Plenty of examples of that, c y b -- see public service pensions, welfare system, education, pensioner benefits, infrastructure projects galore, where the government of the day will prostrate themselves to win votes or at least curry favour with the voters, or voter groups, for the true bill and cost to be 'deferred' until the children of the beneficiaries are the ones that foot the bill.
Royal Mail Shares
LHS - Member
Keeping the Royal Mail in its current form is unsustainable and anti-competition
Anti-competition? Are you under the impression that other carriers want to create a mass-volume, universal, largely unprofitable low-price mail service? Or for that matter, that other carriers have been unable to set up in direct competition for the desirable and profitable business? They have a monopoly only because they do something nobody else wants to do.
National mail is an essential service, national infrastructure is best nationalised because it's essential and because so much of it will always be unprofitable. But the trouble is some people insist on considering its value in terms of profit rather than in terms of service delivery, which is obviously false- mail supports business, the real value is in the contents not the stamps.
Here is the "official" view:
Still cant see why it will be cheaper for RM to access funding. It seems far more of an issue of competing for scarce government resources. This doc (on quick reading) seems to suggest that the RM need money for modernisation (true) but that has a lower priority that other gov projects, hence the need to sell it off so that it can raise private funding. That seems a subtle but important difference to how Uncle Vince spelt it out earlier to me!
for example if you happen to be at work monday-friday 9-5 when they are delivering whats the bet youll have to start paying a fee to pick it up from the post office etc
not my experience living in either Holland or Germany, both of whom sold off their postal services years ago.
Kind of a bonus that stuff sent via DHL I collect from the post office not far from work, rather than some out of town depot 20km away.
And DP-DHL have automated "Packstations" in pretty much every town nationwide. Send or receive parcels via them 24/7/365. Cash on Delivery works on them too. I imagine UK might be more inclined to do deals with Esso/Shell and other locations for 24/7/365 parcel drop off and collection.
Loads of parcel shops too, for several couriers. One of my local ones happens to be a local bike shop None have charged me an extra collection fee. UPS / GLS / FedEx / etc. all price that in to their fees.
And as for fees? Well DP-DHL charge a staggering €2 admin fee for their part of CoD. Which is drastically less expensive than RM's £8 admin fee to automatically collect duty+VAT on imports. (OK these aren't identical, but are close enough admin wise).
We can't afford it. The railways are costing us more now because we're seeing the true cost of what it takes to run a railway, especially one that was underfunded for decades by subsequent governments and has to play catch up in getting back upto scratch. Before privatisation the woefully inefficient and archaic network was being subsidised by ever increasing buckets of cash from the taxpayer - money down the drain and completely and utterly unacceptable.
The RM makes most of its money from commercial operations and not letters and our ebaying (the postman pat arm of its operation), and in that arena they're competing directly with the TNT's, Fedexs, and plethora of other couriers out there. It simply cannot compete under public ownership.
Where's this idea come from that just cause something is public owned its ok for it to be run any less efficiently and effectively than any private corporation that has to earn and justify its existence?
wobbliscott - Member
Before privatisation the woefully inefficient and archaic network was being subsidised by ever increasing buckets of cash from the taxpayer - money down the drain and completely and utterly unacceptable.
Yes, it's much better now that we pour twice as many bucketfuls down the drain, with extra bucketfulls to line corporate pockets, while ticket costs soar.
This truly is chaos. Over 400 million profit last year but need to be sold because of th e pension deficit. I work as a postman and although letters have dropped we are carrying more because jobs have gone and rounds have been broken up and added to others. Believe me royal mails packet and parcel business is incredible and that's not even taking parcelforce into consideration. At the moment the only way it's unsustainable is down to the pension black hole which was created please remember when royal mail took a holiday from their share of the contributions for 14 years. Yes 14 years of employer contributions lost. Someone should be jailed. I actually like my job but the management of this company is the pits. The free shares cannot be touched for 3 years whether they are worth anything or not. We have been told our contracts cannot be changed for 3 years,this I do not believe. Sorry times
I still treasure my free HBOS shares. Got em for nothing, and now that is what they are worth, bargain!
Well £400 million pounds sound like a lot of profit and Parcelforce may be an impressive organisation BUT its a drop in the ocean compared with FedEx and UPS and other competitors. FedEx and ups has fleets of aircraft larger than most of the worlds airlines. They have lorries and trucks in major towns and cities all over the world. Billions of pounds of investment is needed if Parcelforce and the RM is to succeed and thrive in the future. We can't afford that level of investment and under public ownership it would not be long before the RM would having to be propped up by the government. Anyway I believe the RMs recent profits have been boosted by property sales, so not exactly sustainable.
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