Billys Speech: to Parliamentary Lobby on Unfair Competition

[TrueBlueTerrier]

Speech: to Parliamentary Lobby on Unfair Competition in the Postal Service

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Today represents an important step in the campaign to defend our postal service.

The new Early Day Motion represents a wider public concern – MPs from a range of Parties are demanding that protection be given to Royal Mail’s universal service obligation.

It is clear that the industry’s new regulator, OFCOM, is not serious about protecting the universal service.


The regulator is well aware that Royal Mail remains in a shaky economic position. This is due, in large part, to the previous regulator, POSTCOMM, forcing Royal Mail to subsidise the competition in access contracts on bulk mail.

Yet OFCOM has allowed the introduction of delivery competition to Royal Mail with no concern as to how this affects the company’s ability to fund its universal service.

In their current consultation document on “End-to-end competition in the postal sector”, OFCOM writes:


“ … whether competitors are more or less efficient than Royal Mail, or whether entry is based on arbitrage or cherry picking … is not relevant to our primary duty to secure the provision of the universal service. What is of importance is effect that the competition has on the provision of the universal service”.

This sounds all very lofty. –

But it will be impossible to fund the universal service if OFCOM turns a blind eye to “cherry picking”

By its very nature such a form of competition in deliveries takes away Royal Mail’s ability to profit in the urban areas. Royal Mail would then be left with the loss-making deliveries. Yet for OFCOM that’s not “relevant”.

Nor is this the only attack that the Regulator is making. OFCOM has also launched a consultation on reviewing user needs.

In itself, we’re happy to see such consultation take place. –

We think that new products and services should be introduced, and that postal services can be adapted more to consumers.

But there is an agenda that wants to reduce the terms of the universal service obligation at the first opportunity.

OFCOM’s review document is definitely tilting towards lowering universal service provision.

Indeed, at a meeting with CWU reps last week, one senior OFCOM manager told the delegation that the way the industry was developing meant that the loss of next-day delivery services – i.e. First Class mail – was “almost inescapable”.

Well, we disagree. The public values Royal Mail. OFCOM’s own research indicates that nine out of 10 residential and business users find the service “acceptable”.

So what we have to do is pull together the widest possible lobby to ensure that there are no more experiments with our postal service. –

The union will work with the 90 percent who want to keep universal service healthy.

From today, we need all of you present to approach your MP and persuade them to support this campaign. We want as many MPs as possible to sign the EDM.

But that’s not the end of it. We will be taking this campaign to all the devolved governments – the Northern Ireland Assembly, Scottish Parliament and the Welsh Assembly.

We also want to organise events and lobbies in all the regions and councils in the UK.

Every avenue needs to be explored, if we are to put sufficient pressure upon the regulator.

Behind the stance of the regulator of the regulator is a presumption of, and support for, the privatisation of Royal Mail.

Once again, we disagree. We know that privatisation would lead to a poorer service and more expensive products for domestic and business customers.

We know that there remains a big majority of public opinion against privatisation.

This opposition is being reinforced by the scandal of private energy companies price fixing, and the continuing chaos of the rail franchise.

So in the coming months we are going to be seeing a variety of initiatives in defence of our postal service.

The case will be made by the people in this room, and people like you throughout the country.

There’s a great deal of work in front of us – but together, we will win.

Thanks for listening.

[POSTMAN]

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Billy Hayes and Dave Ward, accompanied by a host of Regional Officers, Branches and Local Reps, attended parliament to Lobby thier MPs and to launch Early Day Motion 818. EDM 818 has been launched to draw attention to the dangers of increasing competition in Royal Mail and to protect the Universal Service and members terms and conditions.