Royal Mail has the potential to flourish under private ownership according to an article which suggests former Government-owned firms like Rolls Royce and BP have prospered under such ownership.
A post titled ‘Privatisation of Royal Mail: the facts’ on myroyalmail.com suggests the organisation’s upcoming privatisation will allow the firm to combine the ‘best of the public and private sectors’.
“Delivering the mail is in our DNA. That will not change,” the article explains. “Our strategy is to ensure a sound and sustainable Universal Service for the benefit of everyone in the UK.”
Furthermore, private ownership will also allow the mailing firm to invest internally, claims the article.
They cite the example of Deutsche Post which was floating in 2001 and has since invested £11.6 billion in its business.
In addition, other privatised companies have also flourished under such regulations. The site uses the example of Ofwat, the water regulator, which found since the privatisation of the water companies, bills are more than a third lower than they otherwise would have been.
A document from the Department for Business, Innovation and Skills, cited by gov.uk, also seeks to bust myths surrounding Royal Mail’s future.
For example, privatising Royal Mail does not mean that the Post Office will be privatised too.
“Royal Mail is the company that delivers parcels and letters – the provider of the universal postal service,” claims the document. “The Post Office is the nationwide network is branches offering a range of postal, Government and financial services. The Post Office is not for sale.”