British study: privatization of postal service threatens its future
Benefits large companies, no benefit to users.
by Terry Macalister, The Guardian
BRITAIN, May 7, 2008— The government's strategy of opening up the postal market to private sector competition has provided "no significant benefits" for consumers and smaller businesses, while representing a "substantial threat" to the future of the Royal Mail, an independent report commissioned by ministers warned yesterday.
A major shakeup is needed in the way the industry is regulated if Britain is to benefit from a strong, competitive and cost-effective postal service, said the damning report by former media regulator Richard Hooper for business secretary John Hutton.
Large companies have benefited from the full liberalisation of the postal market since 2006, gaining more choice, lower prices and better quality products, but "there have been no significant benefits for smaller businesses and domestic consumers," said the report. . .
Links and sources
Postal privatisation a threat to service with no benefit to customers, says report, by Terry Macalister, The Guardian, May 7, 2008
Posted: May 15, 2008
Voices of privatization
Public Values (PublicValues.ca) is a project of the Golden Lake Institute and the online publication StraightGoods.ca