“It is our view that the Labour government has masterminded the unnecessary imposition of competition, backdoor privatisation and the undermining of all postal services.” said the CWU….a union affiliated to Labour!
The National Audit Office has released its report into the partial privatisation of Royal Mail.
The Privatisation of Royal Mail
The Department was successful in floating Royal Mail. But its approach was marked by deep caution, the price of which was borne by the taxpayer.
The BBC has given this headline status and has been giving the lions share of coverage to the critics, Labour in particular….we do get defenders of the share price but they do not balance the critics.
That aside there is one glaring hole in the BBC’s coverage gives Labour plenty of airtime to say things like this:
The government “botched” the privatisation of Royal Mail, short-changing taxpayers by hundreds of millions of pounds, by selling shares too cheaply, Labour has said.
….and yet, once again, as with mine closures, and the economic crash, the BBC conveniently forgets the history and context behind events…when they are uncomfortable and embarrassing for Labour….or so it seems.
Chuka Umunna was given free rein by Sheila Fogarty (13:09ish) claiming that ‘Labour would never have privatised Royal Mail……it doesn’t make sense…the government has privatised the profits and nationalised the debts’
He went on….‘The taxpayers have been disgracefully shortchanged and are owed an apology…ultimately the person who is responsible is the Prime Minister and he should apologise.’
[Well…when we get an apology from Gordon Brown for his ‘ultimate responsibility’ for the economic apocalypse he left us with perhaps Cameron might consider one.]
However….‘Labour would never have privatised Royal Mail?‘…em… they had every intention of doing so.
Not only that but their imposition of a disastrously strict regulatory regime brought Royal Mail to its knees….from a profit making, pension paying success, it became an economic disaster zone having to go to government with a begging bowl.
And there’s always room for Labor’s Margaret Hodge to add her ‘independent’ assessment on the BBC:
Margaret Hodge, chair of the Public Accounts Committee (PAC), said the sharp rise in Royal Mail’s share price since the sale showed “the department had no clue what it was doing.”
What about that glaring hole in the BBC’s coverage though?
Labour now says that Royal Mail was sold off too cheaply…..the Public are shortchanged and Cameron must apologise.
Would that be the same Labour party that had already, in effect, privatised the Royal Mail for free, giving its most valuable assets to its private competitors at prices, enforced by Labour’s Regulator, that meant Royal Mail made huge losses as it was forced to deliver competitor’s mail at below cost.
What did the bosses at Royal Mail think?
“regulation gone mad”…the new price regime would “choke the company” and the universal one-price service.
What did the postal worker’s union, the CWU, think?
“It is our view that the Labour government has masterminded the unnecessary imposition of competition, backdoor privatisation and the undermining of all postal services.”
You might think that was relevant to the debate today….but not a single mention on the BBC today of this rather embarrassing history for Labour.
Or that Labour ‘masterminded’ putting 60,000 postmen and women on the jobs scrapheap…..
Modernisation – Royal Mail is needs massive upgrading and staff cutting
It’s already happening under public ownership. Over 60,000 jobs have been lost from Royal Mail in the last five-six years with more disappearing as machinery and delivery revisions are brought in.
Labour had already privatised Royal Mail…it allowed private companies to asset strip and cherry pick the best bits of Royal Mail’s business for peanuts….putting it and the universal service in jeopardy and destroying a once solvent pension fund…now a very hefty charge on the public purse.
And Labour claims the sale was rushed to get in ahead of industrial action…so that would be strike action by the CWU union, affiliated to Labour, which forced the ‘premature’ sale of shares at a low price…costing the tax payer, god bless ’em, millions? Hmmm..dodgy argument there I might have thought.
So who is responsible for ‘giving away’ Royal Mail and ‘nationalising the debts’?
First and foremost it’s the Labour Party in reality.
Just a shame the BBC isn’t doing its job properly and challenging their own narrative rather than allowing them to grandstand as the defenders of the Public Finances….LOL!
For a more balanced and indepth look try this site for a view on the privatisation:
Taking Stock…Royal Mail’s IPO in HIndsight
It’s always a bad idea to compare ‘independent’ sites with the BBC…they are all too often far better at providing indepth information and analysis….you realise just how bad the BBC can be despite the massive resources.


