Further Reading
Member News
By Katy Clark MP - 18th January 2011
There is "huge concern" about the implications the current proposed privatisation of Royal Mail could have on the post office network, says Katy Clark MP.
It is far from clear that the legislation in its current form will protect our 11,500 post office network and that post offices will be at risk particularly in deprived and remote rural communities.
Consumer Focus fear that the privatisation could result in 4,400 post office closures. There is also concern about whether the standard rate for a stamp will be able to survive and that there could be a deterioration of service particularly for small business.
As someone who represents many mainland deprived communities and indeed rural islands what is clear is that the public are well aware of the vulnerability of our post office network and are rightly very suspicious of the assurances which are being given by the government.
The government may say there will be no closure programme but that does not mean there will not be closures. Indeed we have had many warm words from the government and the announcement of a public subsidy which should be sufficient to keep the network going until the next general election. However warm words and short term funding will not be sufficient to protect the network.
So far the government have been unwilling to amend the legislation which received its Third Reading is the Commons last week and will now be debated in the Lords to cement the link between Royal Mail and the post office network.
The Royal Mail provides post offices with about a third of their work. We are told it is "unthinkable" that Royal Mail would not use the network. However it is clear that there are many competitors who would be very interested in the work – supermarket chains and paypoint are obvious options. Surely it must be a real possibility that a privatised Royal Mail will tender the work either in whole or in part to the cheapest provider at some point in the future. Without such work many post offices will be unable to continue.
We hear much about alternative sources of work for post offices and indeed the last Labour government was doing considerable work to develop a "Peoples Bank" which have been dropped by the current government. We also know that the £70m contract for welfare payments will not be going to the post office.
If the Postal Services Bill becomes an Act we are creating a legislative framework where it will be quite possible and highly likely that Royal Mail will move its work in the future. Let's make sure that this is not allowed to happen.
Katy Clark was elected as Labour MP for North Ayrshire and Arran in 2005. A former UNISON legal officer, she currently sits on the House of Commons environmental audit committee.
Have your say...
Please enter your comments below.