Royal Mail consumers must be protected in its sale

Even Margaret Thatcher balked at the sale of Royal Mail, saying she was “not prepared to have the Queen’s head privatised”. She felt its monarchical connections and distinguished history going back to the creation of Master of the Posts in 1516 gave it a unique position in British life. It had been in public ownership since 1635 and possessed a Royal Charter symbolic of its national importance and cultural significance.

But the past was sold, along with the company, in 2013 – just as letter writing was in steep decline and competition to deliver parcels was growing rapidly. Once in the private sector, the business became a target for investors and private equity firms.

The current owner, International Distribution Services (IDS), has now agreed a sale to the Czech billionaire Daniel Křetínský in a deal valuing the group at £3.57 billion. Mr Křetínský was already the largest shareholder in IDS and has given a series of legally binding undertakings about the business’s future.

Foremost among these is to retain the Universal Service Obligation, whereby a letter is delivered anywhere in the country for the same price. But those letters are no longer delivered as regularly as they used to be and a move to two or three days a week for second-class letters seems inevitable. The Saturday delivery for first-class letters might also be at risk.

The deal requires the agreement of shareholders but will also attract government interest on security grounds. What consumers want is a service that is efficient, good value for money and reliable, something regulators have so far been unable to guarantee. They must ensure that Mr Křetínský fulfils his undertakings to the public.

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