Wednesday, 10 July 2013

Ten per cent is not enough

HM Treasury has been seduced by the success of the recent flotation of the Belgian Post Office into pushing for the short-term gain of a ninety per cent sell-off of Royal Mail, according to leaks. The long-term benefit to the organisation and customers alike of real co-ownership (no doubt pressed by Vince Cable and Jo Swinson) is being down-played. I note that the minister in his statement today has still not committed to the proportion of the shares which will be floated on the market, except that it will be a majority.

There will be a future for the Mail, as parcel deliveries are buoyant, making up for the decline in personal letters. Vince Cable restated the government's commitment to the Universal Postal Service.

Post Office Limited, which was separated from the Mail some time ago, may well be mutualised in the future.

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