Universal Postal Service

Debate between Mike Weir and Tom Blenkinsop

Thursday 17th July 2014 Commons Chamber

[Mr Weir]

I am not sure that the present Government are sane political parties, but I will let that one go.

The Government will rightly point out that the 2011 Act enshrines the USO in law for the first time. That is true, but during the passage of the Act many of us asked specifically what will happen if the company comes back and says that it can no longer sustain the service. Royal Mail has been privatised, investors have made their profits, and we may well be about to explore the answer to that question.

[Tom Blenkinsop]

When I asked the current Defence Secretary whether the USO could be changed by statutory instrument, he said that was not the case. He later wrote to me saying that it was the case.

[Mr Weir]

The hon. Gentleman is right, and as another Member said at that time—I think it was the Minister—such a measure could be rushed through in a wee room upstairs very quickly. That is true, and that is the danger we are now in with the whole process. Will the Minister make it abundantly clear today that protection of the USO was an essential condition of that privatisation, and that whatever the outcome of the review she will not agree to any diminution of the USO? As I said, that could be an outcome of this process, and sometimes we should beware of what we wish for.

Postal Services Bill

Debate between Mike Weir and Tom Blenkinsop

Wednesday 12th January 2011 Commons Chamber

[Mr Weir]

I do not agree with that, as I think Post Office Ltd will be very much the junior partner in the negotiation. I would ask whether Royal Mail rather than the Post Office is the brand for letter delivery, and Royal Mail will focus on how it delivers its mail business through the Royal Mail brand. In an earlier intervention, the hon. Gentleman made the point that an alternative provider could go to Post Office Ltd, but I ask him to consider whether that is realistic, given that only Royal Mail as the statutory provider of the universal service obligation will be required to have a nationwide delivery service. Other companies do not go in for that, and most of the present business for alternative providers relates to bulk mail delivery, not individual delivery. That requires a different business model from the one currently operated by Royal Mail.

[Tom Blenkinsop]

Another point is that there seems to be a massive assumption that these independently-owned post offices will suddenly opt into this mutualised model. A significant number of independent post offices will not want to do that; they enjoy the profits and the livelihoods they earn from their businesses.

[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.