"Dave Plowman (News)" posted
In article ,
Big Les Wade wrote:
Of course not, and the RM management are well aware of the long-term
trends in their markets. The problem they face is in trying to persuade
the government to regulate the inevitable change such that RM can
prosper as a commercial player in the growth markets while still
maintaining the universal penny post for granny's birthday cards.

Very logical, that. Allow 'competition' for the profitable bits and get
the taxpayer to subsidise the loss making part.

Well, yes. If granny (aka the taxpayer) insists on having a universal
letter delivery service, with the stamps priced at far below cost, then
it is logical that the taxpayer subsidises it.

The profitable bit - parcel deliveries and bulk commercial mailings -
can look after itself, given adequate regulation.

Thus the taxpayer is in
effect subsidising all that junk mail from Virgin.

I think it's the other way round. Commercial junk mail delivered by RM
helps to keep down the cost of stamps - or the level of government
subsidies for letter deliveries, whichever way you want to look at it.

--
Les