Royal Mail

Derek Twigg Excerpts

Thursday 12th September 2013 Commons Chamber

[Michael Fallon]

I told the House of the scale of investment now being made by the privatised German postal service, Deutsche Post. That £600 million of investment gives us an idea of the scale of investment that may be needed to help to modernise the Royal Mail. It has to modernise its network, invest in its infrastructure and automate more of its parcels business. It can no longer compete for scarce public resources with schools and hospitals that will always have priority over such investment. It is absurd to have a company of that size as the only really big British business that cannot access the private capital that it needs. That will end.

[Derek Twigg (Halton) (Lab)]

Many of my constituents have contacted me to say that they oppose this privatisation. They recall similar promises of improved services made when the utilities were privatised, and few people could be found today who believe that happened. Why does the Minister think that a majority of the British people are opposed to his policy?

[Michael Fallon]

There are members of the public who do not yet fully understand how Royal Mail has been separated from the Post Office and who have chosen to believe some of the untrue scare stories that have been put around. The hon. Gentleman will also recall that almost every privatisation that I can remember has initially been opposed—or failed to command universal support—but nobody now suggests that we reverse those privatisations of the 1980s.