Royal Mail deliveries could be twice a week

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POSTAL services in Northumberland and Durham could be reduced to just twice a week if Royal Mail is privatised, union bosses warned last night.

The Government was told delivery services would be put at risk if Dutch delivery company TNT is allowed to take over in a part privatisation of Royal Mail.

Members of the Commercial Workers’ Union, who yesterday protested in Westminster against the proposed changes, said TNT had proved in the Netherlands that it “puts profits before standards”.

Royal Mail could be partly run by TNT if the Government moves ahead with its privatisation plans, a move ministers say is necessary to free up cash needed to fix a £9bn pension black hole.

Postal union bosses said many Dutch rural customers served by TNT were only delivered to twice a week.

Billy Hayes, general secretary of the Communication Workers Union, said: “Today is about people’s democracy against the political elite.”

Labour MPs have joined the calls for Royal Mail to remain in public ownership or face an end to the six-day service.

One MP, John Grogan, said, “If you look at the seven European countries where they have a part-privatised service, none have a six day delivery. Any company that gets part of Royal Mail might well see dropping Saturdays as a way of making more money.”

Berwick MP Sir Alan Beith has also warned of the risk to rural services.

He said: “It is essential that we maintain the nationwide service that Royal Mail currently provides. But we can’t ignore the enormous financial problems that it faces”. The Liberal Democrats have proposed some privatisation but only with the Government and employees as majority owners.

Northumberland Council leader Jeff Reid said the county would struggle to cope with “yet another post cut back”. He said: “We are one of the most sparsely populated parts of the country and it does not take much for a business to look at costs and start thinking of how to cut back on spending here.

“The Post Office and the universal mail service is a hallmark of civilisation and once again we look like the Government would rather overlook our needs. How many more times will they get away with this?”

The move has led many Labour MPs to threaten to rebel against party bosses.

Last night Newcastle central MP Jim Cousins said: “The policy of the Labour Party, which was confirmed at our conference, is for a wholly publicly owned Royal Mail, and to introduce part privatisation will be simply bringing about a stalking horse for a complete sell off. “Yes there is a problem with the pension scheme but we have known that for years and it does not justify this move.

“What we have to do now is end this spiral of decline in Royal Mail services and when I saw this Early Day motion I did so as more than just a gesture.

“This is a serious issue and one in which I am at the moment likely to vote against the Government on.”

The Government’s Business Secretary Lord Mandelson said: “The top and bottom line is that our policy will keep Royal Mail in the public sector and our legislation will make this clear. But 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.”

NORTH East Labour MPs have warned they will rebel against the Government rather than help “bring about the sale of a national asset”.

Last night the Government was preparing to go up against 125 of its own MPs in a bid to force through a part-privatisation of Royal Mail.

And pension fund bosses have told protesting workers that their retirement plans will be thrown into chaos if a private company does not help out.

But many MPs, postmen and union bosses have warned it is the first step towards full privatisation.

Hundreds of postal workers and members of the Communication Workers’ Union attended a rally at Methodist Central Hall in Westminster.

And the Royal Mail protesters have attracted the support of several North East MPs who have signed or plan to sign an Early Day Motion calling on the Government to reject privatisation proposals and back the six-days a week delivery service. Blyth MP Ronnie Campbell has promised to oppose the plans when the Bill is put before parliament.

He said: “The workers will suffer and the service will suffer if we privatise Royal Mail. I don’t think the service in Europe, where some of these other companies operate is as frequent as ours, and I don’t think the workers will have the same rights as they do now and the same conditions if they are privatised. I think if we allow this to go ahead it will be the first step in the full privatisation and I will not be voting in favour of this.”

And Easington MP John Cummings warned that the Royal Mail service was a takeover target for businesses looking to make money at the expense of service levels. He said: “It doesn’t take a man with seven brains to realise that if companies are queuing up to look at buying into Royal Mail then there is something there worth keeping hold of and we need to do what we can to secure that.

“There is a pensions issue but there is a pensions issue across large parts of the public sector.

“We can’t just say that part privatisation is the easiest option so lets do that. It doesn’t work out like that. It would be a mistake to sell off this service.”

Letter is at the centre of privatisatin row

A WARNING letter over spiraling pension payments to Royal Mail staff was last night at the centre of the privatisation row.

Union bosses have accused the Government of trying to blackmail their supporters into accepting the need for the part privatisation by leaking a letter from pension bosses.

The Government used the letter to back up its argument that plans for a partial sale of the service had to go ahead.

In the letter, Jane Newell, chairman of the Royal Mail trustees, said the previously-quoted deficit of £5.9bn could be much higher, threatening future payments to postal workers.

However, MPs said the Government had already agreed to take on the pension liability, meaning any buyer would not be saddled with the costs.

Blaydon MP Dave Anderson said the debate around pensions costs was diverting attention away from the real issues.

Ms Newell said in the letter that trustees were in favour of recommendations from last year’s Hooper report which called for a private company to be given a chance to bid for a slice of the Royal Mail’s business.

But one of the trustees later said that neither he nor any of his colleagues had even discussed the Hooper report and he knew nothing about the letter. The first I heard of it was when I turned on the radio this morning. I have spoken to other trustees and none of them have seen the letter. It is outrageous."

The trustee, who wanted to remain anonymous, said he believed the letter had "overstepped the mark" and he questioned some of the details included in the note.

"There is a political dimension to this letter. There is a meeting of the trustees next week which is now going to be very interesting."

Billy Hayes, general secretary of the Communication Workers Union, told the Westminster rally: "Today is about people’s democracy against the political elite."

He said the Labour Party had a manifesto commitment not to privatise the Royal Mail, which was now being threatened by Lord Mandelson’s plans, and accused the Business Secretary of "political cowardice" by bringing forward the bill into the House of Lords. "We are being bullied and threatened."

Royal Mail chief executive Adam Crozier told MPs on the Business and Enterprise Select Committee that the group faced declining mail volumes and an increasing pensions deficit, adding: "We are going to have to do some pretty difficult things otherwise the company will not survive."

Tory support

THE Government has been told it will only get the privatisation through Parliament with the support of the Conservative Party.

Shadow business secretary Ken Clarke, last night said: "Twelve years of shameful neglect by New Labour ministers have brought Royal Mail to its knees. We will support the part-privatisation plans, because what the taxpayer needs is a fully modernised and efficient postal service that can compete with the best in the world. It’s the best way to secure a future for Royal Mail and make sure that we can send mail anywhere in the country for the same price.

"We are ready to provide the Government with the majority that the Parliamentary Labour party won’t let it have, because it is the best way to save Royal Mail."

Planned years in advance

IN 2006 it became clear that the Government was planning to go ahead with cuts to the £190m subsidy to the Post Office network.

The decision followed an earlier round of closures in 2001 and immediately led to protests across the country.

Ministers had already okayed plans in 2004 to cut delivery services to just once a day.

Fast forward to 2006 and Royal Mail was told it will lose its monopoly and have to compete for business post.

By 2007 several thousand post offices across the UK were being reviewed as ministers looked to finalise closure lists.

By the start of 2008 the Government was accused of covering up the full list after it emerged details of which branches to go would be delayed until after the May local elections.

In Summer last year campaigns were under way across the region as villages and estates try to persuade ministers to save their branch.

But by the start of 2009 the Government had ordered the closure of 80 North post officers, and the final branches were closed this month.

'Unwinnable'

FORMER post office workers who lost their battle against the Government’s forced closures have warned Royal Mail protesters they face an "almost unwinnable fight".

As Royal Mail staff continue to drum up support against changes to the way post deliveries are managed, the last group to go up against the Government have lent their support. Last July Post Office bosses said they would close 80 branches across the North East, among hundreds to be closed down nationwide.

The money-saving plans prompted a nationwide backlash and led to campaign groups setting up across the region.

But despite this ministers went ahead with the closures, a decision many now think was inevitable.

Postmistress Wendy Thackray, of Norham Post Office, warned there was little chance of victory.

She said: "Good luck to the post men, and I really mean that, but just can’t see them standing a chance against the Government.

"You have to do this, you have to have the protest and see what you might get but really we know the Government has one thing in mind and you won’t change that.

"We’re seeing better business now than we did before the closure really because I think a lot of people have seen that they may lose their village shop and so have rallied around it, so fingers crossed that will last.

"But the service they replaced us with is just not used that much."