Postal Services Bill

Debate between Tom Blenkinsop and Robin Walker

Wednesday 12th January 2011 Commons Chamber

[Mr Robin Walker (Worcester) (Con)]

Does the hon. Gentleman accept that the alternative of bringing credit unions into post offices is very attractive and that the opportunity for credit unions to work with post offices creates a positive alternative to the banking approach?

[Tom Blenkinsop]

It certainly is an alternative and I take it on board as an option. However, in and of itself, the post bank would not necessarily be in conflict with the credit union. Other Government policies have undermined and withdrawn funds from credit unions. That happened recently with the north-east moneylending team, which was within the Minister’s remit.

Many postmasters fear the worst—that the Bill will be passed—and have made a plea to Government to consider at least extending the contract to 10 years. That request has been knocked back by the Government on the basis that it would not be compatible with EU regulations. However, I am assured by postmasters who investigated the matter that that is merely an excuse. The Government’s position regarding BSkyB and the fact that the potential buyer of the Royal Mail could own 90% of the company leads us to ask what the difference is between a state-owned monopoly and a private monopoly.

Postmasters have also referred me to the rail franchise contract as an example of how such things can be and, indeed, have been done. I cannot think of any reason why the Government are willing to grant 10-year rail franchises, but will not do something similar for the Royal Mail. A 10-year agreement would be advantageous for a number of reasons. First, in the German and Dutch models, which have been referred to as examples of best practice by Ministers in Committee and today, legislation stipulates the number of national access points. It appears that the Minister has more of a problem with German geography than with the potential German ownership of the Royal Mail. Without such a clause, a minimum 10-year deal is necessary to reassure those running existing post offices, which are mainly independently owned.