Penny on the Post: Too Little, Too Late, Too Intrusive Says New IEA Paper

In a new publication by the Institute of Economic Affairs, postal economist Ian Senior, describes the additional 1p on the price of first and second class stamps starting on 8 May as "too little, too late and too intrusive".

The Royal Mail's current financial predicament results entirely from bad management and its historic desire to maintain the letter monopoly at all costs. Postcomm should immediately permit an increase of 3p on first and second-class letters. This will restore Royal Mail to profitability so that it can restructure quickly, get rid of the dead wood managers who brought about the present crisis, eliminate inefficient working practices, reduce its workforce and build good relations with its remaining staff.

Royal Mail Group (RMG), the holding company, is redundant. Its final function should be to separate its three operations of letters, parcels and counters —into freestanding companies and then wind itself up. The government should impose this task on i