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Post Office Privatisation

Posted by Diane Abbott, MP for Hackney North and Stoke Newington, at 15:25, Fri 26 June 2009:

Government plans to part-privatise the Royal Mail, including the Post Office, are said to be going ahead despite protests from the public and backbench MPs. The Royal Mail has been in trouble for years. Increased use of email and telephones, the loss of contracts such as the TV License and a huge pension deficit, means that Royal Mail is struggling.

But for many of my constituents the Post Office is a vital part of the high street. Many elderly people rely on a regular visit to the Post Office. Post Offices provide a personal and friendly service which we don’t necessarily get elsewhere. Another big feature is that Royal Mail gives universal service commitment – they charge the same for delivering a letter to the top floor of a high rise block, or a cottage in the middle of the countryside as they do for an easy to reach terraced house.

The Conservatives and the Liberal Democrats are urging the Government to push through part-privatisation because it will give the Royal Mail cash to modernise the business. Those people against privatisation argue that Royal Mail is one of the few companies left that genuinely put the needs of its customers first. Selling bits of Royal Mail off would put profits ahead of people.

So is part-privatisation the answer? Will selling a chunk of this public company save it in the long run? Or should we continue with almost 400 years of a public Post Office?

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