Royal Mail Oral Answers to Questions:Share scheme

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Roger Williams (Brecon and Radnorshire, Liberal Democrat)

What plans he has to implement a share scheme for Royal Mail employees.

Michael Fallon (Sevenoaks, Conservative)

Parliament decided two years ago that employees of Royal Mail should share in its success. It would be wrong to deny employees this any longer. They should be sharing in the company’s success and dividends, and it is our intention to have such a scheme in place at the time that we conduct a sale of Royal Mail.

Roger Williams (Brecon and Radnorshire, Liberal Democrat)

I thank the Minister for that encouraging reply. The better financial performance of Royal Mail owes much to the loyalty of postmen and women getting the mail out to every address in the country, even in during these difficult weather conditions. Can the Minister give us a little more certainty about the timing of this scheme and how those loyal postmen and women will benefit?

Michael Fallon (Sevenoaks, Conservative)

It is our intention to conduct a sale during the forthcoming financial year, 2013-14, and I confirm that at the time of that sale we intend to make a share scheme available to the 130,000 employees of Royal Mail who, as my hon. Friend says, have worked so tirelessly to turn it into a successful and profitable business and should share in that success.

Russell Brown (Dumfries and Galloway, Labour)

What assurances can the Minister give to small businesses and many individuals across the UK who rely on a well performing, six-day-a-week service to their homes and businesses? Will that remain so once Royal Mail is privatised?

Michael Fallon (Sevenoaks, Conservative)

Yes, it will, because Parliament put in place, in the Postal Services Act 2011, the statutory requirement for a universal postal service that is secured by Ofcom, an independent regulator, and that will exist irrespective of the ownership of Royal Mail.

We very much support genuine employee ownership, especially for hard-working Royal Mail employees. However, we vehemently oppose this Government undermining employee ownership by attaching it to the Beecroft agenda of giving up rights at work. The Chancellor announced this policy by proclaiming:

“Workers of the world, unite!”

Well, they have: they have united against this policy, along with the Employee Ownership Association and the vast majority of responses to the consultation. The Minister is not listening to this large body of opinion, so may I press him again, following the question from my right hon. Friend Mr Hanson, to heed the advice of Conservative Lords Lawson, King, Forsyth and Gummer who voted yesterday, with a large majority of other Lords, to dump these divisive shares for rights policies?

Michael Fallon (Sevenoaks, Conservative)

I note that the hon. Gentleman wants to divert the House from the question about Royal Mail and the more interesting question of whether those on the Opposition Front Bench will support this opening up of Royal Mail to private capital and the scheme to ensure that those who work for the company will share in its success.