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Under Secretary of State for Employment relations, consumer and postal affairs, Jo Swinson MP, yesterday showed a "level of complacency" towards the threat of the universal postal service obligation as MPs from all political parties spoke of the need for protection from competition.
Katy Clark, MP for North Ayrshire and Arran, who tabled the motion for the back-bench debate, levelled the criticism at the Minister after passionate contributions in defence of the universal postal service from Labour, Liberal Democrat, Conservative, Democratic Unionist Party and Scottish National Party MPs.
"Billy Hayes, CWU general secretary wrote:"It's crazy for the Government to brush this problem under the carpet when politicians from all parties are saying that action must be taken now to save the universal postal service.
Politicians from city and rural communities were all in agreement that Ofcom and the Government must act urgently and bring forward a review of the commercial viability of Royal Mail against this threat.
However, when answering the debate the Minister refused to accept there was an urgent threat. She said: "It is clear that we need to keep our eye on the rate of growth, but we are not yet talking about a level or a volume that would cause concern about the impact on the profitability of Royal Mail."
She added: "Even Royal Mail accepts that the concern is more to do with the potential for that to happen rather than the situation as it is at the moment."
She said she had spoken to Ofcom, who are happy to bring the 2015 review forward if they see any market changes.
The Minister also agreed to arrange a meeting between Ofcom and MPs so it can define the tipping point which would lead to Ofcom taking action.
Labour London MPs Diane Abbott and Gareth Thomas both spoke about the poor quality of service competitors such as TNT Post UK offer their constituents in Hackney and Harrow respectively, citing examples of mis-delivery and dumped mail.
0Fellow London MP John McDonnell also contributed to the debate: "I listen to the real experts-those whom everyone has cited today and praised to high heaven. They are the people who deliver the mail. They know what is happening on the ground, how they are being undercut by TNT and others and what their prospects are-in the near future, not just the long term. They are saying through their trade union and in direct dialogue that, if we do not act soon, we will lose the universal service."
Welsh Labour Member of Parliament for Ynys Mon Albert Owen credited postal workers who, he said, provide an excellent service to the community throughout the year. He warned: "Privatisation had set a dangerous precedent".
A number of MPs argued for a compensation fund, paid to Royal Mai to support the provision of the universal service. It could "be used to collect contributions from those that benefit from providing en-to-end service without the requirements of meeting the universal service", said Katy Clark.
Brian Binley, MP for Northampton South paid tribute to CWU general secretary Billy Hayes and postal workers for their handling of the privatisation of Royal Mail. He said: "I believe in the basic decency of Royal Mail workers. They are a much-valued part of our national infrastructure. We should give no thought to being anti-union in any way at all, bearing in mind that they have acted in a proper manner and have in many respects taken some pretty heavy knocks from their own specific political point of view."
Concluding the debate Katy Clark said: "There is a huge amount of concern about the speed at which TNT is expanding its service in the UK and about the impact that that could have on the universal service. Yes, we have had 10 years of competition, but the lesson that we have learned is that the market does not respond well to competition."
0CWU general secretary Billy Hayes was pleased with the quality of the debate: "It's obvious that protecting of the universal postal service is very important and it's great to have their support.
"It's crazy for the Government to brush this problem under the carpet when politicians from all parties are saying that action must be taken now to save the universal postal service. It's no good looking back in 17 months' time, when the review is due to take place and saying it's too late."
The motion before the House of Commons read: "That this House believes that the Universal Service Obligation as set out in the Postal Services Act 2011 is under threat from unfair competition from organisations which are rapidly expanding end-to-end delivery services in low-cost, high-density urban areas while leaving high-cost, low-density rural areas to be covered by Royal Mail, the universal service provider; and calls on the Government to instruct Ofcom to bring forward proposals to protect the Universal Service Obligation and the commercial viability of Royal Mail against this threat."