Mehdi's Morning Memo: Privatising The Queen's Head

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PRIVATISING THE QUEEN'S HEAD

Margaret Thatcher in the 1980s resisted selling off Royal Mail because she was 'not prepared to have the Queen's head privatised'. Well, once again, Cameron and co are going beyond Maggie and her friends.

"Coalition to launch Royal Mail sell-off"

is the splash headline on the front of the FT. The paper reports:

"The government will announce its plan to sell a majority of the world's oldest postal service in the most ambitious privatisation since John Major sold the railways in the 1990s. Vince Cable, business secretary, briefed the cabinet on the plans on Tuesday. It means the coalition is within sight of a goal that has eluded governments over 20 years.

"...The announcement will launch a process lasting four to six weeks that could value the company at up to £3bn.

"The public will be able to buy shares in a retail offer, though the marketing will be lower-key than the "Tell Sid" campaign for British Gas in the 1980s.

The BBC reports that anti-privatisation campaigners point out

"... that Royal Mail is now profitable, demonstrating that it can be a successful business without privatisation.

"Campaigners are also concerned that service guarantees, such as deliveries on six days of the week, could be jeopardised, although the government says the universal service is guaranteed by law."