Royal Mail

Debate between Baroness Clark of Kilwinning and Joan Walley

Tuesday 25th June 2013 Westminster Hall

[Katy Clark]

I agree with my right hon. Friend. Indeed, the profits currently being made by Royal Mail have already been highlighted in an earlier intervention.

Many MPs will be very aware of some of Royal Mail’s competitors, such as TNT, which for many years have had a role in the postal market through what have been called downstream access contracts. Of course, many MPs will be aware of that from their annual visits to post offices at Christmas, where they will have heard of the frustration of those who work in sorting offices at having to deliver items for TNT and other organisations for what is called “the last mile” or so, and at a financial loss to Royal Mail. There is a very strong view that this practice is unfair and that it is unreasonable to expect Royal Mail to carry out that work at such a loss-making rate. My experience of meeting delivery staff working for Royal Mail is that they have a very high level of public service ethos and wish to see the highest possible standards in service to the public. There was real frustration that Royal Mail was being forced to operate with its hands tied behind its back in this way.

Now, however, TNT is also being allowed into the end-to-end market. TNT has set up a delivery service in west and central London, and it recently announced the extension of that service to south-west London. Of course, TNT is able to win business because it can choose where, when and what to deliver, without the quality of service standards and by undercutting the jobs, pay and conditions of other postal workers.

[Joan Walley (Stoke-on-Trent North) (Lab)]

I congratulate my hon. Friend on securing this debate, and I hope that she will get some response from the Minister. However, I must say to her that it is not only in rural areas that we are concerned about the loss of what is the universal standard; it is also in urban areas. We could be facing the prospect of just one or two deliveries a week—far fewer deliveries than at the moment under the present certainties that we have.

[Katy Clark]

I thank my hon. Friend for that intervention.

It may well be possible for TNT to provide a service by undercutting in places such as London. However, it is highly unlikely that they would ever be able, or willing, to provide a similar service in areas such as North Ayrshire and Arran, or indeed in many other parts of the country. The TNT model of competition means cutting costs at the expense of decent jobs. TNT employs staff on zero-hours contracts at below-living wage standards. In London, I understand that TNT pays £7.10 per hour, which is £1.45 below the living wage. I am also advised that TNT over-hire staff to ensure that there are more than enough people to do the job every day, so that each day workers on zero-hours contracts are turned away.

Oral Answers to Questions

Debate between Baroness Clark of Kilwinning and Joan Walley

Thursday 13th December 2012 Commons Chamber

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

4. Whether it is his policy to decarbonise the power sector by 2030.

[Joan Walley (Stoke-on-Trent North) (Lab)]

5. Whether it is his policy to decarbonise the power sector by 2030.