Postal Services (Rural Areas)

Debate between Baroness Clark of Kilwinning and Sarah Wollaston

Monday 2nd September 2013 Commons Chamber

[Katy Clark]

That is indeed the case and that is very much what the people running post offices are saying.

I appreciate the difficulties—the Labour Government grappled with them, too—but I must say to the Government that unless we deliver on providing new services to the post offices, change of this nature is unlikely to be successful. All political parties and all levels of government —not just Westminster, but the Scottish Government and local government—must do a lot more in this area. We need to consider ways in which we can ensure that more services are provided in post offices to ensure a long-term future for them.

[Dr Sarah Wollaston (Totnes) (Con)]

I am grateful to the hon. Lady, who is being very generous in taking interventions. Although I completely agree that post offices need access to more services, does she agree that allowing greater flexibility in the Post Office Local model about how services are delivered within the business is important? A bakery in Frogmore provided such a service, and the restrictions being placed on it seem entirely unreasonable. Does she also agree that more flexibility is needed in the funding for the Post Office Local model?

[Katy Clark]

The hon. Lady is correct. Many people who are running post offices are being very innovative in how they are trying to develop the system, but how they operate is very much determined by how the Post Office relates to them and how the commission is calculated. Many of the schemes proposed by the Government mean that they will get less commission in the future, which is another issue that many people who run post offices are raising with me.

As I said, there is a significant problem with the delivery of items in more rural areas unless Royal Mail provides that service. Even in areas of my constituency where private companies are normally willing to deliver, as soon as there is a bit of bad weather only Royal Mail continues to provide a service.

Although I will not have time to develop the point, another major problem is the fact that people in rural areas are disproportionately reliant on Royal Mail. Consumer Focus, which is now Consumer Futures, found that users in rural areas were often more reliant on traditional forms of communication, such as the post, because of the limited availability of others. We could have many debates about problems accessing high-speed internet in many parts of the country.

The Postal Services Act 2011 enabled other postal service providers to enter the direct delivery, end-to-end market, which is already enabling private postal service providers to cherry-pick services. For example, TNT has set up a delivery service in west, central and south-west London. It is able to win business because it can choose where, when and what to deliver. It does not maintain the service and standards that Royal Mail undertakes to provide, and it undercuts the terms, pay and conditions of postal workers so that it can provide a cheaper service.

TNT employs workers on zero-hours contracts, which means that they are not guaranteed any hours. A journalist who went undercover in a TNT workplace reported how workers “hustled” each day to get work. The practice of organisations like TNT is to over-hire staff, meaning that staff are turned away each day without any work and therefore, of course, without any pay.