Universal Postal Service

Debate between Ian Murray and Mike Weir

Thursday 17th July 2014 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

The hon. Gentleman is making an incredibly powerful case about the potential consequences on the USO that Ofcom may bring forward. Will he confirm that a statutory instrument upstairs would not necessarily be a full vote of both Houses? It would be a statutory instrument that goes through both Houses.

[Mr Weir]

Indeed, that is my understanding.

--- Later in debate ---

[Ian Murray]

I did not want to go into the independence referendum arguments, for two simple reasons: first, they are incredibly complex, and secondly, the issue is not entirely relevant to the debate. I think that we are all slightly sick of the independence referendum. I hoped that we could be “independence free” today, but perhaps that is not possible after all. However, the hon. Gentleman is absolutely right. Whichever way we view the issue, it is clear from the geography of Scotland that it would be much more difficult and expensive to deliver postal services there following independence. Scotland’s postal services are cross-subsidised because of that geography. That is one very simple argument about what would happen to postal services in an independent Scotland.

[Mr Weir]

rose—

[Ian Murray]

I have awoken the beast of Angus. If he will excuse me, I will not give way because of the time constraints—or perhaps I will, just for the sheer fun of it.

[Mr Weir]

The hon. Gentleman talks of the geography of Scotland, but what we are debating is whether the universal service obligation will continue within the Union. It is the Union that is a danger to the universal service throughout the United Kingdom, not Scottish independence. Scotland, like any other country, can run a postal service to suit Scottish needs.

[Ian Murray]

I think the hon. Gentleman should go to see the doctor that my hon. Friend the Member for Hayes and Harlington (John McDonnell) sees and perhaps get some advice on how to calm down a little about the independence referendum.

I am looking at the time, so I will conclude now by paying tribute to our posties up and down the country. I went on a round last year with Michael Lunn, one of my local posties from the Strathearn road delivery office, in the most tenemental part of my constituency. I can assure hon. Members that it was quite a hard round without lifts in those tenements. Not only did he deliver the mail efficiently, but he knew where people lived, which buzzers to press to get in when people were at work, whether people were on holiday and whether people were expecting parcels. He knew everything about anybody in his round. When we put it in that context, we see that it is not just a postal service; it is a service to all our communities. It is a valuable social service that we should make sure we do not jeopardise, because if we do, that will be detrimental to everyone in the country.

Postal Services in Scotland after 2014

Debate between Ian Murray and Mike Weir

Wednesday 10th July 2013 Westminster Hall

[Mr Weir]

The previous Labour Government used TNT extensively because procurement rules force many Governments and public organisations to use such services. I have already said that Labour tried to privatise the industry, but Labour Members seem to forget that. The previous Labour Government tried to privatise postal services; we opposed that; and we continue to oppose it. We will ensure that the Scottish postal service meets the needs of Scotland and the Scottish people.

[Ian Murray (Edinburgh South) (Lab)]

I do not normally intervene from the Front Bench, but for clarity I want to put on the record the fact that the previous Labour Government would have kept the postal service in public hands. The public sector would have owned 60%, so it is incorrect to say that the previous Labour Government wanted to privatise Royal Mail.

[Mr Weir]

I am sorry that the shadow Minister does not remember his own policy. Lord Mandelson proposed privatisation of 49%, not 40%. The hon. Gentleman may believe that the situation would have stopped there, but the clear intention was to privatise. What will happen if privatisation goes ahead? In the Netherlands, where the universal service provider—[Interruption.]

--- Later in debate ---

[Ian Murray (Edinburgh South) (Lab)]

It is a great pleasure to serve again under your chairmanship, Mr Hood. I congratulate my hon. Friend the Member for Glasgow South West (Mr Davidson) on producing in his wonderful fashion 25 minutes of wonderful speech defending not only Royal Mail and the Post Office, but the Post Office and Royal Mail as well. Time is short, so I will not run through the issues with the privatisation that is happening now at UK Parliament level; there will be a statement in the House at 12.30 pm, where the Government will lay out their plans for privatisation. It is important to be crystal clear about the Opposition’s position: we are 110% against the privatisation of Royal Mail. There was a debate in the House last week, so I will not run through the reasons for that position.

I am absolutely delighted that Liberal Democrats have said on the record this morning in this Chamber that privatising Royal Mail is Liberal Democrat policy, not only Conservative party policy. The Minister of State, Department for Business, Innovation and Skills, the right hon. Member for Sevenoaks (Michael Fallon) wrote a letter in 2009 to the Communication Workers Union, saying that he was against privatisation, so perhaps only Liberal Democrats are for it and the Conservative party is against it.

Now that the Edinburgh agreement has been signed and the referendum will happen in September 2014, Scottish people, Scottish politicians and civic Scotland—if I may use that unwieldy phrase—are asking serious questions about what services will look like post-independence if they vote yes. We always say that Scotland can of course be an independent country, but what kind of country will it be? I am waiting for the hon. Member for Perth and North Perthshire (Pete Wishart) to jump up or tweet to say that all we are doing is scaremongering, but we are asking the legitimate questions that the people of Scotland want answered. If he does not want to take my word for that, an article a few weeks ago by Lesley Riddoch, who is certainly a vocal supporter of the yes campaign, says that

“Scots will be jumpy about the possibility of losing access to the Post Office and Royal Mail. A generation of Scots grew up with Postman Pat and helped reverse the Post Office’s ill-fated transformation into Consignia.”

No one knows what postal service will look like in an independent Scotland. Even Lesley Riddoch is asking questions that the SNP and the Scottish Government have not been able to answer.

The postal network in Scotland is critical to not only the economy and business, but the people who live there. Whether a letter is posted from Orkney to Oxford or from Peterborough to Edinburgh—I should have said Perth to keep the peace going and please the hon. Member for Perth and North Perthshire—there is one cost and the exactly the same very high service standards. My hon. Friend the Member for Glasgow South West has already mentioned the one-price, equal service and that service standards for private companies are not as high, which has given Royal Mail an unlevel playing field to compete on against private companies. Statistics from the Federation of Small Businesses show that Scottish businesses rely on Royal Mail more than businesses in the rest of the UK—56% to 42%. That highlights a fact that we will talk about when we go on to other issues: Scotland relies on the Post Office and Royal Mail far more than other parts of the UK. There are proportionately more post offices in Scotland.

The statistics in the wonderful briefing from the National Federation of SubPostmasters speak for themselves. There are 1,415 post offices on Scotland, of which 67.5% are rural, as opposed to just under 55% in the rest of the UK. Scotland has 12% of UK post offices with 8.3% of the population, so we have proportionately more in Scotland. Those statistics alone tell us that the post office network, as opposed to Royal Mail, in Scotland is significantly more expensive to operate, because there are more post offices and more rural post offices. We know about the social side of post offices in rural areas.

We need to know what the SNP and the Scottish Government plan to do with postal services in Scotland. They have said that they will abide by EU directives. There are questions for a university thesis about whether we will be in the EU, but for the sake of argument, I shall use the hypothetical scenario that Scotland will be, so the EU directive covering the universal service obligation baseline will kick in. The UK has gold-plating on top of that baseline—the only EU directive that the UK Government support gold-plating—which says six days a week, one price, anywhere.

If the Scottish Government maintain the six-days-a-week universal service obligation, as they confirmed last week under questioning from the Select Committee on Business, Innovation and Skills, the next question to ask, after congratulating them on making one commitment, is, how will they pay for it? How much will that mean in subsidies for the post office network? How much will it mean in subsidies for the Royal Mail network? How much will a stamp cost in Scotland for internal and external mail? How much will it cost to post a letter from Newcastle to Edinburgh?

The hon. Member for Angus (Mr Weir) says that Ireland is covered by the same price, but that is Ireland’s choice; England’s choice could be that they will use cross-border postal services at international or European rates. It is England’s decision, not the decision of Scotland or the Scottish people.

We have looked at post office statistics. We heard from my hon. Friend the Member for Dumfries and Galloway (Mr Brown) about the extreme pressures at the moment on sub-postmasters and their incomes, which continue to drop. If Royal Mail is privatised, which will be announced this afternoon, there are grave dangers that the inter-business agreement will be either salami-sliced between now and its renewal in 2022 or disappear altogether. What do the Scottish Government guarantee will be the relationship between the Post Office and Royal Mail at separation? How much will it cost at separation and how much will the inter-business agreement provide to the post office network to maintain the incomes that my hon. Friend mentioned?

[Mr Weir]

The hon. Gentleman asks lots of questions—obviously, the Scottish Government will have figures to answer many of them—but can he answer the same questions on what the position will be in the UK? There is uncertainty in privatisation and in the interaction between a privatised Royal Mail and the post office network and Post Office Ltd, if privatisation goes ahead.

[Ian Murray]

Surely, that is a question for the Minister to answer. The Opposition are saying clearly that privatisation of postal services in the UK is wrong; we should not privatise Royal Mail, because of the threats to the inter-business agreement, the universal service obligation and the regulatory framework. The regulatory framework provides us with another example of issues that will have to be resolved. What will it look like? Who will regulate postal services in Scotland? What are the parameters under which the services will operate?

We are running out of time and I want the Minister to be able to answer the questions. The Opposition are constantly accused of scaremongering when we pose legitimate questions as simple as, how much will it cost to post a Christmas card from Edinburgh to Glasgow first class? I want to send one to my hon. Friend the Member for Glasgow South West. He is on my Christmas card list. I probably will send him one. How much will it cost? That is not scaremongering. It is a simple and straightforward question.

As we sit in this Chamber today, it is clear that the Scottish Labour party is the only party standing up for the universal service obligation in Scotland. The Conservatives and the Liberal Democrats want to privatise it, and the SNP has absolutely no answers to the basic questions about how it will be maintained. The message must go out loud and clear that, until the SNP can answer those basic questions, it cannot tell us how to maintain the universal service obligation and postal services in Scotland.

Royal Mail

Debate between Ian Murray and Mike Weir

Tuesday 25th June 2013 Westminster Hall

[Mr Weir]

rose—

[Ian Murray]

I will not be taking an intervention, because I do not have much time, but perhaps on the next occasion that we debate Royal Mail, the hon. Gentleman might come prepared with some of that information.

The environment therefore has changed since the Hooper report in 2008. That is why we should allow Royal Mail, under its new regulatory regime and its new environment, the opportunity to thrive in the public sector.

What is the real purpose of privatising Royal Mail? First, ideology—there is an ideological thirst for privatisation in the Government—and, secondly, to plug a hole in the Chancellor’s funding gap, because he is borrowing £245 billion more during this Parliament, owing to his failed economic policy. The fire sale of Royal Mail is the opportunity for him to plug that gap.

Let us analyse who is against the proposals. The late Prime Minister, Baroness Thatcher, the architect of ideological privatisation in the Conservative party, said that it would be a step too far. More recently, the Bow Group, a right-wing think tank to which the Minister might give much credence, said:

“It is likely to be hugely unpopular, prices will rise at a time when people cannot afford it, an amenity that many communities consider crucial will be removed, it will undermine the heritage of Royal Mail. The privatisation of Royal Mail is likely to move swiftly from a poisonous legacy for the Government now, to a poisonous legacy for the Conservative Party going forward”.

I would include the Liberals in that.

Public Sector Pensions

Debate between Ian Murray and Mike Weir

Thursday 8th December 2011 Commons Chamber

[Mr Weir]

But the lower paid are being hit in every other way. They are being hit by higher VAT, the higher fuel price and everything else. Their living standards are falling.

Lord Hutton’s report also firmly rejected the claim that public sector pensions were gold-plated. It seems to me that the answer is not to attack public sector pensions, but to take action to try to help private sector pensioners. Unfortunately, however, previous attempts by Government to persuade people to opt out of state pensions, and the state second pension, into private pensions, and the mis-selling that went on, have undermined confidence in private pensions, especially among those on lower incomes. If the Government really want to do something about pensions, they should think about how they can encourage people in private occupations to save for their pensions.

For many years, we have been debating the future of pensions and how to encourage people to save more, but increasing contributions by such a large amount at a time when family budgets are under so much strain may well reduce the number of people who save for the future. There is a real chance that many will feel unable to make the larger contributions and will fall out of pension schemes, which could be a disaster for both the future of the schemes and the public purse. My hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards) cited the results of an FBU survey, which suggested that 27% of people could fall out of their schemes. In his autumn statement, the Chancellor threw petrol on the flames of public sector discontent by casually introducing the idea of regional pay, which, if implemented, would have a serious impact on Scotland, Wales, Northern Ireland and the north of England.

[Ian Murray]

I have a tremendous amount of respect for the hon. Gentleman, but will he tell us what were the SNP’s proposals to the Hutton review, so that we can make an objective assessment of its position in relation to that of the coalition Government?

[Mr Weir]

I was about to deal with the position of the Scottish Government. They have taken positive action to help to protect household budgets by, for example, freezing council tax for the rest of the parliamentary term, increasing the Scottish living wage to £7.20 an hour for all staff for whom they are responsible, and committing themselves to imposing no compulsory redundancies. In contrast to the Westminster Government, the Scottish Government have sought to focus on protecting Scottish household budgets.

The amendment tabled by the Labour party referred to the devolved Administration. In Scotland—