Postal Services in Scotland after 2014

Debate between Lindsay Roy and Mike Weir

Wednesday 10th July 2013 Westminster Hall

[Mr Weir]

The Scottish Government will set out their plans. The hon. Gentleman asks us to do that, even though his party is trying to form a Government in 2015 and yet will not tell us what Labour will do with the postal service, because the manifesto is still being written.

We are told that the highlands and islands could get higher charges. Have Members who say that read the Postal Services Act 2011, because that is already possible under the present system? Indeed, Royal Mail has already tried to introduce zonal pricing in some areas. Nothing prevents Royal Mail or its new private owners from introducing zonal pricing in any service, other than the universal service, which, as I have already explained, could be nothing more than the second-class service.

I took the matter up with Ofcom, which wrote to confirm to me:

“Ofcom does not have any powers to restrict Royal Mail from introducing this pricing variation related to user location, as the Postal Services Act 2011 limits our regulatory powers to universal services and access”.

That comes from the horse’s mouth. Members might think that I am the only one to think this, but the Communication Workers Union made exactly the same point.

Section 43 of the 2011 Act allows Ofcom to review the USO and to recommend, among other things, a review of the minimum requirements. It could reduce what is covered by the USO. That is not the future that we want in Scotland. Royal Mail should be a public service, and if it has not been fully privatised before independence, we will stop the process in Scotland. We have never accepted the mantra of successive Labour and Tory Governments that Royal Mail must be looked at as merely another business. It is an integral part of the country’s infrastructure and will be treated as such in an independent Scotland. Indeed, the postal operator must be recognised as an economic driver, especially in rural areas, and not as a drain on the economy in competition for the resources needed for schools and hospitals, which is how it is so often portrayed by the present UK Government.

An old claim is that somehow postal charges between Scotland and England will increase, but Members should be aware that postal charges are co-ordinated through the Universal Postal Union. Letters and packages that start with one designated postal operator can be passed to other postal operators in other countries, and they take responsibility for forwarding them. Under the universal postal convention, there is an obligation on each country to ensure that such items are quickly delivered on the same terms and conditions as its internal mail.

There is absolutely no reason why costs should increase in Scotland. The Scottish postal service will decide the cost of postage in Scotland and to other destinations. In Ireland, the Republic has an all-Ireland price, and there is no reason why something similar cannot operate in Scotland. It would become a member of the UPU, as have other countries that have gained independence.

[Lindsay Roy]

Will the hon. Member explain why the Scottish Government make extensive use of TNT’s services?

[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.

Postal Services Bill

Debate between Lindsay Roy and Mike Weir

Wednesday 12th January 2011 Commons Chamber

[Mr Weir]

The hon. Gentleman makes a reasonable point. The problem is that it is not at all clear what mutuality means. If I understood the Minister correctly in Committee, what is being mutualised is not the post office network, but Post Office Ltd—the management of the Post Office—so the individual post offices would not be in a mutual network, but continue as individual businesses. I struggle to see how that is going to improve the situation.

[Lindsay Roy (Glenrothes) (Lab)]

Is the hon. Gentleman aware that Post Office Ltd is the junior partner in relation to some retail outlets, where it has an upstairs or downstairs location? It has to go through the footprint of the retail store, so it is not able to provide adequate facilities or the same kind of facilities that it did before as the Crown Post Office.

[Mr Weir]

I made that point with respect to my own constituency earlier and the hon. Gentleman is quite right.