Tuesday, 20 December 2005

Postal privatisation

A House of Commons select committee has stated that "universal service" may not be met if a market exists in letter and parcel delivery.

Universal service refers to the Royal Mail delivering letters to all addresses, no matter how remote. MP's believe such a thing would be undermined if a market existed in posting letters.

These MP's should learn that if a demand exists, someone will meet it in a free market. Maybe someone will come up with a method to deliver letters and parcels to "remote" areas in a free market. A market certainly would lead to better services and lower prices for sending things. If the Royal Mail's stamps were at a higher price than their competitors, would people be as inclined to buy them?

Another thing these MP's should learn is that with all the taxes, regulations and other things companies have to endure, people may be deterred from starting a company that delivers to remote areas. If I were one of these MP's, I would be questioning the level of regulation that New Labour has on business.