Britain’s Royal Mail To Be Privatized

Valuation of Crown Corporations, Crown Corporations, Peter McCaffrey

Last week, the British government announced that the Royal Mail is to be privatized:

The process of selling off the Royal Mail begins today with the promise of free shares for workers weighed against fears about layoffs and higher postage costs…. …The Initial Public Offering (IPO) will value the business at up to £3bn while the stake offered to staff would represent a 10% interest.

Why, in this day and age, a government should be involved in the process of moving items from one place to another, I have no idea. This is £3bn that can now be put to a far more efficient use to help the British people.

A postman empties a postbox

Perhaps even more interesting though, is that the Royal Mail’s current chief executive is Moya Green, a Canadian who served as Assistant Deputy Minister for Transport Canada for a while. In that position, she oversaw the privatization of Canada National Railway and the (partial?) deregulation of the airline industry.

Moya Greene, chief executive of Royal Mail, has held talks with scores of potential investors in recent months in an attempt to persuade them to back the plans. But she faces opposition from unions and many employees, who fear privatisation will lead to a shake-up of services, higher prices and job cuts.

Perhaps once she’s finished, she could come back home and help out Canada Post?

[Canada Post shocked by privatization plans in Britain. Photo taken in Regina this afternoon.]