Minister hits back at Cumbrian union leader's £2 post charge

[TrueBlueTerrier]

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A Government minister has rubbished a Cumbrian union leader’s claims that a privatised Royal Mail would charge people £2 to send a letter to Cumbria.

Related: Union warns of £2 Cumbria rural postage charge

Carlisle postal worker Paul Griffiths, of the Communication Workers’ Union, said last week that a plan to sell off the UK’s postal network would see prices rocket.

But Minister for Postal Affairs Edward Davey has contacted the News & Star to refute the allegations, claiming the union is “scaremongering”.

He said: “Since the Government published its plans to safeguard Royal Mail and the Post Office last week I have been following the reaction up and down the country. I read your story with interest and would like to put the record straight.

“I can guarantee your readers that we will never allow a situation where the price or level of service required in Cumbria is different to any other part of the country.

“Nor will our reformed regulatory regime allow such unaffordable stamp prices.

“We are actually putting in place extra safeguards so that this can’t be done via the backdoor in the future.

“The number one reason we are taking action is to ensure that the universal postal service is protected and that Royal Mail can keep delivering and collecting your letters six days a week at an affordable, one-price-goes-anywhere cost. This is written into our legislation.

“I’m sure there will continue to be a degree of scaremongering as our plans are debated.

“But I look forward to that debate, as I’m convinced our approach is the right one.”

Business Secretary Vince Cable last week unveiled a plan to sell off 90 per cent of Royal Mail to the private sector, with 10 per cent going in shares to workers.

Overseas firms would be allowed to bid and there will be no upper limit on how big a stake a single company can buy.

Mr Griffiths had said he was “disgusted” by the plans.

He claimed workers had agreed to help modernise the service and that they should be given a chance to do it.

[POSTMAN]

As mentioned in the original thread,twas a silly remark.

[BELIAL]

Oh I don't know. Despite vigorous assurance from govt ministers about affordable prices,our local Rail operator has just announced a 40% increase in fares

[fishtank]

As mentioned in the original thread,twas a silly remark.

It was...and so in turn was this....

I can guarantee your readers that we will never allow a situation where the price or level of service required in Cumbria is different to any other part of the country.

Private company...the market drives the prices...and the level of service....end of USO...end of story.

[TrueBlueTerrier]

Royal Mail tried to get Zonal pricing and Post Com stopped them. However, when we are a Private company and Post Coms job is done will there be such a staunch defence of the Universal Price - I dont think so

[Wessex]

Teebs is right.Zonal pricing was stopped by Postconn.However this was to protect the interests of competitor companies rather than the public as one could easily assume.The new Minister will of course know that,well lets hope so.What regulation there would be after privatisation I am not sure about, but the clearest barometer will be competitors such as UK mail If they start squealing foul .The fact that Moya Greene is only looking for a once- off deal to get RM through its crisis is interesting but I suppose a privatised RM would have access to the usual sources for extra funding.One thing we can be sure of the major actors must know pretty much what the game-plan is

[Wessex]

Teebs is right.Zonal pricing was stopped by Postconn.However this was to protect the interests of competitor companies rather than the public as one could easily assume.The new Minister will of course know that,well lets hope so.What regulation there would be after privatisation I am not sure about, but the clearest barometer will be competitors such as UK mail If they start squealing foul .The fact that Moya Greene is only looking for a once- off deal to get RM through its crisis is interesting but I suppose a privatised RM would have access to the usual sources for extra funding.One thing we can be sure of the major actors must know pretty much what the game-plan is

I must recheck what Moya Greene is actually asking for whether it is a permanent fairer access price or a temporary one-off hike.

[BELIAL]

Temporary one year, but by then you are well into privatisation so all the problems caused by DSA can be conveniently ignored and public statements regarding profitability and efficiency can be made with an air of genuine innocence

[Wessex]

I very much think you are right Belial.If we allow privatisation and suddenly ,magically,regulation allows Royal Mail to start making loads of money we will never hear the end of private is always best.Mind you the public wont think much of further declines in service.If privatisation occurs I would like to think I will be out of it by then.