Postal Services in Scotland after 2014

Pete Wishart Excerpts

Wednesday 10th July 2013 Westminster Hall

[Mr Davidson]

I am grateful for that point, because it was my final final point. Those of us who support Royal Mail remaining within the public sector—again, I extend the fist of friendship to my colleagues in the SNP; we should be campaigning together on this issue, on which we agree—need clarification from the Liberals about what the future holds for those whose services will be privatised and those who work to deliver those services.

Many postal workers have spent a lifetime in devoted service to Royal Mail. Many have worked above and beyond the call of duty. Many postmen and women in rural areas provide an essential lifeline to local communities, doing things far beyond the normal routine that we might expect in cities. What future do they have? Will this Government guarantee that there will be no deterioration in terms and conditions? Do they expect that private employers will be allowed to drive down wages and conditions as TNT has done? Why are they prepared to accept TNT handling this country’s mail at the moment on zero-hours contracts? We need answers to all those questions.

[Pete Wishart (Perth and North Perthshire) (SNP)]

I am enjoying the hon. Gentleman’s speech immensely. I am having great fun, and I thank him for securing this important debate. He challenged the Scottish National party about what we would do post-2014. He has challenged the Liberals and the Government about what they would do post-2014. What would the Labour party do? The Government are going to privatise today. Would the Labour party put Royal Mail back into the public sector? We need certainty.

[Mr Davidson]

At the moment, there is no certainty. As with a number of things, I anticipate that the Labour party will work up a manifesto for the next election. We will try to ensure that we have identified our priorities, and we will put those clearly before the people. In the meantime, we will do everything that we can to ensure that the change does not go through.

[Pete Wishart]

So you do not know either.

[Mr Davidson]

Well, that is an interesting point. Of course we do not know at the moment where we will be in 2014. We are putting all our efforts into ensuring that privatisation does not take place, so we are focusing on that. It is a bit like the question of the bedroom tax. Nationalists are calling on Labour to clarify whether we will reject it in 2015, when at the moment, the SNP could be doing something about it in Scotland by helping local authorities but declines to do so. It could pay the costs of the bedroom tax to local authorities and social landlords now, but it refuses.

That is the difference between us. At the moment, we are relatively impotent, regrettably, because we are not in power here or in Holyrood. The power lies, in this case, with the Conservatives and their front men and women, the Liberal Democrats. Did I mention that it is surprising to me that the Liberal Democrats are fronting the privatisation of Royal Mail? What a scandal that is. People ought to be aware of it—[Interruption.] There is no point in the Minister shaking her head. She is letting her tresses flow back and forth; I wish I could do that. None the less, it is a fact that the Liberals are selling off the Post Office—[Interruption.] Royal Mail; I apologise. We are opposed to that.

Mr Hood, I know that a large number of other Members want to speak, so finally—finally, finally—I thank you for your chairmanship of the debate so far.

--- Later in debate ---

[Mr Iain McKenzie (Inverclyde) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hood. I congratulate my hon. Friend the Member for Glasgow South West (Mr Davidson) on securing this important debate.

The twin worries for Royal Mail in Scotland are privatisation and separation; both are equally worrying for a high-quality service that we have come to love and expect. As I am sure we are all aware, a number of questions have been raised on a variety of subjects regarding Scottish independence from the United Kingdom, ranging from EU membership, NATO, currency, passports and many other universal British institutions. The list is extensive. We ask such questions to scrutinise the plans of those who would break up the UK and challenge their scaremongering. Today, we add Royal Mail to the list of questions about what will happen. Royal Mail is an institution residing firmly in that list. We should be told how well that important service would function if it were retained in an independent Scotland.

Currently, Royal Mail has 11,500 branches across the UK and employs thousands of people throughout Scotland. It is a crucial service, ensuring that UK businesses and the economy run smoothly. For example, Royal Mail estimates that it can deliver an average of 84 million items of mail every working day. There is no disguising the scale, the efficiency and, ultimately, the importance of that institution across the United Kingdom. Royal Mail serves not only big cities but the far-flung areas of our country. The price of a stamp guarantees delivery, regardless of difficulties encountered from dispatch to destination.

To give a bit of history, it all started way back in 1635 when Charles I made the postal service available to the public, with the cost of postage being paid by the recipient; I hope that that does not give the Government any idea. However, it took a further century before the uniformed postie was seen on the streets, delivering door to door—something that we have become accustomed to and expect from our postal service.

Upon the Union of the Crowns, one of the King’s first acts in London, where he had decided to move to and set up home, was to establish the royal postal service between London and Edinburgh. At last, Scotland was part of a regulated postal service and, as time passed, Scotland grew in confidence, prosperity and assurance of a reliable communications service throughout the UK. Eventually, all across Scotland, we have come to use and rely on Royal Mail.

The service has grown and changed over the centuries. Royal Mail is now an integral part of business and private life; we simply could not imagine life without it. I am of an age to remember the GPO—the General Post Office—an organisation inclusive of Royal Mail and British Telecom. British Telecom was part of the ’80s privatisation drive, which is being pioneered again, but even the late Mrs Thatcher considered Royal Mail worth keeping.

The universal nature of delivery means that small businesses can rely on Royal Mail and have confidence in the quality of service and delivery, regardless of where they reside on the UK map. We must debate what the Royal Mail would look like if Scotland separated from the rest of the United Kingdom. The questions that need to be encompassed include whether there will be continuity of employment in the mail service and whether the number of depots and jobs all remain in Scotland post-independence—or might we see job losses?

[Pete Wishart]

Was the hon. Gentleman not paying attention to the news this morning? The Government are going to privatise Royal Mail. What would he prefer—the Tories and the Liberals, with their privatised Royal Mail, or us, the people of Scotland, running the postal service to our requirements?

[Mr McKenzie]

Labour is the only party to defend the universal service obligation. The debate is about what a postal service in Scotland would look like post-2014. The two challenges to Royal Mail are not only privatisation, as I have rightly pointed out, but separation.

In my constituency, the sorting office at Knowe road employs about 150 people working full time, with some part time. Working in teams, they deliver throughout my constituency, which is diverse, with some rural and mostly urban communities. Daily, the Inverclyde office receives mail by road from Glasgow, where the large city sorting depot employs many hundreds of people more, directing the mail across the country, and that is replicated in all Scottish cities.

Individually, our engagement each day remains with the postie. Well known to the community, posties deliver to our doors in all weathers, six days a week, and that brings me to the quality of service and the delivery six days a week. Under privatisation and, as well, an independent Scotland, would we be guaranteed a six-day service? Could it be maintained? After all, we have come to expect our Saturday mail delivery; if ended, what would be the impact on business?

The price of a stamp has already been discussed by my hon. Friend the Member for Glasgow South West. What price for first and second-class stamps? Would there be a first and second-class service in a separate Scotland? Would sending a letter or document to the rest of the UK be classed as overseas mail? If so, how much would that cost? Those are all questions that we need answered. Furthermore, how would that affect Scotland’s businesses? Has all that been taken into account?

What of our postcodes in an independent Scotland? Postcodes are used to identify our homes throughout the UK quickly. Would they be retained in their present form or, as we have already heard about in Ireland upon separation in 1917, would the postcodes be changed? What would our postcodes look like?

There is a risk that a new mail service would not be anywhere near the size, scale and complexity of Royal Mail at present. Royal Mail is clearly vital for business, the economy and our everyday life. Much as we need electronic mail to speed and support business, we still require the physical mail. The rise of the e-mail and its challenge to the physical letter is now being outweighed by the rise of online shopping and the resultant increase in parcel delivery. Will Scottish online shoppers be penalised? Independence will mean being outside the UK, so will the cost to deliver increase?

Surely, before the Scottish people vote on the most important constitutional decision in their history, such questions need to be answered, and as soon as possible. Who knows, but, bizarrely, the ever-increasing popularity of the postal vote could contribute to keeping the UK together and Royal Mail in Scotland?

This morning, we have highlighted yet another concern for Scottish people—the impending referendum in 2014 and the future of Royal Mail beyond 2014. From applying a stamp to a letter to recognising the postie coming down our street in distinctive uniforms and vans, we have become accustomed to and reliant on the Royal Mail service as part and parcel of being in the UK. After all, one of the first acts of the Scottish King on coming to London to unite the Crowns was that he sent the royal mail north. Like many Scots, he recognised a good thing when he saw one; we still recognise Royal Mail as a good thing, and we want to keep it.

Disruption to Royal Mail services across the UK will impact not only on the Scots, but on the rest of the UK. We must hear how the SNP intends to sign, seal and deliver a mail service in an independent Scotland.