UK government claims Scottish independence would disrupt mail
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The UK government warned today that an independent Scotland would face “significant technical and funding challenges” in setting up a whole new national postal service.
And, the Department for Business, Innovation and Skills said that with 90% of Scottish businesses reliant on the mail, they would end up suffering as the UK’s integrated postal network is broken up.
In a white paper issued this morning, the government in Westminster said Scotland would lose out on the economies of scale and the investment resources on offer for its postal infrastructure if it leaves the UK following the referendum vote scheduled for September 2014.
The report noted that Scotland is generally more rural than the rest of the UK, and could find it more difficult to support universal postal services and loss-making post offices.
And, with a new national border, and uncertainty as to when Scotland would join the European Union, added challenges would be presented to those mailing between Scotland and the rest of the UK. Movement of goods across the border could be subject to new controls, while the pricing of letters and parcels sent between Scotland and the UK would move to European rates.
The Department’s white paper, part of a series of briefings as the Westminster government campaigns against the break-up of the UK, looked at various implications that Scottish independence might have for businesses in Scotland.
Impact on business
“an independent Scottish state would have to consider how to fund the significant non-commercial elements of their Post Office network”
Business secretary Vince Cable said the central message was that the current union works for businesses on both sides of the border.
“Scotland is famous for its world class products and enterprising spirit – and the UK’s truly free, integrated and growing market helps Scottish firms exploit these to the full,” he said.
“As the economy starts to heal, now is the time to focus on renewed opportunities to do business. The last thing firms need is a new set of rules and regulations, new costs on exports, a smaller labour market and less reliable support for innovation and knowledge transfer.”
Parliamentary under Secretary for Scotland David Mundell added that small businesses in particular would be hit by independence.
He said: “Today’s paper focuses on real businesses like those in my constituency and across Scotland. Let’s just look at the benefits that, a small family-run business in Lockerbie – so close to the border between Scotland and England – gets from being part of the United Kingdom: a UK-wide six-day-a-week postal service with uniform prices regardless of location; no charges for firms who move goods across the border on a daily basis; and no need to worry about complying with two set of business regulations.”
Supporting rural areas
Royal Mail currently delivers about 4.5m items a day to 2.5m addresses in Scotland, with a work force of 12,500 people.
The Scotland Analysis report states that within the EU, the UK currently goes above and beyond the minimum requirements for universal postal services, with Royal Mail offering six-day-a-week delivery. The suggestion is that as a member of the EU, an independent Scotland would likely be forced to move to five-day-a-week delivery service in order to pay for universal services.
The report highlights the current government subsidies used to support the Post Office Ltd network, stating that about 7,000 of the UK’s 11,800 post offices are “non-commercial”, with a “significant proportion” of these in Scotland.
By the numbers
Scotland’s postal network
4.5m items delivered by Royal Mail each day
2.5m addresses in Scotland
12,500 people employed by Royal Mail in Scotland
1,411 post offices
954 rural post offices
457 urban post offices
178 main delivery offices
172 small delivery offices
Of Scotland’s 1,411 post offices, more than two thirds are rural, a significantly higher proportion than the rest of the UK.
“In the event of a vote for independence, an independent Scottish state would have to consider how to fund the significant non-commercial elements of their Post Office network if it wished to maintain the current level of service. It would be unlikely to achieve the economies of scale of the current UK-wide network, which helps support the provision of services to remote areas,” the report states.
SNP
The Scottish National Party, which is leading the campaign for independence in Scotland, said postal services in Scotland were more likely to suffer under the UK government’s privatisation plans than under independence.
The SNP also suggested that internationally, support by some UK ministers, including Prime Minister David Cameron, for a full referendum on the UK’s EU membership, was offering more uncertainty for the postal sector than Scottish independence.
Mike Weir MP said of the Department for Business report: “They have tried to whip up fears over the future of the postal network in an independent Scotland, but evidence given just last week by key figures in the industry made clear that a Yes vote provides clear opportunities to develop postal services.
“Meanwhile it is the uncertainty that Westminster is creating over its future relationship with the EU that is really concerning the postal sector,” added Weir.
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UK government claims Scottish independence would disrupt mai
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TrueBlueTerrier
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UK government claims Scottish independence would disrupt mai
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El-Bandito
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Re: UK government claims Scottish independence would disrupt
Jeez we are going to have another year of this utter pish.scaremongering and bullshite. That fat egomaniac so called president of Scotland in waiting, independence vote.will be trounced.
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hans solo
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Re: UK government claims Scottish independence would disrupt
oh no it wont all the 16-18 yr old dont hold any tradition with labour party in scotland
they will vote for independence THEY HAVE NOTHING TO LOSE
they will vote for independence THEY HAVE NOTHING TO LOSE
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El-Bandito
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Re: UK government claims Scottish independence would disrupt
Stay away from the "Sun" my friend! SNP are going to be burnt by the under 18s on this vote.hans solo wrote:oh no it wont all the 16-18 yr old dont hold any tradition with labour party in scotland
they will vote for independence THEY HAVE NOTHING TO LOSE
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fishtank
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Re: UK government claims Scottish independence would disrupt
I think it's difficult to call,especially with the younger vote.El-Bandito wrote:Stay away from the "Sun" my friend! SNP are going to be burnt by the under 18s on this vote.hans solo wrote:oh no it wont all the 16-18 yr old dont hold any tradition with labour party in scotland
they will vote for independence THEY HAVE NOTHING TO LOSE
There are way too many "floating" voters out there still waiting to decide,or be covinced.
What is definite is that both sides of the debate have been throwing unverifiable nonsense about like confetti and I don't think it will help anyone.
good times, bad times you know I've had my share
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LDV 350
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Re: UK government claims Scottish independence would disrupt
My main concern is that the 16-18 year old vote with their hearts not their heads, the reality is Scotland and the rest of the UK need each other more than the nats would care to admit
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NWpostie
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Re: UK government claims Scottish independence would disrupt
The postal service in Scotland will not be under the control of the Scottish government as it will be private courier company if privatisation goes ahead, if it remains in public owner ship then the nearest precedence would be the partition of Ireland with the split of the postal service.
Six of Nine loves Seven of Nine, together in Electric Dreams.
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TrueBlueTerrier
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Re: UK government claims Scottish independence would disrupt
If Scotland does secede then wouldn't Nationalisation be an option for the Scottish part of Royal Mail.
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fishtank
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Re: UK government claims Scottish independence would disrupt
I think only the Universal Service could be "nationalised" since this is the only part of Royal Mail's business that would be in any way under the control of the Government.TrueBlueTerrier wrote:If Scotland does secede then wouldn't Nationalisation be an option for the Scottish part of Royal Mail.
If the Scottish Government decided to revoke Royal Mail's license to provide the Universal Service in Scotland they could in theory move that provision back into the public service although why,how and what possible claim they would have to any of Royal Mail's assets is all debatable.
good times, bad times you know I've had my share