ALAN REID SUPPORTS ROYAL MAIL SELL OFF

[TrueBlueTerrier]

http://www.dunoon-observer.com/index.ph ... l-sell-off" onclick="window.open(this.href);return false;

AFTER the bill to privatise Royal Mail was introduced in the Queen’s Speech to the Westminster Parliament on Tuesday, local MP Alan Reid said that he supports the proposal – despite wide-ranging opinion that it would damage postal services in Argyll and Bute.

Opponents fear that privatisation could spell the end of Royal Mail’s Universal Service Obligation, which guarantees that a uniform rate is charged for delivery to all parts of the UK, and that all parts of the UK are guaranteed a daily delivery. This would clearly affect rural areas such as Argyll and Bute.

The previous Labour government abandoned Royal Mail privatisation proposals after a threatened backbench revolt. Now the new coalition seems determined to push it through, led by Vince Cable and his Liberal Democrat colleagues.

Communications Workers Union (CWU) general secretary Billy Hayes said: "Privatising the Royal Mail would be a deeply unpopular move. People and businesses rely on mail services and in particular the universal service which guarantees delivery to every address in the UK whether it's rural, urban, residential or commercial.

"Making private profit out of public services is wrong and it will come at the expense of services, jobs and price rises. What Royal Mail needs is government backing, not a return to an old-fashioned, discredited selloff."

Argyll and Bute MSP Jim Mather said: “My colleague at Westminster, Mike Weir MP, has been active over the years in warning of the problems that have been put in the way of a successful Royal Mail operation by the interference of successive governments.

“In spite of this Royal Mail has managed to complete two successive years of profitable operation, although immense problems still exist with the substantial deficit that has been allowed to develop in the Post Office Pension Scheme. It is ironic that the proposal to sell off part of this operation should now come from the Liberal Democrats.

“What is proposed will spell the beginning of the end of the Royal Mail concept and open up the doors to substantial job losses, a threat to the principle of the universal service obligation and inevitably a decline in the working conditions of postal workers. Services that are attractive to potential buyers will not be those that carry a high element of social responsibility.

“Rural and island services are likely to be threatened with reduced schedules linked to increased costs.

“The local MP in Argyll is already on record as being strongly opposed to schemes for even leasing operations within our public utilities however stringent the safeguards to protect staff and services. I will be interested to learn how he can now give any support to his colleagues in government for actions that will have seriously damaging effects on electors across Argyll and Bute.”

After being asked if he supported, and had always supported, the proposal and why now was the time to sell, Liberal Democrat MP Alan Reid told the Standard: “Part privatisation of Royal Mail has been the policy of the Liberal Democrats, Conservatives and Labour for a long time.

“The only reason that Labour postponed their part privatisation plans last year was because the state of the market meant they would not receive a good enough price for the stake they had planned to sell. Now that we are coming out of recession it should be possible to get a better price.
“Under our plans the Universal Service Obligation will remain.

“All businesses need to invest in new plant and machinery if they are to stay in business. Labour introduced a competitive market in the mail business, but failed to invest in Royal Mail. This has left it in a position in which it finds it difficult to compete with the private sector and has lost a lot of contracts in recent years.
“Royal Mail's profits are not sufficient for the investment required to sustain the Universal Service Obligation. The only alternative to private capital coming into Royal Mail would be more taxpayers' money, but, as Liam Byrne wrote in his farewell note, Labour have spent all the taxpayers' money and there is none left. So, private capital is the only way to save Royal Mail and the Universal Service Obligation.”

[Stormproof]

All businesses need to invest in new plant and machinery if they are to stay in business.

We would of had new plant & machinery years ago if successive governments had'nt kept milking the RM cash cow