Weather Afternoon: 10°c Sunny spells Tonight: 4°c Partly Cloudy Night

News

Don't abandon Royal Mail plans

Evening Standard comment
5 May 2009


As the horse-trading begins over the future of Royal Mail, more is at stake than just the embattled Prime Minister's authority.

Mr Brown urgently needs to head off a Commons rebellion over Lord Mandelson's proposed partial privatisation of the service if he is to reassert his grip over his party.

But the Post Office will still be with us when Mr Brown is long gone. It should not be treated as a political football.

The rise of email, payment of benefits into bank accounts and changes ordered by the EU competition authorities have shrunk its business. It desperately needs new capital in order to modernise.

Jobs have to go to get costs down - but the heavily-unionised workforce has a long history of industrial action. Meanwhile, the public simply wants a Post Office that works.

Successive governments have shirked the hard decisions that are necessary to keep Royal Mail competitive. The Conservatives fought shy of a privatisation that could have closed many rural post offices. But that is no excuse for failing to modernise effectively now.

The Government is reportedly considering an alternative ownership structure like that of Network Rail, a not-for-profit company without private shareholders.

That, however, would be a bad precedent. The Network Rail board is a committee of 110 faceless individuals supposedly representing industry and users but in fact far too unwieldy to offer effective leadership. At Royal Mail, such a board would never be able to take the hard decisions now needed to modernise.

Part-privatisation, probably involving a sale to TNT, formerly the Dutch post office, would at least bring in new management skills. If that solution is ditched because Mr Brown has to appease a few backbenchers, we will all be the losers.

Heathrow doubts

Never again can it be claimed that the whole of the business world wants a third runway at Heathrow. A group including the chief executive of Sainsbury's, Justin King, and Carphone Warehouse founder Charles Dunstone, has stated in an open letter that the benefits of the third runway are unproven, while the environmental effects would be damaging. They urge ministers to abandon the plan and concentrate on high-speed rail services.

This newspaper has always believed Londoners would pay a high price in terms of increased noise, emissions and traffic congestion from a third runway, while service could be improved by more competition between airports.

Runway capacity could be freed up if flights to Paris and Brussels, already well served by rail, were reduced. Likewise, rail services to domestic destinations should be improved to reduce the need for internal flights.

The business case for a third runway always had more to do with the profits of BAA and BA than the needs of the economy as a whole.

Some now claim links between some of the letter-writers and the Conservatives, who plan to cancel the third runway. The fact remains, however, that proponents of expansion have not yet made a clear economic case. Ministers should think again.

London pride

Most Londoners will surely agree with the Mayor's verdict on TripAdvisor's negative comments about London - "baffling". A survey conducted by the US travel website claims to find London dirty, badly dressed and the worst in Europe for food.

Can they be talking about the same city we live in? London's vast range of restaurants and the excellence of the best draws plaudits even from New York; its role as a capital of fashion is internationally acknowledged.

The online whingers are outnumbered: more than 26 million people visited the capital last year. London is the most vibrant and dynamic city in Europe - and the world knows it.

Reader views (0)

 Add your view

No comments have so far been submitted.


Add your comment

 

Terms and conditions Make text area bigger You have  characters left.

We welcome your opinions. This is a public forum. Libellous and abusive comments are not allowed. Please read our House Rules.

For information about privacy and cookies please read our Privacy Policy.


 

 

  • Riot axeman terror at McDonald's Axe man A rioter who terrorised diners with an axe at McDonald's has been jailed for five years and three months - one of the toughest sentences for...
  • Terror of boy exposed as gang witness Scotland Yard A BOY and his family had to flee their London home after a blunder by the Met and Crown Prosecution Service gave his name to gang members he...
  • Mayor of poverty-hit council hires adviser in £1,000-a-day deal Lutfur Rahman One of the poorest boroughs in London is under fire for spending £1,000 a day on a personal aide for its mayor
  • Hyde Park mega-concerts at risk after neighbours complain about the noise Hyde park crowd Major music concerts in Hyde Park could be axed because Westminster council believes they are too noisy
  • Soho 'field hospital' for drunks reopens David Cameron smile A field hospital set up to deal with London's drunks is being extended as the binge-drinking crisis deepens in the capital
  • Jobless total jumps by 48,000 with UK facing 'zig-zag year' Job Centre unemployment Bank of England Governor Sir Mervyn King warned Britain faces a "zig-zag" year of growth and gloom today as unemployment rose by 48,000
  • Greens and Ukip could test Paddick in fight for mayor poll third place Paddick Brian Paddick could struggle even to finish third in this year's mayoral election, as smaller parties look set to capitalise on Lib-Dem woes...
  • Phone-hack private eye can appeal over human rights ruling Glenn Mulcaire The private investigator at the centre of the phone hacking scandal was today granted the right by the Supreme Court to appeal against a...
  • Britain's athletes could be banned from 2012 for criticising the team Olympic site British athletes risk being banned from the Olympics if they criticise team-mates or sponsors under rules that cover tattoos, contact lenses...
  • Make 'death trap' junctions safer for cyclists, demands university mourning three Ellie Carey A university that saw two students and a member of staff killed cycling in London last year has accused Boris Johnson of failing to act...
  •  

    Don't Miss
    • London Gateway

      Supersize superport: London Gateway

      London Gateway, the £1.5bn container port under construction on the Thames at Thurrock, will have capacity to unload six of the world's largest ships at one time and have as much impact on the capital as a new airport or half a dozen Westfield shopping centres
    • Matthew Williamson

      One stylish affair: Matthew Williamson

      With London Fashion Week kicking off on Friday, British designer Matthew Williamson tells Rosamund Urwin about breaking up with his ex, post-show partying and his new model man