5 Ways RM’s Privatisation Is Going To Screw You

[TrueBlueTerrier]

5 Ways Royal Mail’s Privatisation Is Going To Screw You In The Long Run

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Royal Mail’s shares are up around 70% since their debut last month. And if you’re one of the lucky people who got in on the initial subscription, you're probably feeling pretty good right now. However, Royal Mail’s privatisation is still going to screw you in at least one of the 5 following ways.

1. You’ll Pay Higher Taxes

It’s no secret Royal Mail was sold off for far too little. JP Morgan reckoned it could be worth up to £10bn with most other estimates putting its value somewhere £6-7bn.

With a sell-off of this nature the government has one chance to get it right. By not getting full value, it means government spending will have to come from more taxes or more debt. Got shares and don’t care? Well you’re still going to get screwed.

2. Businesses Will Pay More For Services

The Royal Mail currently offers a range of mailing products and services aimed at businesses of all sizes. Some of these such as franked mail can save businesses up to 34% compared to stamps.

Many of these services offer much higher discounts than those found in other parts of the world. As a private company Royal Mail will be pressured to cut these discounts. Not a business owner and think businesses should pay their own way? Oh, you’re still getting screwed.

3. You’ll Pay More To Send Mail

So businesses will pay more but I'm’m sure you’ve never had anything mailed to you from a business right? Even if you don’t get things delivered by Royal Mail you'll still pay more. Studies have shown that privatised post companies on the continent enjoy profit margins roughly double those of Royal Mail. The only way to achieve this is either to raise prices (either stamp increases or eliminating cheaper services such as 2nd class mail) or the following.

4. Postman Pat May Be Out Of A Job

Royal Mail as a private company will be under pressure to grow profits. If the public protest price rises, it may leave them no choice but to cut staff and services to less profitable areas. Postman Pat could soon find himself out of the job.

5. You’re Already Going To Pay More This Christmas

Seems price rises already mean the average British household can expect to pay £18 more this Christmas to send gifts.

[El-Bandito]

No sh*t Sherlock.