collecting mail in a defined area? With no POL taking a cut, and our ability to provide staff and equipment in a more flexible way, I'm sure this would be an attractive proposition for a privatized RM.

Subbie

Would that be delivering all mail for the area under the USO or just other PO items when it's economically viable?

[dvbuk55]

There is more than a little naivety for anyone who doesn't think privatisation is going to be anything other than the death knell - nothing will remain the same and business will ensure that the USO and one price goes anywhere is dead in the water quick sticks. I'm not surprised Plaid Cymru is making a song and dance - anywhere with more sheep than people will be lucky to see a postman more than twice a week.

[POSTMAN]

http://www.bbc.co.uk/news/business-11637989" onclick="window.open(this.href);return false;

The Post Office is to receive £1.3bn of extra funding over the next four years, Business Secretary Vince Cable has announced.

Mr Cable told the House of Commons that the funding would be used to reform the current network.

He stressed "there will be no programme of closures under this government".

Earlier this month, Mr Cable unveiled the government's plans to privatise Royal Mail, while the Post Office may be mutualised.

"Our funding will be used to reform the current network, to change the underlying economics, and so reverse the years of decline and secure its long-term future," Mr Cable said.

"The Post Office will be able to invest, improve its offer and win new revenue streams."