Billys SPEECH TO THE SEMINAR REBIRTH OF THE PUBLIC SECTOR

[TrueBlueTerrier]

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In the few minutes available to me, I want to explain the Union’s campaign against the privatisation of Royal Mail.

The Government proposes to sell off up to 50% of Royal Mail. At the moment the second reading of the Bill in Parliament has not been timetabled. The rationale behind the privatisation is that only the private sector can supply the expertise, and the capital to transform the industry.

Now, Royal Mail has suffered from under-investment by successive Governments.

At the start of the 1990s, successive Governments have hoped to privatise the industry. As a consequence, money was taken out rather than reinvested. The Labour Government has supported greater investment, particularly since 2004, but the industry has not received the most up to date machinery.

Government supported full liberalisation of the sector, well in advance of other EU countries. This has not been successful.

Royal Mail have lost high earnings bulk mailings. But Royal Mail continues to deliver 99.8% of previously reserved mail.

So competition has been unbalanced with Royal Mail’s network actually subsidising the competitors.

Now, the proposal is to hand over Royal Mail to one of its competitors. The partner would be able to appoint the Chief Executive Officer, and in practice run the day to day operations of Royal Mail.

The Government is however losing the argument here. The annual accounts for 2008/09 saw Royal Mail double its profits. Meanwhile the main rivals fared badly – TNT saw its profits drop by 58% - Deutsche Post lost nearly 2 billion Euros on the year.

The Union has campaigned for Royal Mail to be modernised in the public sector.

We supported the pamphlet that Compass has published “Modernisation by Consent.” This shows that there are other models in the public sector, such as the BBC, Network Rail, and Welsh Water.

None of these models would be a perfect fit for Royal Mail. But the idea is that Royal Mail profits should be reinvested in new services, new machinery and rewarding the workforce.

Government structure could be remodelled taking into account the communities represented, mail users, and the workforce.

However, before this we have a serious battle to win.

There is a major split in both the PLP and the Cabinet on this policy. To date 149 Labour MPs have signed EDM 428 which proposes to modernise Royal Mail in the public sector.

The Government’s proposals have been rejected by the cross party House of Commons Business and Enterprise Committee. All public opinion polls show huge majorities against the proposal.

The Union has organised events up and down the country. We have supported a number of Compass rallies on this question.

At the moment we are running a series of weeks of action in every region of the country. The response has been very positive.

We are on a fight which we can win – and with your support we will.

Posted by Billy Hayes | @ Sat, 13 Jun 2009 13:25:29 +0100

[stokes11eg]

Another Sermon on the mount rallying type of speech we've come to expect from billy. not.

[norbert]

When-Im-65-When-Im-65-gal-014.jpg

Another Sermon on the mount rallying type of speech we've come to expect from billy. not.

I wonder who writes these speeches

[dvbuk55]

It's his political adviser.

[norbert]

It's his political adviser.

Billy's new focus group