Postal Services Bill

Denis MacShane Excerpts

Wednesday 12th January 2011 Commons Chamber

[Ian Murray]

I am grateful to my hon. Friend for that point. The hon. Member for Northampton South was clear about the size of the revenues that go through the post office network, and therefore the survival of many post offices in rural and deprived areas would be in jeopardy. The figure has been mentioned of 900 post offices being temporarily or long-term out of business. It is clear from such figures that the business model for the post office network is unviable at the moment, let alone after taking an additional £343 million out of it.

Tory and Lib Dem MPs were happy to use the Post Office for their own political ends when it suited them in opposition. The post office network was a political hot potato for many years in my constituency of Edinburgh South. It seems shameful that the Liberal Democrat party, which has made a living out of saving post offices—or pretending to save post offices—now sits in judgment on Royal Mail and threatens many thousands of post offices, if not the entire network.

That the Government are not prepared to put a straightforward clause into the Bill to guarantee the future of post offices calls into question the logic of allocating more than £1.3 billion of taxpayers’ money to subsidise and refurbish them. There are still no bankable contracts for additional Government work for post offices, in spite of the warm words, and the requests of the National Federation of SubPostmasters. It is not clear that the Post Office will even win the renewal contract from the Department for Work and Pensions following the benefit changes.

The Government’s failure to take forward Labour’s plans for a people’s bank at the Post Office is yet another Lib Dem manifesto pledge broken. They are turning their backs on the very people out of whom they made political capital for many years.

[Mr Denis MacShane (Rotherham) (Lab)]

That is a fundamental point. In France, Germany, which has been cited, and Switzerland, such banks are viable banks. They are more than just a service for poorer elements of the community, as the hon. Member for Northampton South (Mr Binley) said; they are successful enterprises. I am astonished that the Liberal Democrats, of all parties, do not insist that the bank should be part of the new model.

[Ian Murray]

I decided a long time ago that I would stop being astonished by the Liberal Democrats, and just take it for granted that the things that they say in this Chamber will be astonishing.