The Commons debated the Second Reading of the Postal Services today.

My thoughts are below:

The Royal Mail has suffered problems for many years. Not only is the letters market in long-term decline, but the Royal Mail continues to lose its share of this shrinking market. Sadly, because the last Government did not grasp the nettle, it has a historic pension deficit of over £10 billion.

For the same reason, Royal Mail still processes just eight per cent of its letters automatically, with the remainder sorted by hand.

Equivalent European operators process 85 per cent of their mail automatically.

Clearly, there has been a structural under-investment in the Royal Mail for many years.

To his credit, Lord Mandleson wanted to change this, and to attract investment from the private sector. But the Government was more Ethelred the Unready than Nixon in China, and eventually abandoned his plans, in the face of opposition from members of his own party and the trade unions.

On Sunday, October 24th, the Shadow Business Secretary told the Guardian that he is concerned about rural post offices closing down.

I share his concern.

But surely he must recognise that the Royal Mail's fortunes did not suddenly worsen on May 6th?

Closure of post offices in Essex was terrible under the last Government.

One innovative scheme to save Post Offices was led by Essex County Council a few years ago.  In the teeth of fierce opposition from Hon. Members opposite – the former Government – the Conservative-led Council saved more than a dozen rural Post Offices from closure. They did this because Post Offices are a crucial community facility. 

In many areas in Essex, they are one of the last community institutions to survive. 

The Community Conservatives in Essex understood that Government must not always be a spectator on the sidelines. 
Sometimes it has to get stuck in on the pitch, and challenge the status quo.
The long-term goal in Essex, was to make the Essex post office network more sustainable and attempt to insulate it from any further closure programmes. 

This second phase is about footfall. 
Essex are increasing the level of footfall into their local Post Office network, by putting in Council services and other attractions. 

I hope that the Government's Bill will make allowance for local schemes of this kind, if Councils wish to pursue them.

There are a few myths that need to be addressed:

Postmen and Postwomen in Harlow will want to know how they can benefit from modernisation.

First of all, they will share the wealth.
At least 10 per cent of shares will go to employees in the future.

This will be the largest employee share scheme of any privatisation in history: larger than British Telecom, British Gas or British Airways.

It is a co-operative revolution.

Secondly, the 11,500 Post Office branches are not for sale and the Government have announced that there will be no further programme of closures.

Thirdly, we are at last facing up to a historic problem. Shortly after Lord Mandelson's return to Government in October 2008, the Telegraph quoted him as saying about Royal Mail:
"Frankly, 10 years on, I was surprised this was still an unresolved issue."

Fourthly, the Government's proposals are welcomed by Royal Mail. They are not afraid of competition: they welcome it.

Fifthly, the proposals protect the one-price-goes-anywhere stamp, for the UK's 28 million homes and businesses.

There is a clear choice between the Government and the Opposition, on this issue.

But I hope that there is some common ground on mutualisation: converting the Post Office into a mutual structure in a similar manner to the John Lewis Partnership or the Co-operative Group.

I want to see a Royal Mail, and a Post Office, that is ultimately owned and run by employees, sub postmasters and local communities. One in which a fair share of the profits goes into the pockets of the hard-working postmen and postwomen in Harlow.


Posted By Rob's Blog to Rob's Blog at 10/27/2010 11:21:00 PM