Save Our Royal Mail
Ministers have been accused of rushing to sell Royal Mail "on the cheap" as the firm is set to rake in billions from selling
Privatising Royal Mail fires the starting gun on the race to end the universal postal service as we know it. A privately owned Royal Mail will not want to maintain loss making rural deliveries. Once the new owners of Royal Mail, armed with a new obligation to maximise shareholder returns, look at the areas of the business that lose money, they will want to act.
Vince Cable has detailed what the government wants to do with our Royal Mail. For him in an ideal world the public will line up in droves to buy a few shares in the business they already own. In the real world that will not happen. Instead, major financial institutions such as pension funds will be encouraged to buy chunks of the business. The government estimates that the 60% of Royal Mail that they want to sell will be worth around £2.5billion. It's no small amount and of course those who speculate with large sums of cash will want to be assured that their investment will grow at a satisfactory rate.
A major privatisation is about to take place. One would think this would give the government something to crow about but strangely the opposite is true. The government plans to flog off the Royal Mail but it is not very keen to talk about it.