Royal Mail

Edward Leigh Excerpts

Thursday 12th September 2013 Commons Chamber

[Michael Fallon]

No, I do not think that anything in the agreement will stop that continuing relationship, but we are still waiting for an answer from the Labour party on whether it will respond to the union’s call to renationalise this company, should we ever be unfortunate enough to have Labour in government again.

[Sir Edward Leigh (Gainsborough) (Con)]

Given that we started this process in the old Department of Trade and Industry 21 years ago, this must be the longest fire sale in history. It was apparent then, as it is apparent now, that if Royal Mail is to grow it must have commercial freedom. At the same time, it is possible through primary legislation to protect the universal service—the stamp costs the same in rural Lincolnshire as in London. We said that 21 years ago and we have been saying it ever since. When will Labour Members start to listen?

[Michael Fallon]

I am grateful to my hon. Friend, who played a part at an earlier stage of the story. A lot of progress has been made since then in tackling the pension deficit, setting up a proper regulatory framework and separating Royal Mail from the Post Office, but he is right to emphasise the key point: Royal Mail needs commercial freedom to invest in its future. The private post in Germany, Deutsche Post, is spending about £600 million a year in modernising its network and in automating, and Royal Mail needs the freedom to invest similarly.