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The government has issued a statement in a press release today as it publishes its policy on part privatisation of the Royal Mail argueing that Royal Mail will remain in public hands. However, the CWU warns of service deterioration and job losses if postal privatisation goes ahead.
"There is still no convincing argument for privatisation. Any private stake in Royal Mail will take money out of the business for private profits and lead to a reduction in services and rise in consumer prices.
Privatisation will also trigger thousands more jobs losses at a time when the government should be leading on job retention. The British public does not want its postal service to be flogged off. It's also clear that there's no support among Labour MPs for this move, which is why Lord Mandelson introduced it in the House of Lords. We welcome investment and pension security but privatisation is not a necessary part of the equation." The Governments press release reads: Government To Secure Future Of Postal Service The Government today published a Bill and detailed policy statement to secure the future of a successful publicly-owned Royal Mail. Business Secretary Lord Mandelson said the Postal Services Bill is vital to maintaining the six-day-a-week, fixed price ‘universal postal service’, which is under threat. The Bill keeps the post office in public ownership, while allowing for a strategic partner to bring experience and investment to transform the Royal Mail, with the Government taking on its pension deficit.
"Our policy will keep Royal Mail in the public sector and this legislation makes this clear. The Royal Mail will run out of money to sustain its current universal, six day service unless its pension fund deficit is solved and its business transformed. Faced with this challenge, I am determined to protect the universal service and secure Royal Mail’s future. The public deserves the best possible mail service. And if we are asking the taxpayer to take on Royal Mail’s huge pension deficit, it must deliver a full, improved letters service in return. Royal Mail is lagging behind its international counterparts and this needs to change. A partnership must not just bring access to capital, it must bring expertise. A partner experienced in driving forward change in postal companies will help transform it.” The Government’s policy will:
The Government’s policy follows recommendations from Richard Hooper’s independent review of postal services which reported in December 2008. The report’s stark findings warned that Royal Mail’s precarious finances were placing the universal postal service in grave danger, with losses likely to rise. The report found major change is required at Royal Mail to adapt to the structural changes occurring in the market. However, the report predicts that, with the appropriate action, there is a positive future for postal services, with a range of trends creating new opportunities, including the growth of home-delivered on-line shopping on-line. In addition there are notes explaining the policy available as part of the press release, along with the bill to privatise Royal Mail. Downloads available here: |
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Billy Hayes, CWU general secretary, said: "This Bill is rightly being called controversial. There are no surprises and no new concessions at all in the draft Bill published this morning.
Business Secretary Lord Mandelson said the Government’s plan was the only credible option to save the Royal Mail, which has been severely affected by decreasing mail volumes due to the rise of email and online technologies.