The proposal to part privatise the Royal Mail is not viable. The only thing it will do is give a cash injection into the pension fund, and not even enough to cover the defecit.
The idea that TNT owning 30% will bring in true efficiency is not realistic. TNT's own Mail side in the UK is not efficient, LA has visited its sites and seen very wasteful oprerations. Any implementation of efficiency will be impossible with this proposed set up as there will still be a union based around a virtual monopoly. This means they can hold a gun to the nations head.
The result will be reduced services, higher prices and an abuse of monopoly. The Taxpayer will also pick up the bill for the pension scheme.
This is bad for the customer, bad for the taxpayer and bad for the country.
Break up and privitisation of the network is the only way forward.
For this reason the opposition must vote against. In this case this would not be a token gesture, it would defeat the government.
However Cameron may not wish to wound Brown any further, after all he wants top be fighting unelectable Brown on election day, any vote loss in parliament could see the PM ousted and a new Labour leadership installed.
LA
PS. If the Government feels only external investment can bring in efficiency, why have Leighton and Crozier been paid such high bonuses.
Also lets not forget 10 years ago when RM was making money, Brown as Chancelor took the money and also reduced payments to the pension fund. We reap what he sowed.
Showing posts with label Royal Mail. Show all posts
Showing posts with label Royal Mail. Show all posts
Tuesday, 24 February 2009
Wednesday, 21 January 2009
TNT withdraw credit from postal market
TNT Post part of the TNT group that Lord Mandelson has lined up to buy a major stake in Royal Mail is pulling credit lines.
Whilst Lord Mandelson attempt with the inept Chancellor to increase credit availability, his suitor for Royal Mail is doing the opposite.
It appears that over in Amsterdam TNT's insurers have decided they will only insure major blue chip corporates such as Utilities. TNT have therefore decided they will withdraw credit facilities from long term clients that have always paid on time and have no real risk.
This has effectively once again brought the postal network to monopoly status for the vast majority.
The question is what would happen if TNT did get its share of Royal Mail. Would we see thousands of companies lose credit facilities.
It also begs the question as to what TNT's own financial position is if it is totally in the power of insurers; Indeed can it afford to buy the Royal Mail?
LA is still intrigued to know why TNT has been chosen by Mandelson, LA has visited TNT Posts operations and seen the same inefficiency and old fashioned practices that the Royal Mail has like a cancer.
LA also note the Royal Mail "profits". Take off the £200m government bung and it made a loss.Remove the far far above inflation price hikes and it made a loss.
Why does Deutsche Post make 10 times the profit without fiddling the figures.
RM needs to change, see earlier blogs with the Royal Mail tag.
LA is annoyed.
Whilst Lord Mandelson attempt with the inept Chancellor to increase credit availability, his suitor for Royal Mail is doing the opposite.
It appears that over in Amsterdam TNT's insurers have decided they will only insure major blue chip corporates such as Utilities. TNT have therefore decided they will withdraw credit facilities from long term clients that have always paid on time and have no real risk.
This has effectively once again brought the postal network to monopoly status for the vast majority.
The question is what would happen if TNT did get its share of Royal Mail. Would we see thousands of companies lose credit facilities.
It also begs the question as to what TNT's own financial position is if it is totally in the power of insurers; Indeed can it afford to buy the Royal Mail?
LA is still intrigued to know why TNT has been chosen by Mandelson, LA has visited TNT Posts operations and seen the same inefficiency and old fashioned practices that the Royal Mail has like a cancer.
LA also note the Royal Mail "profits". Take off the £200m government bung and it made a loss.Remove the far far above inflation price hikes and it made a loss.
Why does Deutsche Post make 10 times the profit without fiddling the figures.
RM needs to change, see earlier blogs with the Royal Mail tag.
LA is annoyed.
Monday, 15 December 2008
Royal Mail is a Mess, plundered by Brown
The Royal Mail is a Royal Mess. The Hooper report merely clarifies the obvious. It does however appear to want to refuse to grasp the nettle. The abolishment of a Quasi Monopoly.
12 years ago the Royal Mail was an inefficient monopoly. It made a handsome profit, it paid into its pension fun. The fine Mr Brown then decided to steal all its profits, he also plundered its pension pot.
He decided that he would employ Messer’s Leighton and Crozier. The two new appointees rather than modernising this fine institution and preparing it for the new millennium, decided to dogmatically protect its monopoly, and by default strengthen the CWU.
So what has this left us: a lower service level, more expensive post, a strong and Ludite union, oh and huge losses.
Here is the Lord Allesley plan for the Royal Mail.
Break it up and privatise it!
This increases competition, creates efficiency, plugs the pension and gives greater service. At the same time it protects the Universal Service.
The plan looks like this.
Inputing to the system can be by anyone with a licence, TNT, UK Mail, you name it.
For delivery break the UK into regions, some rural, some urban. Obviously urban makes money, rural potentially loses.
Then bundle up the areas and sell franchises(the Royal Mail) for bundles. It works like this:
Whoever gets (for example) Greater London , also gets Highland and Islands. If you get Manchester you also get Cornwall.
Any company can bid for these bundles, they may pay, they may just offer to take on the pension deficit. In the tender process they not only agree to a fixed minimum handling fee per letter (preserve the Universal Service), they also put in their service levels such as time of latest delivery etc.
These contracts would be 5 years for starters, after that we would have real proof of delivery. Only those that give the service levels will get new licenses.
This way we introduce competition, we get customer service. Potentially the Treasury even makes money.
LA admits this plan needs to be refined. It is however the only way forward.
It is seamless to the consumer and painless for the taxpayer.
12 years ago the Royal Mail was an inefficient monopoly. It made a handsome profit, it paid into its pension fun. The fine Mr Brown then decided to steal all its profits, he also plundered its pension pot.
He decided that he would employ Messer’s Leighton and Crozier. The two new appointees rather than modernising this fine institution and preparing it for the new millennium, decided to dogmatically protect its monopoly, and by default strengthen the CWU.
So what has this left us: a lower service level, more expensive post, a strong and Ludite union, oh and huge losses.
Here is the Lord Allesley plan for the Royal Mail.
Break it up and privatise it!
This increases competition, creates efficiency, plugs the pension and gives greater service. At the same time it protects the Universal Service.
The plan looks like this.
Inputing to the system can be by anyone with a licence, TNT, UK Mail, you name it.
For delivery break the UK into regions, some rural, some urban. Obviously urban makes money, rural potentially loses.
Then bundle up the areas and sell franchises(the Royal Mail) for bundles. It works like this:
Whoever gets (for example) Greater London , also gets Highland and Islands. If you get Manchester you also get Cornwall.
Any company can bid for these bundles, they may pay, they may just offer to take on the pension deficit. In the tender process they not only agree to a fixed minimum handling fee per letter (preserve the Universal Service), they also put in their service levels such as time of latest delivery etc.
These contracts would be 5 years for starters, after that we would have real proof of delivery. Only those that give the service levels will get new licenses.
This way we introduce competition, we get customer service. Potentially the Treasury even makes money.
LA admits this plan needs to be refined. It is however the only way forward.
It is seamless to the consumer and painless for the taxpayer.
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