Universal Postal Service

Tom Blenkinsop Excerpts

Thursday 17th July 2014 Commons Chamber

[Katy Clark]

My hon. Friend makes an important point. Perhaps we can enter into that debate on another occasion.

The Government are allowing TNT to cherry-pick the services in more profitable city areas, where its presence has already led to reductions of 14% to 15% in the use of Royal Mail.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

I apologise for missing the first two minutes of my hon. Friend’s speech in this very important debate. Does she accept that, although Labour Members voted to maintain the public ownership of Royal Mail, it is now notionally a private company? The USO is about providing a service, irrespective of the company that does it, across the country. There has to be an understanding from the Government, which was missing in Committee when Labour Members argued vociferously that this type of situation would occur, that we need to use a levy on TNT and other private sector companies or look at the structure of how mail is distributed across this country, on a regional basis or otherwise, to make sure that provision is universal.

[Katy Clark]

My hon. Friend is absolutely right. Many predicted that we would face this problem. Indeed, we are here to give a warning that it is already beginning to happen and that action is necessary now—we do not have time to wait. He is absolutely correct that that action is required whether Royal Mail is in the public sector or the private sector—given that most of it is not held by the Government or the work force.

--- Later in debate ---

[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.