Westminster Comment - Postal service threat

[TrueBlueTerrier]

http://www.kincardineshireobserver.co.u ... -1-3464028" onclick="window.open(this.href);return false;

Given the large rural nature of much of the North-east I have long been a supporter of the Universal Postal Service obligation that is placed upon Royal Mail. It is an obligation to collect and deliver mail at a uniform price no matter where it is from or to.

This Government has made it a legal duty for the regulator, Ofcom, to protect that delivery service. Currently the Universal Service, in difficult to reach areas, is maintained by the profits made by Royal Mail’s deliveries in the easier built up towns and cities.

Those profits have been at risk ever since the last Government introduced competition into the postal market. When they introduced competition it was under a new regulator known as Postcom.

I remember at an early meeting with Postcom warning them not to go too fast in the introduction of competition. The liberalisation in those early days went far faster and deeper than it did in most of the rest of Europe.

That meant foreign competitors could cherry-pick the easier business while Royal Mail could not compete in other markets. Postcom did open up the collection and sorting of mail to early competition and required Royal Mail to do the final delivery at a price that turned out to be loss making. At the same time, as a state-owned company, Royal Mail had difficulty getting the necessary investment to make its operations competitive. The new regulator has sorted out the access price problem and Royal Mail now has access to private investment, but the competition are now setting up rival delivery operations in the easier to deliver urban areas. This cherry-picking threatens the viability of the Universal Postal Service.

The regulator has promised a review in 2015. But I have tabled a motion in Parliament, with support from MPs in other parties, calling for Ofcom to bring forward its review to ensure competition is not threatening the Universal Service. They have the power to raise a levy on rival companies to subsidise the Universal Service or to consider other regulations that will ensure a level playing field.

Last Wednesday I hosted the Subsea UK reception in Parliament. In Westhill we have a world centre of excellence in subsea engineering. That expertise earns this country considerable export income and supports a supply chain throughout the UK. It may have the highest profile in Westhill but its reach extends to much of the country. It was a great opportunity to celebrate a success story rooted in the North-east.

[GT750rider]

The MP who wrote this is Sir Robert Smith, Liberal Democrat. As we all know it was Vince Cable, Liberal Democrat, who was the driving force along with his Tory mates to wreck the postal service. Was Sir Robert for or against Cable's desire ?

[subbie]

There are a lot of people both inside the industry and outside who are desperately trying to sweep under the carpet their involvement in the treachery that was the fire sale of Royal Mail and the isolation of the Post Office.

Re-Nationalisation of the Royal Mail and the repatriation of the Post Office by the next Government is the only way that these two cherished organisations will survive and face up to competition.

Subbie

[holly123]

they don't give a t..s about us they think we have had to an easy ride for so long , but no of them could do what we boys n girls do each and every day , chin up all

[ShropshireLad]

The MP who wrote this is Sir Robert Smith, Liberal Democrat. As we all know it was Vince Cable, Liberal Democrat, who was the driving force along with his Tory mates to wreck the postal service. Was Sir Robert for or against Cable's desire ?

Actually, it was that great working class socialist, Mandelson, who first tried to privatise RM under Blair's reign.

[TrueBlueTerrier]

The MP who wrote this is Sir Robert Smith, Liberal Democrat. As we all know it was Vince Cable, Liberal Democrat, who was the driving force along with his Tory mates to wreck the postal service. Was Sir Robert for or against Cable's desire ?

Actually, it was that great working class socialist, Mandelson, who first tried to privatise RM under Blair's reign.

Historically inaccurate - Hesseltine under Major was one of the first serious attempts he had to call it off in November 1994 after concern from Conservative Back Benchers. He had also tried back in the 80s but before it even got looked at seriously Maggie Thatcher scuppered his plans.

Then it was Patricia Hewitt and Stephen Byers in 2001 who tried to sell us to TPG for £1 billion. Then it was Mandelson who abandoned his plan in 2009.

[subbie]

Mandelson attempted a part privatisation mainly to introduce business competence into Royal Mail.

As has already been pointed out he backed off.

Subbie