Royal Mail

Baroness Clark of Kilwinning Excerpts

Thursday 12th September 2013 Commons Chamber

[Michael Fallon]

I do not think that we can legitimately be accused of conducting a fire sale, given that the previous Government were proposing to privatise the company four years ago. The process has hardly been rushed. A lot of people were against that sale; it was a half-baked sale and almost every Labour MP was against it, which is why it was abandoned.

I have already made it clear to the House that the universal service obligation is laid down in statute. It can be changed only by Parliament, and we have no plans to ask Parliament to change it. I can give the hon. Gentleman an absolute assurance in that respect. He asked me about the minimum requirements of the service. They can be changed by affirmative resolution, which would involve secondary legislation. We have no plans to alter those requirements. They will be properly policed by the regulator and will apply irrespective of any change in ownership. The price of stamps is also regulated. The price of a second-class stamp is capped by the regulator, and we have no plans to change that position either.

The hon. Gentleman asked me about the relationship between the Post Office and Royal Mail. They are natural partners in the delivery business, and it is unthinkable that they would not seek to work closely together. They have done more than that, however. Last April, they signed a 10-year commercial agreement to provide for the two businesses to work more closely together.

We heard nothing from the hon. Gentleman about what a future Labour Government would do. It seems extraordinary that, four years on, the Opposition still have not worked out a policy. Even now, they cannot say whether Royal Mail should be public or private; they cannot make up their mind whether they would renationalise the company if there were ever to be a Labour Government again.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Does the Minister not accept that bringing companies such as TNT—which uses zero-hours contracts and sends people home every day because there is not enough work for them—into the most profitable areas will put pressure on a privatised Royal Mail to cut the terms and conditions of its work force and to cut the service for customers?

[Michael Fallon]

There is already competition in the postal market from companies such as TNT, but Royal Mail management have made it clear in their discussions with the union that there will be no change to the work force’s current terms and conditions, and they are prepared to sign an agreement with the union on that basis.