Royal Mail Debate

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Tuesday 25th June 2013

(11 years, 5 months ago)

Westminster Hall
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Baroness Clark of Kilwinning Portrait Katy Clark
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I hope to explore some of those issues in today’s debate. The fear is that the current regime, which was set up under the 2011 Act, will not give the kind of security that many of us feel is required.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I thank the hon. Lady for being so gracious in giving way and congratulate her on securing this debate. The fact that so many Members are here indicates the interest in the matter across the whole United Kingdom of Great Britain and Northern Ireland. Is she aware that the annual profit of Royal Mail has risen by up to 60% in the past year, which shows that we now have a more viable and stable business? Does she also think that, perhaps for older people in rural areas, the post office represents more than just a place to go to buy their postage stamps and that the impact on them will be greater than on anyone else in the population?

Baroness Clark of Kilwinning Portrait Katy Clark
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The hon. Gentleman makes a powerful point, which I hope to explore in my speech. The point that I was making 18 months ago when I previously secured a debate on this issue was that no other country in the world has attempted to do what the Government are doing here, which is to separate the mail service from the post office network. At that time, a great deal of the concern over the proposed privatisation related to the already vulnerable post office network. At the time, there were many warm words from the Government about how post offices would not suffer as they would become the front of house for the Government. Indeed, the Government said in that debate that they were looking at a range of both national and local government services that post offices could provide. They said that post offices could act as the front line for users in local communities.

One of the major reasons why the National Federation of SubPostmasters is now saying that there should be an immediate delay in the privatisation plans is that the Government have failed to deliver on that promise. Its concern is that post offices remain highly dependent on Royal Mail transactions. It says that both post offices and a stand-alone Post Office Ltd would have a highly uncertain future should privatisation of Royal Mail go ahead.