Post office privatization..... thoughts?

[VWD]

Government isn't investing in broadband, it's handing hundreds of millions to BT to build it's own network

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Don't forget that after yonks, you cn get a phone line from the Post Office.

[Dr Zoidberg]

So, if you want shares you need to apply in the next week or so, and it's already oversubscribed. What do we reckon? Quick and easy profit or a fast way to lose 25%?

[VWD]

Dr Z- I wouldn't .If RM live up to expectations, your letter will get lost .

[gadgetman]

Shares will plummet once they strike

[charles]

prices to post a letter or parcel have been continually rising in recent years anyway. it costs £1.20 to post a letter already! 

 

I don't think we will really notice any difference long term. there would be price hikes anyway.

Edited 30 September, 2013 by charles

[expostmanpat]

The service will get worse, workers strike about how against it they are, but happily take the upto £2k they'll pocket.

Bit pointless striking about something that as already happened and can't be reversed, I think if you get your facts straight you will find that the CWU is  balloting for IA due to the 'strings' attached to a 3 year pay deal, such as a cap on pension growth, a legally binding contract NOT to strike for the next 3 years etc etc

[Gwilo]

The devil will be in the detail of how they'll privatise it, and how they expect it operate afterwards

 

The Swiss postal service rocks and could/should be seen as a model  - you can do stuff like open your physical mail online

How the hell does that work?

[domhnall]

prices to post a letter or parcel have been continually rising in recent years anyway. it costs £1.20 to post a letter already! 

 

I don't think we will really notice any difference long term. there would be price hikes anyway.

 

in some rural areas private companies add a 500% premium to deliver, once in the private sphere expect RM to follow suit. Then it will be 3 days a week only delivery

[snow_muncher]

How the hell does that work?

 

Its called Swiss Post Box

 

They post a photo (taken automatically by the sorting machine) of all your mail envelopes and packages online (highlighting sender info)

You decide what you want opened

 

The contents are then scanned and emailed to you

 

you can also have items redirected to where-ever you're staying

 

All at extra cost of course

 

Swiss Post domestic delivery options

[jlwah]

I reckon it's probably worth a punt, but primarily for the dividend. But having said that, the wait for the divi next year could be a bumpy one.

 

As for whether it's a good or a bad thing only time will tell. The letter delivery side will get worse but only because volumes are declining pretty steadily and the importance of hand delivered mail is reducing. I don't receive bank / card statements in the post anymore, I send all my invoices by email and Christmas is pretty much the only time I post letter sized items in any volume.

 

Parcels is obviously where all the growth will come from and it probably makes sense for the RM to have to compete with other providers. I note that my local TNT has started doing evening deliveries to residential properties, which is much better than the RM's "you were out" cards that they seem to love posting and then giving you from 7 to 12 to collect the following morning. RM's practices are in need of modernisation and it's usually easier to do that in the private sector than in the public sector.

[gadgetman]

Bit pointless striking about something that as already happened and can't be reversed, I think if you get your facts straight you will find that the CWU is  balloting for IA due to the 'strings' attached to a 3 year pay deal, such as a cap on pension growth, a legally binding contract NOT to strike for the next 3 years etc etc

Welcome to private industry.  Some CWU members are in for a real shock......

[@Lee]

When you invest you get something back.

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tell that to those who invested in collapsed banks or other business'

[domhnall]

tell that to those who invested in collapsed banks or other business'

They got shares. Government is 'investing' but gets no shares, no network, nothing. BT gets bigger network, more customers, more money oh and the government cut them a deal to reduce the business rates they pay on the fibre.

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[expostmanpat]

Well I have just banged in my EPO, no brainer imho.  

[VWD]

Bit pointless striking about something that as already happened and can't be reversed, I think if you get your facts straight you will find that the CWU is  balloting for IA due to the 'strings' attached to a 3 year pay deal, such as a cap on pension growth, a legally binding contract NOT to strike for the next 3 years etc etc

First ,is cyclistpat ,the new nom de post of Postmanpat?

Secondly - all the public will see is what the Gov't wants. NOT what is actually the true situation as reflected in the working conditions. there's a comedy poster about saying " I try to please one person each day .Today is not your day, perhaps tomorrow, " I'm of the opinion that our mail service under private pwnership will become "We try to deliver to a road on our list each day . Today is not your day . better luck tomorrow" .

 

The problem is that post persons are dedicated to the job. Something that managemant are playing on . i'd like to see some seniour RM official still capable of doing a round. In my day, my dad STARTED AS A POSTMAN. and his Postmaster did likewise. It wasn't unknown in the local office for the Head postmaster to take off his jacket and help out with a mail sort ,if things were tight. He wasn't unknown for doing it as a form of stress relief.

Edited 6 October, 2013 by VWD

[Brian69]

I've just applied via the government website - I was against privatisation so feel a bit dirty for doing so...

However, it'll give me a wee interest and you're getting hee-haw return on cash in the bank / building society at the moment anyway.

My old man worked for RoMEC (Royal Mail's engineering division) for twenty-odd years so there's an emotional attachment as well.

[Paul007]

The deadline is midnight I believe and they'll relieve you of £750 as a minimum investment. 

[Brian69]

The deadline is midnight I believe and they'll relieve you of £750 as a minimum investment.

It's almost certain to be oversubscribed so the amount you apply for is likely to be scaled back.

[gadgetman]

It'll initially trade well, but plummet soon after like most floats.

[Dr Zoidberg]

I'm tempted to try a couple of thousand and drop them soon after.

[Dr Zoidberg]

And have now done just that.

[Brian69]

I used the government website - I was surprised how quick and easy it was!

The only shares I've bought until now are in my employer (we get a good deal - it would be stupid not to).

[jlwah]

It's almost certain to be oversubscribed so the amount you apply for is likely to be scaled back.

That's true, though if you only applied for £750 worth, you may well get them all.

 

The government will probably scale back what the institutions get in order to fulfill more of the public's requirements. With interest rates of around 1.5% and the prospect of 6 or 7% with RM shares, it was a no brainer really, even if the mid term share price remains at around the offer price.

 

Will have to sweat it out until Friday to find out how many we've got 

[Dr Zoidberg]

The official announcement is up - if you applied for any amount between £750 and £10000 then you'll have been allocated £750.

If you applied for more than £10k you got nothing at all.

 

Good job I wasn't greedy then

[Dr Zoidberg]

And shares promptly jumped in value by 30% or more, so it looks fairly obvious that they were undervalued, almost as if the Government wanted to try and buy a few votes.