Mario Dunn: Royal Mail sell-off could prove to be last post

Of course the investors it is aimed at will run a cool, calculating eye over Royal Mail’s prospects and decide whether or not to take a punt. They will only do so if they can be sure of a good return on their investment.

Over in the real world it is where those “good returns” are going to come from that should set alarm bells ringing. Many think the concept of the letter anachronistic in the digital age. The reality is the opposite – Royal Mail services are as important as they have ever been.

Despite the decline in traditional letter mail, the advent of shopping online has seen the demand for packets and parcels rocket. Royal Mail is benefitting hugely from e-commerce; it is a real growth area for the business.

However, not all the services Royal Mail provides are so profitable. It has what is known as a “universal service obligation” (USO) – that means it must deliver everywhere for a single price.

The USO is quite a burden for Royal Mail, but while the business remains in public hands, it is not an issue for debate. Royal Mail just gets on with the job of delivering letters from Land’s End to John O’Groats for, let’s face it, a reasonable price.

With privatisation looming, all that is up for grabs. Save Our Royal Mail has been launched in response to this. Our aim is to ensure that the current levels of service Royal Mail provides are not diminished by a sale, nor are prices sent shooting up. We estimate that should Royal Mail become liable for VAT in the private sector and there is just one further price increase similar to the last, the cost of a first class stamp will rocket to 94p. Those who think this is scaremongering need just look at the cost of energy bills to see how quickly prices can rise if they are unchecked.

Of equal concern is the future of rural postal services. With so many rural communities suffering from the loss of the Post Office, pub or village shop, often the daily visit from the postman or postwoman is the principal lifeline to the outside world.

Yet the postal regulator Ofcom has already reviewed these services and while it is not proposing an immediate change (it would be mad to do so at this time), it has suggested that the current level of services to rural areas is in excess of need.

As well as price rises and cut backs to rural services, Save Our Royal Mail is highlighting the impact of price rises on business and small businesses in particular. Many are dependent on Royal Mail. The delivery of letters and parcels to any address in the UK is an engine on which our economy runs.

Royal Mail also provides specialist freepost services for the blind and partially sighted and HM Forces serving in conflict zones overseas. The clue is in the word “free” which in reality means a significant cost to Royal Mail.

Finally we must not forget Royal Mail’s heritage. A few years ago Royal Mail attempted to rename itself Consignia. Fortunately the public outcry forced a u-turn. Its name, which dates back to 1635, is just a small part of the heritage of Royal Mail.

The traditional red liveried vehicles, the use of Her Majesty’s head on stamps and the distinct pillar boxes are all part of the rich history of Royal Mail and a feature of our towns, cities and countryside. So were those iconic red GPO telephone boxes.

The glue that binds this heritage together is the public service ethos of Royal Mail. Private businesses naturally seek to cut costs wherever possible. For example, it would be far more cost efficient to have European style yellow tin post boxes instead of those expensive, big red pillar boxes. It would drive profits to have, say, adverts from payday lenders on stamps. None of that can happen if Royal Mail remains subject to public scrutiny.

No doubt we will be told that selling Royal Mail is necessary to make the business more efficient and cheaper to the customer. Few of us who pay our energy bills or use the railways would agree. What we have seen is a consistent pattern across the utility sectors, price rises and service reductions. We don’t want Royal Mail to go down that well- trodden route.

You can help protect those services our country cherishes. Please go to our website saveourroyalmail.org and download a letter to send to your MP. It is they who can influence the debate but they need to know their constituents feel strongly about this issue. You can also sign our petition there.

The future of Royal Mail rests in your hands.