Land Registry for sale.

patman99

Yep, the reckless Tories announced today that they intend to sell-off the Land Registry.

The Tories have decided that as it pays it's way (by contributing more to the Taxpayer than it costs to run) it must therefore be sold off, were it will then contribute even less to the Taxpayer.

Despite all their private education at places such as Eton and Harrow, they have prooved once again that they are more DENSA material than MENSA as they totally fail to get the hang of handling the economy.

HornetSaver

I have no philosophical problem with the privatisation of industries which are more often than not state subsidized, and which should be able to compete in the free market subject to being required to meet a specific need. For example Royal Mail. Though I do have a big problem with governments determined to do so for philosophical reasons regardless of whether they have chosen the optimal time to get value for the taxpayer.

This, at first glance, seems a bad idea to me. Selling off a monopoly which brings in a net surplus for the state? The pay bill is substantial, but if it brings in a net profit and is likely to continue doing so then surely the best course of action is to leave as-is? I'm genuinely interested to hear the other side of this, because apart from a one-time fee I don't see what's in it for the taxpayer here.

The only logic to privatisation that I can see (for either the state, or the new company spending a large amount of money to acquire a service which historically makes a small surplus) is to radically change the way in which the new company charges for information, with the goal being to increase overall revenues whilst reducing or at least in real terms not increasing costs for the existing user.

So in effect, we are either talking about a company taking over the operation that the state already does profitably, or taking on a risk which would be unacceptably high for the state in a time of austerity, and reaping the rewards should it succeed. The first one does not make sense. The second makes a lot of sense in an idyllic world, but the costs to the state would be substantial if said efforts were to fall flat on their derrière.

daveyjp

It pays its way because its charges are set up so that it does!

The cost of the basic search has fluctuated between £3 and £4 per title over the years to ensure the department generates enough to cover its cost.

If its making too much money the cost of services could be reduced!

Thrugelmir

Does the LR operate at a profit once pension liabilities are taken into account. I doubt it. Certainly is one of the more reformed public sector organisations. However falls short of competing at a commercial level. Probably requires significant IT investment as well.

chucknorris

Will it be floated?

Generali

chucknorris wrote: »

Will it be floated?

The mooted plan is to retain ownership by the Govt and have it run by a private, contracted company.

chucknorris

Generali wrote: »

The mooted plan is to retain ownership by the Govt and have it run by a private, contracted company.

Ah well, they would have probably restricted everyone to about £5k worth of shares anyway, no free lunch today then.

chewmylegoff

Don't understand why the govt doesn't just stick a zero on the end of the cost of all the forms rather than selling it off - surely a cash cow ready to be milked.

chucknorris

chewmylegoff wrote: »

Don't understand why the govt doesn't just stick a zero on the end of the cost of all the forms rather than selling it off - surely a cash cow ready to be milked.

There wouldn't be room on the forms to report the price Wood Green properties if they did that though.

HornetSaver

Thrugelmir wrote: »

However falls short of competing at a commercial level.

With who?

.

kabayiri

They should sell it to a private buyer who can then offshore the operation to avoid UK corporate taxes...

...oops, sorry, it's LR we are talking about, not the landlords who own HMRC offices