ISBA backs Royal Mail privatisation

Direct marketers have given their broad backing to the Government’s plan for the future of Royal Mail in advance of proposals being introduced in the House of Lords tomorrow (Thursday).

ISBA marketing services manager, David Ellison says that the advertiser trade body’s direct marketer members “agree with the plan to allow private investment because of the untenable position of Royal Mail.”

“We welcomed last year’s Hooper Report,” he continued, “which recommended that Royal Mail should forge a ‘strategic minority partnership’ with a private company, and agree that this should be a postal operator with a proven record in transforming its business. Partnerships have been introduced successfully in European countries such as Denmark, where overall efficiency has been improved”.

“However, a word of caution. We believe that the company chosen for the partnership must be prepared to invest in Royal Mail’s long term future. Although under the proposed deal regulators will continue to set the price of a number of postal services, there is at least the potential for price rises under the influence of a private company”.

“Although Lord Mandelson believes that he can placate those Labour MPs opposed to allowing private investment in Royal Mail, Lord Hooper stated that his three recommendations should be implemented as a package and without delay. Any loss of momentum will further threaten the universal postal service.”

Royal Mail has just unveiled plans exclusively to Marketing Week for a free-of-charge industry body focusing on direct mail to be called the Mail Media Centre.

Royal Mail will fund the MMC on behalf of the entire mailing industry in a bid to offer better information, education and help to marketers when they are tasked with choosing their marketing mix.