Royal Mail Delivery Office Closures

Debate between Mike Gapes and Gill Furniss

Wednesday 11th October 2017 Westminster Hall

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

It is a pleasure to serve under your chairpersonship, Mr Gapes. I thank my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) for securing this debate. Her campaign to fight for the future of the local delivery offices in her constituency is inspirational; she made Royal Mail stop and reconsider what seemed like an inevitable closure. I commend her for standing up for good local postal services for her community and for a certain future for postal workers. I would like to mention the many contributions by hon. Members from both sides of the House—in particular, the hon. Member for Angus (Kirstene Hair), who was the only Member representing the Conservative party.

Last week, CWU members sent a clear message to Royal Mail when they voted by a momentous number—almost 90%—in favour of strike action in defence of their job security, their pensions and the future of the service. Defying the draconian Trade Union Act 2016 and attempts to quell the power of unions to demand better workers’ rights, the stunning vote was a clear mandate for a strike. My hon. Friend the Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) went into that very eloquently so I will not dwell on it, but I am extremely disappointed to say the least by the Royal Mail’s approach to the ongoing dispute with CWU members. It showed the workers very little respect, but, as always, defended Moya Greene’s right to earn almost £2 million per annum, which in my view is completely obscene. The Royal Mail has now escalated the dispute to the High Court. We await that decision tomorrow, but I think it should have honoured the decisive result in the ballot. I welcome both sides back to the table to try to sort this matter out.

The Labour party supports a delivery office network that remains the heart of a community-based Royal Mail, with local posties based in our communities, mail delivered on time and parcels available for collection quickly and easily. Local delivery office closures often leave the most vulnerable and most affected with longer trips to collect mail and, in many cases, later deliveries of crucial post.

The Royal Mail insists that there is no programme of closures, but only ad hoc decisions to close offices where there are operational issues, but that flies in the face of the evidence. Since it was privatised in 2013, 75 delivery offices and up to 90 scale payment delivery offices, where postal workers are based, have been closed. Yet with £850 million more due to be taken out of the Royal Mail in dividends, it is clear that profit, not service, is driving the agenda for the Royal Mail. We have had one closure in my city of Sheffield, but that is dwarfed by large numbers in Manchester, London and many other places. It is difficult to believe that those closures represent anything but a planned programme to cut costs and drive profits in the privatised Royal Mail.

The Royal Mail also insists that there will be no compulsory redundancies. That is welcome, but the closure programme has already forced hundreds of staff to move workplace at a time when changes to the pension scheme are making working relations difficult for thousands of postal workers. I accept that as the type of post changes to more parcels purchased online, so must Royal Mail’s process. We might therefore expect to see a clear plan to adapt, relocate and improve delivery offices where there is need to provide more parking or parcel storage, but the current programme of closures has no timeline and no agreement, and there has been no overall public communication.

I welcome Royal Mail’s efforts to leave parcels safely with trusted neighbours and to offer quick and easy redelivery or pick-ups from local post boxes or facilities, and I am sure that can go further. However, although those options suit some people, for many—especially those in difficult-to-access properties or unpredictable working patterns—they are not appropriate. Everyone, including Royal Mail, knows that people still need collection points. Given the volume of mail we are talking about, that will normally need to be a delivery office. For example, in parts of Sheffield the closures are forcing some people to travel five miles through pretty terrible traffic to a city-centre delivery office with no free parking. Of course, not everyone owns a car, so we can imagine the anxiety that causes many constituents—in particular disabled constituents who have to make that journey, possibly by public transport. We all know about the reliability of that.

Delivery office and scale payment delivery office closures often mean that residents and businesses will receive much needed post later in the day. We need our nation to be as productive as possible, but later post will prevent work from being done. The programme is bad for our economy.

When the Government, together with their bedfellows, the Lib Dems, sold off the Royal Mail at an excruciating low price, there was a clear statutory promise under the Postal Services (Universal Postal Service) Order 2012 that a universal service would continue. I believe delivery office closures are the start of a slippery slope towards a reduced service, falling far short of that promise.

The universal postal service order is a statutory instrument that sets out Royal Mail’s responsibilities as a universal postal services provider. Article 4(d) guarantees that Royal Mail provides delivery offices as an option for the collection of undelivered mail. The closure of so many delivery offices is the start of a threat to the cherished and vital universal service. The order as it stands does not specify a distance from people’s homes or any specification for a collection service. What action does the Minister propose to take to protect delivery offices under the universal postal service? Does she agree that the order is far too vague on how Royal Mail must provide collection services?

The truth is this: there is little currently to stop the universal service from becoming universal in name only. The Government must give Ofcom, as the regulator, a stronger mandate under the universal service order to defend the wider network of postal deliveries. Otherwise, we face the prospect of Royal Mail becoming just another mail delivery company, delivering a service that gives residents and businesses their post later, and of longer journeys to collect undelivered mail.

The Labour party believes in a publicly owned Royal Mail: a people’s post, integrated with a strengthened Post Office, offering a wide variety of services including a post office bank. Such a move would provide a much better basis for an efficient service, potentially combining the collection of parcels with much-valued services to local people. The Government have still, after nearly a year, yet to respond to the submissions to their consultation on the future of the post office network. Will the Minister tell us when they will respond?

My hon. Friend the Member for Dulwich and West Norwood, who moved the motion, and the many other Members who have spoken so passionately have my support in their fight for their local delivery offices, which provide the basis of a high-quality local service. With a Labour Government, we will, once again, have a postal service working simply to provide a high-quality, affordable service: one that does not dress up cuts as improvements or flog off the Royal Mail estate to prop up dividends, but provides a first-class service for citizens to receive their mail at their door or in their local area.

[Mike Gapes (in the Chair)]

Before I call the Minister—I hope she will leave the mover of the motion a minute or two to have the final word—I remind her that we need to conclude the debate by 5.3 pm.