Over the past week or so there's been much written and spoken about Peter Mandelson's determination to privatise part of the Royal Mail.
In the letters page of the Dundee Courier, a letter from David McNicoll of the Carnousie Golf Shop caught my eye. I'm sure he won't mind me quoting it.
Sir,—Many members of the public may not be aware Royal Mail services are exempt from VAT.
If the part privatisation goes ahead the company which owns it will be subject to the tax and therefore Mr Brown’s government will receive a substantial income on the turnover.
Is this the real reason why the government wants support for the proposal? I have not yet heard this mentioned from any commentators.
Obviously there is only one person who pays the VAT at the end of the day and that’s the end-user . . . you. Stand by for a 15% hike in postal costs.'
I never realised VAT would have to be paid by the purchaser, did you? So the government get the best of both worlds with this sell off, they receive the purchase price then quarterly VAT contributions. No mention has been made about the price the purchaser will pay but somehow they must think it's cheap or they wouldn't be touching it with a barge pole. There's more to this than meets the eye and it's not only the fact that labour have broken a manifesto commitment in which they assured the electorate the Royal Mail would be kept in public ownership, but a pledge they made last year to the unions.
Posts
13 comments:
subrosa,
'Morning, I think it would be incredibly naive of us to imagine that any move of this nature by Mandy and, by extension, the Labour Party would, in any way, be for the benefit of customers.
I'm all chuffed this morning as I got a mention - even though it was a load of bollocks - on AM2's site - much more prestigious than the Super Seven, ahem!!!
Did not see this angle at all.
Disappointed in myself.
But good point after all we want to put this place back on its feet.............well the manufacturing industry is gone so cant use that as a basis.........so lets hike the tax revenue!!!
To be honest the best way foward for the Royal mail is to break it up. I know most people will not agree to this but when the Royal Mail go on strike the whole country is held to ransom. I just dont like any company having a manopilly over us all.
Spook the sell off is for 30% of the RM. You think the other 70% won't strike? Also depends on who buys the 30%, do you know if the will be unionised?
I understand what you mean but I don't think this sell off will stop strikes.
I didn't see it either TLOTF and I've been watching quite closely. It's never been mentioned the haul the treasury would get from this has it?
I know I'm naive but what's wrong with the government putting in the money to make the necessary improvements? If the staff aren't up to it then sack them and get staff who can cope.
In some ways I sympathise with RM because since they became part of the postal free for all, some smart alex put in the RM's contract that they were the ones who would do the actual delivering. So, TNT et all have to take post they've collected to a central point then the RM deliver it. Seems like a pointless exercise.
There's more to this than meets the eye and it's not only the fact that labour have broken a manifesto commitment in which they assured the electorate the Royal Mail would be kept in public ownership, but a pledge they made last year to the unions.
There always is some nasty sub-plot with Labour.
Perhaps there will be an EU mail announced before long!
Morning brownlie. Of course it's a move to get quick money but Mandelson says he's only putting the Hooper report in place. (I tried to look at it last night but my browser kept crashing when trying to raise the PDF).
As you know I'm reluctant to visit SU's site but I shall do, just out of curiousity. I'm sure you won't need me to defend you :-)
Morning Oldrightie. As I've said to brownlie, I've been trying to read the Hooper report on the RM but the PDF won't open. Makes me think it's set that way. I really am a cynic.
subrosa,
Actually, it all kicked off on Niko's site but then the poster went over to AM2's site and posted blatant lies about me accusing him of covering up for Brown and that he was being intimidated by Nats.
AM2 usually refuses my comments but on this occasion he printed it - hoping no doubt to capitalise on anything derogatory about nationalists and I've got to say the poster played right into his hands.
Ah I see what's going on now brownlie. When AM2 posted on the Scotsman and Herald he had good arguments at times but this blog of his amounts to racism at times. He scavenges blogs looking for the words English or England then, if the writer is Scottish, that's their words copied to his site, taken out of context (he seldom puts a link) and distorted for his own ends.
"the best way foward for the Royal mail is to break it up"
AMW - yer delusional. If you're concerned about strikes in the services I think it would be more rational to suggest binding arbitration.
Well done that wumman!
I knew Mandy was a bandit but a VAT bandit too!
Subrosa im not sure but either way the post office is in a mess. Its to big and messey. What ever happens to it i hope the workers get good deal.
Post a Comment