Royal Mail privatisation is necessary

Business

  • Author Vern Bentley
  • Published June 23, 2011
  • Word count 358

The Royal Mail has been losing business steadily over the past several years due to changes in the way that people are communicating, and decreased satisfaction with the service. Financial mismanagement of the government-owned service has resulted in large deficits for the company. In January 2011, the Postal Services Bill went through the House of Commons.

The Postal Services Bill outlines a number of proposals to modernize the Royal Mail service and post offices nationwide. It remains adamant about the need for universal postal service with affordable prices. It also calls for a change in the way the public company is financed. Royal Mail has traditionally been owned and operated exclusively by the UK government, but the new bill will change this. It proposes to privatize a portion of the company in order to attract new funding sources. The pension deficit, worth billions of dollars, will be handed over to the government.

Although the Royal Mail will be privatized, there are no plans to sell post office branches within the UK. They will remain owned and operated by the government. Instead of closing offices throughout the country, as in the past, this government plans to invest over a billion pounds into the system. In the future, the post offices will largely be run by employees and local communities.

Edward Davey, the minister for Postal Affairs, argues that the publicly-run postal services need to be modernized and made more efficient. He calls for a complete overhaul of the system that would bring in new ideas, modernization, and better use of resources. Along with private financing, he also encourages increased public funding of the traditional letter and parcel delivery services. Through these various plans, the UK government hopes to create a secure future for this valued public institution.

Much of Royal Mail’s future depends on private investment, and decreased government management. In order to become a top postal operator again, the company needs to find ways to innovate and improve efficiency. In the new market, old methods of managing and running the postal services simply are sustainable. It will require significant improvement to bring it into this fast-paced digital age.

Companies like Parcelforce, UPS, TNT, and DHL, have become successful by offering the best and most efficient parcel delivery features. If you’re interested in locating a courier service, try myParcelDelivery.comTM. This website gives you the ability to conveniently search top couriers within the UK, and compare price quotes.

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