Royal Mail

Debate between Vince Cable and Damian Collins

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

The hon. Gentleman says he opposes what we are doing, but why does he not say that he wants to reverse it? That is the question. There is a 10-year agreement, which offers a remarkable degree of security for the Post Office. Frankly, my mind boggles at the fact that the Opposition regard 10 years as inadequate.

[Damian Collins (Folkestone and Hythe) (Con)]

I welcome the statement and think it offers the best future for Royal Mail. Does the Secretary of State agree with the remarks made by the chief executive of Royal Mail before the Postal Services Bill Committee? She said that, without privatisation,

“you will see a continuation of what have been chronic problems for Royal Mail.”––[Official Report, Postal Services Public Bill Committee, 9 November 2010; c. 4, Q3.]

[Vince Cable]

There will be—and those chronic problems are most manifest in the fact that in five of the past 10 years Royal Mail has made losses. It is not a viable enterprise and is unable to sustain the universal service obligation. This gives it the real opportunity to do that.