Royal Mail pledges ‘absolute rubbish’

Feb 27 2009 by William Green, The Journal

GOVERNMENT pledges about the Royal Mail’s future following any partial sell-off were yesterday dismissed as only being worthy of “toilet paper”.

The claim from North East CWU union official Paul Clays came as Business Secretary Lord Mandelson published the Postal Services Bill, which confirms moves for a partial sell-off.

The Bill said the Royal Mail will be enshrined in legislation as a publicly-owned company, with no Government able to change this status without further primary legislation. But Mr Clays said: “The only paper it will be worthy of is in a toilet as in toilet paper. It is absolute rubbish. We are having a serious debate and Mandelson puts this out. This is absolute nonsense. We think not only will it lead to worse services, it will lead to no Post Office.”

Union bosses earlier this week warned postal services in Northumberland and Durham could be reduced to just twice a week if Royal Mail is privatised.

But the Government said the universal service – letters collected and delivered anywhere in the UK, six days a week, for a single, affordable price – will be written into the legislation.

The news came as more Labour backbenchers backed a Commons motion - which now has 158 signatures – opposing the Royal Mail sell-off.

And signatory Dave Anderson, Labour MP for Blaydon and a ministerial aide, is now trying to arrange a meeting with Lord Mandelson over the issue. In a private email sent to colleagues, the Labour MP said other ministerial aides shared his concerns and hoped to arrange a meeting with them and the Business Secretary as had occurred with the Chancellor over the abolition of the 10p tax band.

Last night, Mr Anderson said: “I sent an email and it was done with the intention of working within the Labour party to find a solution that is suitable to all. That is still my intention.”

Blyth Valley MP Ronnie Campbell, who also signed the motion, said the Government’s promises were not worth the paper they were written on.

“If you have got it half-privatised, another Government can come along and re-write the legislation. I will have to have a lot of persuading and I am not persuaded at this time,” he added.

Leaders of eight trade unions also warned part-privatisation of the Royal Mail was “electorally unpopular, politically unwise and damaging to the concept of universal service provision”.

And The Journal understands there are fears the CWU and other public sector unions could disaffiliate from Labour, leaving it with a major financial headache.

Anti-privatisation candidates could also be fielded against Cabinet ministers in elections.

The Bill confirmed postal regulator Postcomm will be abolished and its responsibilities switched to Ofcom, which regulates the communications industry.

Unlike current regulation, Ofcom will have to give precedence to maintaining the universal service if there is a tension with any of its other functions, such as promotion of competition.

Ofcom will have powers to clarify Royal Mail’s costs and ensure other companies’ access to its network is regulated on a fair basis.

The Bill also paves the way for a compensation fund so the Royal Mail’s competitors would have to pay towards maintenance of the universal service if it put an unfair burden on the company after modernisation.