In the latest sale of the British peoples assets, the Government sold off 62% of Royal Mail based on a bargain basement valuation of 3.3 billion…so much for paying “experts” to give a sale price valuation…..better to have thrown a dart at the board with the valuation prices set between 3 billion and 10 billion, which was the higher estimate.
In Brazil, when the government sells the peoples assets, it intelligently tends to retain 51% of the action: .ie Petrobras. The stupidity of the Thatcher legacy is that the assets of the British people are slowly being sold off with many of those companies being utilities.
Utilities generally operate as a monopoly and are therefore a licence to print money: Water, Electricity, Gas, Mail, etc., etc.; with most of the utilities ending up in the hands of foreign limited companies, foreign hedge funds or foreign government owned companies: never doubt the ability of a group of companies in the same field to move prices up in the manner of a rat pack, illegal though it may be…prove it !
Thus will the Royal Mail’s future destiny lie, with three price hikes already in the pipeline, profitability can’t ever fail; along with such cost cutting Canadian practices as giving new housing developments a Hobson’s choice of whether they get no home delivery or the people in the development have to collect their mail from street side mail boxes for each new development area; paying workers for their shift and not by the hour i.e. a delivery person would receive, say 8 hours pay even if they finished their round in 6 hours…this will lead mail delivery persons to delay delivery to certain streets to say 3 or 4 days a week instead of the six days at present to allow them to finish their shift quicker – not permitted, but indubitably done in Canada !! The weekly days for delivery will almost certainly be cut from six days to five etc., etc.!!
There will not be any choice for the majority of people; private mail companies will just cherry pick the most profitable routes with the highest volumes. Thank you Maggie !
- Royal Mail shares rise again as Panmure puts £5.7bn valuation on business (theguardian.com)
- Record View : Stamp of shame over Royal Mail sell-off (dailyrecord.co.uk)