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Minister insists Post Office 'not for sale'

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By Nik Darlington - 23rd July 2010

Parliamentary researcher Nik Darlington reports from the meeting of the parliamentary group on Post Offices.

The new postal affairs minister, Ed Davey, has said that Post Office Ltd is "not for sale" at the first meeting this parliamentary session of the all-party parliamentary group on Post Offices.

Davey announced that he has secured £180m from the Treasury for the Social Network Payment next year. This funds the non-commercial elements of rural post offices and is an improvement on the previous figure of £150m.

Davey insisted that Royal Mail is in a "precarious position" and that the "status quo is [not] tenable", suggesting that part-privatisation is still very much on the table, as per the coalition's programme for government. However, the Royal Mail and Post Offices are two very different organisations and the latter will remain in public ownership.

Strong words on the part-privatisation of Royal Mail were delivered by George Thompson, general secretary of the National Federation of Subpostmasters, the only organisation recognised by Post Office Ltd to negotiate on behalf of subpostmasters in the UK.

Thompson described privatisation as a "massive worry" for post offices as more than one-third of their income derives from Royal Mail deliveries. He then delivered a veiled challenge to Davey, stating that "strategic parts of UK plc should be owned within the UK".

This point was reiterated by Russell Brown (Lab, Dumfries & Galloway), chairman of the APPG who said: "We do need to keep Royal Mail and our post offices as UK businesses."

The privatisation issue remains a highly contentious matter since former business secretary Lord Mandelson tried to usher through a Bill in the last Parliament but had to back down in the face of strident opposition from the Labour government backbenches.

The new Liberal-Conservative coalition want to revive the notion and sell off part of Royal Mail to introduce new technology, expertise and more efficient business practices. Any injection of private cash is most likely to come from overseas bidders, such as the Dutch company TNT.

Nevertheless, whilst certain parties might be gearing up for a battle with the government over possible foreign ownership of Royal Mail, Thompson did signal his full support for Davey's plans for post offices, saying: "I have heard all these promises before and governments have never delivered."

"[However] I think that Ed Davey is committed, genuine and that he is going to deliver."

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Article Comments

The Woking area postal service is abominable. It has been denounced on BBC Surrey radio, the local councillors have had discussions with the sorting office and still the deliveries are a mess. I suppose someone will have to die as a result of the service before anything is done.

Take these two recent examples for my Wife and myself, both could have had serious consequences but fortunately didn't.

My wife had a prescription posted to her on 3rd June from our doctors surgery which is no more than half a mile from us. They would normally get us to collect a prescription but this one had a report with it, so it had to be posted. She received it on the 14th. Fortunately the treatment is long term and starting the course two weeks late was not a problem, but it might have been!

The Royal Surrey sent me an appointment notification on the 8th June, by chance I rang them on 14th to enquire about progress and they told me I was expected that morning. After a lightning dash I just made it for my appointment. The appointment notification letter arrived on the 18th. It was stamped across with 'First Class' and yet it took 10 days to get from Guildford to Woking. I have sent postcards from around the world that have arrived in half that time.

James Warren
23rd Jun 2011 at 6:51 pm

What has happen to our post offices?

You closed our sorting offices, Banbury and Oxford in Oxfordshire.

A better service you tell the customer - what a load of rubbish. Our post is deliverd in Adderbury around 2.30pm or 3.00pm instead of 9.30am or 10.00am.

Once upon a time there were three delivery per day. The services are nothing but a sham, with letters not being delivered and if you want to complain all you get is a form to fill in.

Thanks to your cutbacks we have to travel three or more miles to a Post Office, which is not good for people that can't drive and there isn't a bus.

Anne Willaims
5th Sep 2010 at 2:01 pm

'Not for Sale' do not believe them, they said they would not reorganise the NHS but what have they done, the biggest reorganisation since 1948! When will the press and public wake up to the fact that 'Social Enterprise' means privatisation. It will take Hospital Trusts out of the NHS.

Kathleen Flewker
23rd Jul 2010 at 6:12 pm

The separation of the Post Office from Royal Mail would be massively damaging to both institutions and at CWU we believe the government needs to rethink its unpopular privatisation agenda for Britain's postal services.

New rounds of post office closures will inevitably follow the separation of Royal Mail from Post Office Limited causing a dramatic loss of service across the country and a backlash from the communities affected. MPs in marginal or rural seats would be most likely to see the disadvantages of the government's proposal if it goes ahead.

Ed Davey fails to mention the strength of Royal Mail, which has been more successful in the recession than privatised rivals like TNT and Deutsche Post in their own markets.

Communication Workers Union
23rd Jul 2010 at 1:27 pm





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