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Guest Post: Smart institute for policy. The Royal Mail.

As it stands the Royal mail is currently making a loss of more than one million pounds per day.

This represents a significant drain on the tax-payer and means that the loss-making, government subsidised Royal Mail; inherently suffocates out any worthy competitors from the market place by benefiting from being able to sustain uncompetitive business advantages through state funding. In real terms, for the UK populace it means, not only an increased tax burden- but the a lack of opportunity to benefit from alternative private sector enterprise offerings which could more adequately service customer postal needs.


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The Royal Mail should announce it is to desist from trading at some stated point in the future to provide private sector investors and entrepreneurs enough time, as well as adequate financial incentive to formulate a business model and strategy going forward, which can better benefit the consumer than the current status quo is able to.


Royal Mail postal branches have been being shut down for quite some time. We hear stories in the press reporting wherein "some little old lady" is complaining that she has to walk miles to visit her "local" branch. This is true especially for regional and rural locations.


A more efficient, profit driven, private sector company will naturally emerge to provide better geographical coverage and service utility. As long as the Royal Mail adjusts pricing in areas in which it shares the market with said businesses it ensures it does nothing to stifle or freeze out its rivals growth - then we can expect to see a wealth of innovation and superior standards of service emerging out of private enterprise across the U.K.


Author- David Ian Bennett - Director of the smart institute


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