"Sale of Royal Mail was national scandal" says CWU
One year on from the privatisation of Royal Mail, the leader of the Communication Workers Union has today (Friday) called the sale a "national scandal".
Following last year’s sale, shares in the company have fluctuated and are currently settled at around 400p, having initially been offered at 330p. At the height of the share price, which directly followed the sale it is estimated that Royal Mail was undersold by roughly £1billion.
Billy Hayes, CWU general secretary, said: "The botched privatisation of Royal Mail was a national scandal. Not only did the public not want it, but it was an unnecessary and costly process that left taxpayers £1billion out of pocket.
"We are already beginning to see the effects of the Government’s ill-thought privatisation firsthand with the threat to the sustainability of the universal postal service. Unregulated competition is impacting on traffic going through Royal Mail’s delivery centres. Last year the Government said "competition is beneficial, and should not undermine the provision of the universal postal service" but that has been proved to be utter nonsense.
"It would be reckless for the Government to sell its remaining 30 per cent shares in Royal Mail as it seems now to be one of the last few remaining long-term investors left. Vince Cable favoured the 16 so-called ‘priority investors’ in the privatisation of Royal Mail who were supposed to be there for the long-term. But once these investors got the profits for their hedge funds they were off."