Postal Privatisation looms

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The Communication Workers Union warns that the UK's postal service faces an uncertain future once the Postal Services Bill passes through parliament tomorrow (Thursday).

MPs will vote on amendments to the Bill tomorrow in the final parliamentary stage before Royal Assent, expected later this month. The legislation will enable the full or part privatisation of Royal Mail and will sever the link between mail business and the post office network. The legislation will also mean the government taking on the historic pension deficit and will abolish Postcomm and give regulatory control of postal services to Ofcom.

Billy Hayes, CWU general secretary, said: "The UK's postal services face an uncertain future because of the government's Bill. Without strong guarantees the post office network could be stripped of a third of its income when Royal Mail is privatised leading to thousands of closures.

"The new law means the Universal Service, six days a week one-price-goes-anywhere, could be downgraded in just four years and we fear that consumers will see massive price hikes. Privatisation has lead to a three-day a week rural service in the Netherlands and postage costs twice as high as ours in Germany.

"Royal Mail is already under huge pressure from the government to slim down and appear attractive to a private buyer. There's no evidence that a buyer exists and this uncertainty is very stressful for postal workers.

"Regardless of who buys this business, the CWU will still be representing the interests of postal workers. We will be fighting for jobs and services for the long-term as we are not governed by the short term profit motives of 'spivs and gamblers', in the Cabinet or elsewhere."

A poll of subpostmasters on behalf of the CWU published last month showed 92 per cent thought their post office was either very unlikely or unlikely to survive without mails business provided by Royal Mail. Less than 1 per cent said they would be very likely to survive.