Post Office Network

Debate between Brian Binley and Gregg McClymont

Tuesday 2nd November 2010 Westminster Hall

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

Thank you, Mr Hollobone. I shall speak even more briefly than that.

I spoke on Second Reading and have had conversations and briefings with the Minister. All politics is local, so it is understandable that we have heard a great deal today about local post office branches; in villages, in particular, they are a lifeline. However, I want to raise the broader picture and speak a little about how the Postal Services Bill is drafted.

I said in an intervention that statutory provision for post offices should be written into the Bill. At the moment, it is unclear what mutualisation actually means, but however well it proceeds we have a big problem, because 7,500 post offices do not make a profit. The two most successful mail services in the world are the German and Dutch services. In both those countries, provision for post office services is written into statute. I reiterate the point that however worthy the good intentions of the Government and Members on both sides of the House in respect of the Bill, unless we make provision in it for post office numbers, given the economics of Royal Mail and the Post Office, we are looking at significant closures down the line.

The hon. Member for Northampton South (Mr Binley) made a valid point about allowing managers to manage, but given the economics of the Royal Mail and post offices, even wonderful managers will have a difficult task protecting the 7,500 post offices that do not make a profit.

[Mr Binley]

Recognising that most of our small post offices are private businesses, is the hon. Gentleman willing to subsidise private businesses and, if so, to what extent?

[Gregg McClymont]

I am tempted to produce a line from the Leader of the Opposition: I understand that I ask the questions and the Government answer them. Does the hon. Gentleman agree that given the logic of the economics of the post office network and Royal Mail, it is difficult to see how to protect the 11,500 post offices we currently have unless we write into the Bill provision to protect them? That is the key point.

[Mr Binley]

There is an easy way to do that: help post offices with marketing, a proper retailing policy and a wider range of services to sell. It is all there to do, but it has not been done effectively.

[Gregg McClymont]

I admire the hon. Gentleman’s confidence and enthusiasm. We hear a great deal—understandably—from Government Members about the Labour Government closing 5,000 post offices, but that Government’s criteria meant that we have maintained 11,500 although only 4,000 are profitable. I say in all sincerity that unless we write into the Bill provision to protect the number of post offices we have now, we will see post office closures down the line, and that is something that everyone in the House would deprecate. I ask the Minister whether he will put that provision in the Bill.

My final point is about the universal service. I understand that the first universal service order that Ofcom will make as the regulator will not require parliamentary assent. When Ofcom makes its universal service order we will not be able to say that we do not accept it. That is important.