What is going on?
Every time state-owned Postnord presents a financial report I get upset.
Today, the company reported its earnings for 2016. It showed a loss of 1,4 MSEK. That is completely insane!
If you add to that numerous reports of inadequate deliveries in the past year, you realize that this experiment is a total disaster.
Admit that Postnord – where the Swedish state owns 60 percent and the Danish state 40 percent – is a fiasco. Shut down the company now!
The report indicates that the main reason for the huge loss is the Danish operations. It is explained with the fact that Denmark has been focusing on becoming one of the most digitized countries in the world, which has meant that regular letters have declined by 90 percent since 2000.
In other words, one could say that there is no longer a market. A private company would have been forced to admit defeat and go out of business. However, the government owns the company and just throws even more tax money at it.
This week, Dagens Nyheter revealed that the Swedish government has a contingency plan for Postnord. They are afraid that Postnord will become a new Vattenfall. DN also reveals that when the company was formed in 2008, they received remarkable warnings from the then Swedish Business Development, Nutek. They were clear with the fact that this "would be a bad deal from a Swedish point of view"
Nutek also noted that the then Swedish Post’s net turnover would be more than 70 percent of the new company's turnover. Nonetheless, the Swedish state would only get 60 percent of the ownership and half of the voting rights.
In view of this, Nutek wrote: "The result could result in the Swedish government no longer controlling the Swedish Post’s business with owner directives, but only by legislation. This makes the state ownership in the company in general very questionable."
Despite this, the politicians went through with the deal.
And now the time has come for them to make things right.
I see no other alternative but to close down the company.
The Swedish letter distribution will have to be resolved in a different manner, which I will reconnect about later.