SNP:Royal Mail must remain public

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The SNP have called on the UK coalition government to “come clean” over plans for privatisation of Royal Mail after a parliamentary answer received by SNP MP Mike Weir raised questions about the government’s plan.

Following the answer SNP Postal Affairs spokesperson Mike Weir MP is seeking clarification of the government’s intention following comments that they were looking at a “John Lewis” solution.

A parliamentary answer from Ed Davey, the Postal Affairs Minister, confirmed that the government were looking at “an injection of private capital into Royal Mail, including opportunities for employee ownership.” However, Mr Weir pointed out that John Lewis was a partnership which shared profits amongst the partners.

Commenting, Mr Weir said:

“Talk about the John Lewis model is simply as a smokescreen for privatisation of Royal Mail. It is clear that the Tories and Liberals are seeking to privatise the business and offer workers a small amount of shares to give the impression of employee participation rather than complete employee or continued public ownership .

“The UK government need to come clean – this is nothing more than the same old privatisations operated by the Thatcher administrations. When the utility companies were privatised customers were offered shares, but the reality now is that all but two of the companies have been taken over by major foreign energy giants.

“If the UK government are allowed to go down this route it is only a matter of time before the company comes wholly under private control. Such an outcome would be a disaster and inevitably lead to strong pressure for relaxation or abolition of the universal service obligation.

“The USO is vital to rural areas of Scotland and if it was to be downgraded many areas might find themselves with no effective postal service. Not only would that reduce the service to individuals it would seriously damage efforts to promote businesses in rural areas.

“Royal Mail cannot be regarded as simply another company. It contains a vital social element that must be protected.”



The parliamentary question by Mr Weir is set out below:

Mr Weir: To ask the Secretary of State for Business, Innovation and Skills what percentage of ownership his Department plans to make available to (a) employees of Royal Mail and (b) private shareholders under his Department's proposals to create a shared ownership structure for Royal Mail. [8694]

Mr Davey: The coalition Government wish to secure the future of Royal Mail and to ensure the maintenance of the universal postal service. As set out in the coalition agreement, we will therefore seek to ensure an injection of private capital into Royal Mail, including opportunities for employee ownership. A Postal Services Bill to implement these measures was subsequently included in the Queen's Speech and we will announce further details of our plans in due course.