Rail to Royal Mail: the dangers of flawed privatisations
October 11, 2013 Leave a comment
October 10, 2013 11:21 am
Rail to Royal Mail: the dangers of flawed privatisations
By Philip Augar
Intervention addresses the symptoms but not the causes of malfunctioning, writes Philip Augar
Is the UK’s privatised utilities market broken? It is a fair question on the day when Royal Mail – once seen as an untouchable public asset – makes its stock market debut, when Ed Miliband, Labour party leader, finds public resonance with the idea of a price freeze in the energy sector and when the government has to step in to cap rail commuter fares. The need for price intervention illustrates the risks of privatising a state-owned utility. If the regulatory balance is wrong or the competitive structure ineffective, the public ends up paying too much, corporate profits become too high and private sector shareholders get a free ride from taxpayers. Read more of this post







