UK economy update

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3 times asked ,how about the answer. RM are subsidised ? How much subsidy ?. To clear it up, I mentioned certain letters, CT wasn't on my mind. When everything is done thru the net, only letters associated with law and gov will be by post.
 
I'm finding it hard to find definitive information but the articles I can find talk about a £100 million subsidy though they don't make it clear whether that is for the 6 month period or for the whole year.

http://postandparcel.info/59304/new...ip-with-government-and-royal-mail-sales-down/

The bigger thing though is cross-subsidy. Sending a letter or parcel between two major cities is charged at the same rate as sending it to some remote island, despite the far greater costs involved in the latter. So as with many things those of us who live in urban areas subsidise service to those who live in the middle of nowhere.
 
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Not quite sure what this link means. What I do know is that 60% of RM is privatised, therefor no subsidy. Further, the Poast Office as we know it ,is not part of RMG
 
Having a stamp that is good for close and far delivery at the cost is what the 'universal service' is about. This is what the problem is and why RM as I feel is wrong that other delivery comps use RM to deliver their stuff and cherry pick the short range post. While this goes on the gov will have to change the rules as all other delivery comps don't know what the hell is happening and can't prepare for the future. A bad mess, perpetrated by the gov
 
Not quite sure what this link means. What I do know is that 60% of RM is privatised, therefor no subsidy. Further, the Poast Office as we know it ,is not part of RMG

many a "private" company get subsidies usually to provide essential services that don't cover costs like rural buses/rail services ferry services
 
There are many ways the mail is subsided, other than the direct funding that is easy to see.

As someone said above, the big subsidy is the universal price, which is really a subsidy from city to towns/villages through the customer, there are the subsidies of small village offices.

There are the pensions.


Then look at the amount of mail the government creates for royal mail.

For my operation I have had about 30-40 letters from the NHS.

Doctors in one hospital also send my information to other doctors via post, so that's another 10-20 letters.

There is justification in keeping the royal mail now, there is still enough of a need for it to exist.

But in 10-30 years there will not be, people just won't need it enough to justify such large amounts of market and subsidy fiddling.

It was best to sell it now for a few billion, before it was worth nothing as it one day will be.
 
Tripe, letters will decrease, every one agrees. However, as the net has shown online buying will increase. It is natural that old farts can't see this. When it becomes impossible for travel coz of the expense involved home deliveries will be natural. Finally, interpretation of subsidy for RM inc pensions is so flaky it is beyond sense. Where do you draw the line on subsidies ? Blimey everybody in the country is on some form of such.
 
Just a shame that the government saw fit to sell shares in RM at a knock down price though.. Hindsight is a great thing,, If only they'd realised this when they set the price, they could have made more money from the sale, and possibly used the money to save some services in these times of austerity ( a bit like Brown selling our gold assets when gold was at an all time low) ;) ;)
 
Just a shame that the government saw fit to sell shares in RM at a knock down price though.. Hindsight is a great thing,, If only they'd realised this when they set the price, they could have made more money from the sale, and possibly used the money to save some services in these times of austerity
In fairness, they were only complying with EU policy at the time.
 
RM wasn't sold off cheap. Seamed cheap and was cheap until the full picture was unveiled as I've mentioned before [why don't you read]. The public was deceived. I also wondered why the whole 100% wasn't floated, it is all becoming clearer. Now the economic recovery. Today 137 companies have dished out profit warnings. The things that add up to recovery still don't add up. One of the factors these 137 gave for this warning was pound strength
 
Just a shame that the government saw fit to sell shares in RM at a knock down price though.. Hindsight is a great thing,, If only they'd realised this when they set the price, they could have made more money from the sale, and possibly used the money to save some services in these times of austerity ( a bit like Brown selling our gold assets when gold was at an all time low) ;) ;)

It's not a shame.

It's just government.

Any decent businessman is doing business, the government is not and never has been filled with business savy people.
 
Won't be suppressed
RM wasn't sold off cheap. Seamed cheap and was cheap until the full picture was unveiled as I've mentioned before [why don't you read]. The public was deceived. I also wondered why the whole 100% wasn't floated, it is all becoming clearer. Now the economic recovery. Today 137 companies have dished out profit warnings. The things that add up to recovery still don't add up. One of the factors these 137 gave for this warning was pound strength
 
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