Mandelson urged to halt Post Office closures

Post by **TrueBlueTerrier** » 19 Oct 2008, 04:13

http://www.guardian.co.uk/uk/2008/oct/1 ... royal-mail

Labour MPs are to call on Peter Mandelson this week to block all further Post Office closures and allay fears over an end to Saturday letter deliveries, amid growing concern that the continuing loss of local services could cost the party the next election.

In his first major policy test since returning to the cabinet as Business Secretary, the newly ennobled Mandelson will be told to 'come clean' over government plans for Royal Mail and Post Office Ltd when he appears before the business and enterprise select committee on Tuesday.

Labour members of the committee hope to take advantage of Mandelson's return from Brussels to engineer a U-turn and halt a process that has already seen 2,500 post offices close as ministers try to stem losses, which are running at £4m a week.

They will demand that ministers reject plans for further 'privatisation' of the network and instead use government money to save it.

Lindsay Hoyle, a Labour member of the committee, believed 'everyone on the committee' wanted to question Mandelson on the future of post offices and the Royal Mail.

He said it would be 'disastrous' for the party and country if Mandelson and James Purnell, the Work and Pensions Secretary, failed to prop up a network that was crucial to local communities and businesses when they take critical decisions on its future in the next few weeks. 'Intervention is the name of the game now, after the banking crisis,' he added. 'We don't want post offices to wither on the vine. We want to see them revived with government intervention.'

By the end of this month Mandelson is due to receive an independent report commissioned by ministers on the future of the Royal Mail from Richard Hooper, former deputy chairman of Ofcom. Hooper warned recently that maintaining the status quo is not an option. He has hinted at the need for further liberalisation and radical change to the network if it is to continue fulfilling its legal obligation to deliver mail six days a week at uniform prices.

In a speech earlier this month, Hooper admitted that the 'universal postal service is under threat' and made clear that without change 'the postal services sector in the UK remains untenable.' His remarks raised new fears about an end to Saturday mail deliveries.

Hoyle added: 'We will also be looking for reassurances about the future of Saturday deliveries.' A Royal Mail spokesman insisted the organisation was completely committed to continuing a six-day-a-week service.

In another landmark decision expected soon, Purnell has to decide whether to award the successor to the Post Office Card Account - used by millions of pensioners and other benefit recipients - to the Royal Mail or its private-sector rival PayPoint.

Ministers accept that if PayPoint wins the tendering process to provide the account, thousands more post offices will close.

Big Daz · Post by **Big Daz** » 19 Oct 2008, 06:11

Saturday deliveries raises its head again.

Research shows that the public and buissness are not that bothered although that research is proably about two years old now so should be updated.

Certainly in my office the mbrs would love very saturday off.

Post by **Thorby Bislam** » 19 Oct 2008, 20:00

the newly ennobled Mandelson

"Pah !", *spits on the ground*

Post by **TrueBlueTerrier** » 20 Oct 2008, 14:27

Thorby Bislam wrote:
the newly ennobled Mandelson
"Pah !", *spits on the ground*

Fully agree. He is a conservative through and through, probably even more than Mad Maggie.

Mind you'll I'll be celebrating when it says "the newly embalmed Mandelson"

F0zziebear · Post by **F0zziebear** » 20 Oct 2008, 16:01

I remember from the analysis I saw a few years ago that the cost of Saturday deliveries is large in comparison to the volume actually delivered, but then you would expect this. The question is whether the consumer makes purchasing decisions aftering opening the post on a Saturday? But with deliveries in some cases not being made until later in the day there is not enough time for the consumer to get the mail and make a decision. Therefore post on a Thursday and Friday is important in terms of influencing consumer decision making.

This issue is similar to that of second delivery as the costs are seen to outweigh the benefits. With the advent of a five-day week from this, then I can see further reductions in staffing levels.

Hmmmmm

Vulcan · Post by **Vulcan** » 20 Oct 2008, 16:14

Lord Mandelson is quoted in the Daily Telegraph today as saying he wants to privatise Royal Mail partially. Don't forget he is the new Trade Secretary. You thought John Hutton was bad, now you have Lord Mandelson of Sleaze & Spin, what chance does Royal Mail & CWU have against that!!!! Maybe you will want to keep your phantom shares (you might need them to supplement your pension).

lifesentence · Post by **lifesentence** » 20 Oct 2008, 19:29

We could deliver letters Mon - Fri then Sat could be used for catching up on the parcels that are left all week. If they are not careful more heads will follow those already gone.

Spedley · Post by **Spedley** » 20 Oct 2008, 20:35

It seems to me that if there is money in it then TNT and DHL could make a fortune by setting up small 'Post Offices' in shops. The only reason I use Royal Mail to send things is that I don't know any other way and I'm sure a lot of people feel the same.

If there really is money in it then RM are opening up a huge gap for the competition.