Postal Services (Rural Areas)

Debate between Baroness Clark of Kilwinning and Tom Clarke

Monday 2nd September 2013 Commons Chamber

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

I beg to move,

That this House recognises the vital contribution that Royal Mail makes to rural areas; notes that the six day a week collection and delivery service to rural and remote areas is invaluable to local life; further notes that the relationship Royal Mail has with the post office network is equally important for the continued survival of post offices; recognises that the impending privatisation of Royal Mail will place a question mark over its willingness to maintain what may be loss-making services; and calls on the Government to provide more concrete, long-term protections for postal services in rural areas, remote areas and islands while ensuring that the postal universal service obligation in its current form endures.

It is a pleasure to have an opportunity to introduce this debate on the future of our post office network in the event of the Government deciding to proceed with their plans to privatise Royal Mail. I thank the Members in all parts of the House who signed the motion that led to the allocation of time for the debate by the Backbench Business Committee. The motion expresses the view that the privatisation of Royal Mail will lead to uncertainty over the continued survival of many post offices, particularly in rural areas where there are often loss-making services, and calls on the Government to provide

“more concrete, long-term protections for postal services in rural areas”.

I represent a rural constituency with many small town and island communities, and I know that there is a great deal of concern among post offices in my area about the impact that privatisation will have on the services that they provide. Post offices are central to the life of many small communities in particular. They provide a number of vital services, enabling people to obtain cash and even to buy a pint of milk.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

I congratulate my hon. Friend on bringing this important issue to the attention of the House.

My constituent Hugh Gaffney, who is a leading member of the Communication Workers Union, has on several occasions—along with others—brought to my notice the impact on pensions that will result if the Government proceed with their plans. He and other members of the union consider pensions to be not national liabilities but deferred income, and he has asked me to convey to the House the strong views that they have expressed. Not only are the union members unhappy, but Mr Gaffney feels that if the Government go ahead with their proposals it will be—as he put it—daylight robbery.

[Katy Clark]

I was contacted by Hugh Gaffney today. He and other members of the union have been lobbying Scottish Members of Parliament in particular. It is vital for many pensioners who live in small communities—and in communities of many different types—to have access to postal services, but such access is also vital for many other people living in small communities.

Royal Mail

Debate between Baroness Clark of Kilwinning and Tom Clarke

Tuesday 25th June 2013 Westminster Hall

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

I am very grateful to my hon. Friend for giving way and I congratulate her on securing this very important debate. I am sorry that I missed the early part of her speech. Does she agree that the current approach is really about privatising profitability but nationalising debt—in other words, corporatism?

[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.