The government should halt privatisation of the Royal Mail

The financial results from Royal Mail last week are very welcome news and only serve to show that it is the wrong time for privatisation.  It is now clear, Ministers are motivated by the desire to make a quick buck, not by what is best for the taxpayer and the Royal Mail in the long term in an attempt to spare the blushes of the Chancellor and Prime Minister and their failing economic plan that will borrow £245bn more than anticipated.  Even the late Baroness Thatcher – the most zealous of privatisation proponents – saw it as a step too far. Would she have concurred with the traditional quip from the Beast of Bolsover during the pomp and ceremony of the Queen’s Speech earlier this month?  In all likelihood, yes.

This follows the intervention of right-wing think tank, The Bow Group, whose Chair Benjamin Harris-Quinney expressed about the Government’s plans.  In his letter to Tory MPs,  Mr Harris-Quinney said:

“It (privatisation) is likely to be deeply unpopular with the British public, prices will rise at a time we can least afford it, an amenity that many communities consider crucial will be removed and a sell off will also impact on the significant heritage of Royal Mail.” 

I agree with Mr Harris-Quinney. What safeguards does the Government have in place for stamp prices, to ensure easy access to Royal Mail locations following the sale and that the Queen’s head will still take pride of place? We do not know.

And it’s not the first time this voice had been raised by those in the Conservative Party.  Brian Binley, Conservative MP for Northampton South and distinguished member of the Business Innovation and Skills Committee which monitors the work of Royal Mail said:

“Before the Government rushes into selling off Royal Mail, it is essential to ensure that the services currently enjoyed by the public, can be guaranteed.  This should include a very careful look at how future price rises will adversely affect businesses as well as people.”

In Government and Opposition, Labour has opposed wholesale privatisation of Royal Mail.  We believe maintaining our 372 year-old institution in public ownership gives the taxpayer an ongoing interest in the maintenance of universal postal services. This is not to say that Royal Mail doesn’t need to adapt. It does, and has, and should continue to do so. Indeed, preliminary results for 2012/13 have shown profits  have increased under the deft hand of Moya Greene, the Chief Executive in cooperation with management, staff and trade unions.  It is due to the hard work of management, staff and trade unions, productivity has improved and the company’s much needed modernisation has continued which is to be congratulated.  However, instead of supporting this progression, Ministers have got the “fire sale” signs out.  Let’s give the staff the chance to show they can really turn this company around.

Ultimately, privatisation should be halted not because it might cost rural Tory MPs their seats but because it is wrong and those who rely on the postal service will pay the price for this ideologically-driven policy.  And if the Minister, Michael Fallon MP, will not listen to Labour, the Bow Group or the Save the Royal Mail campaign, perhaps he will listen to himself – only a few short years ago when in opposition he signed a letter to one of his constituents that he did not agree with privatising this cherished service.  This hugely undermines the government’s case for privatising the cherished service.  The hardworking staff of Royal Mail have legitimate grounds to feel highly aggrieved given that only last week the Minister threatened that the Royal Mail could fall into foreign hands if trade unions continue to fight its flotation.  The fact that ministers have already resorted to scare tactics shows how weak their case is.

Ian Murray is Shadow Minister for Postal Affairs and Labour MP for Edinburgh South