Brighter Future for Royal Mail

The transfer of the Royal Mail moved a step close this week with the formal announcement being made of the Government’s intention to offer for sale shares in the Company and have them traded on the London Stock Exchange.

I think this is great news for users of the Royal Mail as it means the Company will now find it much easier to raise capital to grow and develop the business. No longer will it have to compete with schools and hospitals when it comes to trying to get the money it needs. The universal postal service is protected is statute and the service will continue to be regulated by Ofcom just as it is now.

It is good news for the employees too. I can not understand why they are contemplating strike action. 10% of the Company is to be made available to the employees under a free share offer.

There is, perhaps understandably, still some confusion about the difference between the Post Office and the Royal Mail. They are two separate Companies and the Post Office is not being sold. Of course most post offices are already owned and run by private individuals already.

With the advent of the internet and more and more people using mobile telephones, texts and emails to communicate the Royal Mail has faced very significant challenges. It has to change and modernise in order to survive, It will find it much easier to do so in the private sector.

I was interested to note that shortly after the Royal Mail announcement it was announced that Twitter was to be sold. Whilst the expected prices are only estimates Twitter is likely to be worth over double the Royal Mail!