Billy Hayes Speech Compass/CWU Rally, Newcastle

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Please find following a speech made at today’s Compass/CWU Rally in Newcastle

I wish to start by thanking Compass for organising tonight’s meeting. This meeting is one of a number that Compass has set up throughout the country.

I wish to start by thanking Compass for organising tonight’s meeting. This meeting is one of a number that Compass has set up throughout the country.

By promoting a public debate on an issue of such importance, Compass are demonstrating the vitality of great democratic traditions.

Certainly a debate is desperately needed. Despite being committed to oppose privatisation in its Election Manifesto 2005; despite opposing privatisation in the second Warwick Agreement; and despite the decision of the Labour Party Conference 2008 – the Government is pressing ahead for privatisation.

When the announcement was made on December 16th, there had been no internal consultation with the Labour Movement.

All the evidence querying the basis of the Government’s decision has been ignored or rejected again without consultation.

So the CWU produced a critical response which was ignored. Compass produced a pamphlet on the economics of the Hooper Report which was dismissed out of hand by the Government.

The House of Commons, cross party, Business and Enterprise Committee published a report on the Postal Services Bill. The report says that the case for privatisation is not made. –

To date the Government has provided no response to that report.

And now, Compass has published “Modernisation by Consent” which offers an alternative future for Royal Mail in the public sector. Government spokespeople dismiss this saying it’s a “political fix.”

From where most of us are standing, it looks like the Government could do with a political fix or two. –

Of course, the Compass Report is much more important than that. In my view it has immediately transformed the public debate on Royal Mail. It is every bit as important as the Hooper Report.

These past few months we have had endless dreary commentary about the dynamic potential of private investment, and private management in Royal Mail. This only makes sense if you ignore reality – those privatised postal companies are in a mess.

First quarter results were recently published by a number of European postal operators:

• TNT registered a year on year drop of 58% in operating profits.
• Posten (Sweden) suffered a 50% drop in operating earnings.
• Post Danmark took a 52% drop in profits.
• Deutsche Post has yet to publish its first quarter results, but in the last quarter of 2008 reported a loss of 3.16 billion Euros.

Meanwhile, Royal Mail has increased its profits in both quarters, and is expected to roughly double its profits for the whole year.

Who should be tutoring who?

The Compass Report offers the opportunity for more fruitful dialogue.

The CWU agrees with the idea of modernisation by consent. Postal workers have an enormous stake in the service. Our members livelihoods and homes are dependent upon the health of Royal Mail.

We favour Royal Mail having the best machinery, information technology, and range of services. –

We know that the industry is changing. –

We know this better than experts who are being parachuted in to break up the industry.

As a Union we have continually campaigned for additional investment from the industry; for new services and products for the customers; and for changing the way Royal Mail works for customers.

Now this doesn’t match up to the media caricatures of the CWU. But it does add up to what we want.

Of course, as a Union we are not going to apologise for raising the living standards of postal workers. That is what Trade Unions do – and this will never make us popular with the powers that be.

But we don’t have to justify being effective. That is our vocation as Trade Unionists.

Compass’ proposal to restructure Royal Mail as some form of “not-for-profit” company in the public sector is a good one. There can be a debate about which form of company is best. But the broad idea is most helpful.

For example, the comparison with the BBC is very good. –

Like the postal market, the broadcasting market is fully liberalised. –

Yet a state-owned company can prosper in such an environment. We are certain that that is also true for Royal Mail.

Once the Government removes the pension deficit – and all the major parties agree it must – then Royal Mail has an additional £280 million capital per year for the next 15 years. The pamphlet is spot on in recognising this.

Such additional capital for an industry, already in profit, means that Royal Mail could become one of the best equipped postal companies in the world. Effectively Royal Mail would become self financing.

The basic case put forward by Compass is very strong. Much stronger than the arguments for privatisation.

But, this is not just a matter of who has the best argument. These are questions of how many divisions of supporters we have behind the argument.

For our part, the CWU has organised a national tour “Keep the Public Posted” where we are having a week of activity in every region of the country.

We started this week in Scotland, and there is a demonstration in Gordon Brown’s constituency today. There will be a week of events in the North East from May 26th.

Alongside this initiative, our branches have been organising many lobbies, activities and events in their areas.

The National Union is organising regular lobbies and briefings inside Parliament. We are supporting the great work of Lord Tony Clarke, who is leading the opposition inside the House of Lords.

But, we need more. Above all we need the people here tonight, and in all the Compass meetings, to push the case forward in every form available to you.

The Government faces stark choices.

When this Bill comes back to the Commons, they can amend it along the lines suggested by Compass, or they can push ahead with privatisation.

If it goes to privatisation, then the Government is marching towards a hole.

They will only be able to carry the measure with Tory votes. That would be terribly demoralising for the whole of the Labour Movement.

Or worse, and perhaps more likely, the Tories will find a pathetic excuse to vote down the Bill at the last moment, leaving the Government looking even more foolish than they did on the vote concerning the residential rights of the Ghurkas.

We say that it is not too late for the Government to reconsider, and we will make every effort to ensure it does. With your help we can be successful.

Thanks for listening.

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Posted by Billy Hayes | @ Sat, 9 May 2009 13:00:48 +0100

[norbert]

Cameron is threatening to defeat Mandy's RM Privatization bill IF it is watered down with concessions to appease back benchers . Article in The Independent today on it . :mfo has been on the telly today with some vicious smears against the Union .

C'mon Billy Disaffiliate ! & wake up !

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( McRuin over a barrel )

[Big Daz]

I think Conference will be rather stormier than usual this year especially as selll off is now a reality and not speculation that it might become government policy.