Privatisation of Britain’s Royal Mail moved one step closer last night as the Postal ServicesBill was approved by MPs in the House of Commons.
The bill was passed with a majority of 81 votes and will now go the upper house, the House ofLords, where it is expected to be approved without significant opposition.
In the Commons, a move to force Royal Mail to sign a 10-year agreement guaranteeing business tothe Post Office network was defeated by the government. But an amendment added by the government toensure that the Queen’s head would remain displayed on British stamps in future was approved.
Under the Postal Services Bill, the capital of Royal Mail, the postal operator, will be openedup to private ownership but at least 10% of its shares will be set aside for employees. Royal Mailwill be obliged to maintain postal collection and delivery six days a week at affordable prices.The government will take on its heavy pension deficit and regulation will be ‘lightened’ withPostcomm merged into communications regulator Ofcom.
The other main measure will be the separation of the Post Office network from Royal Mail and itsconversion into a mutually-owned organisation. The government plans to invest £1.34 billion inmodernising the network of 11,500 branches over the next four years.
In response to the Commons vote, Business Secretary Vince Cable said: “I am delighted that ourproposals have passed through the Commons. Upon taking office the Government realised it had tomove swiftly to tackle the challenges facing Royal Mail and the Post Office to ensure the future ofthe important services they both provide. We’re absolutely determined to secure the future of thesetwo proud institutions.”
Minister for Postal Affairs Edward Davey added: “Today is good news for everyone who wants tosee a successful Royal Mail and Post Office network. We’re convinced that our approach is the rightone and look forward to the debates which will soon take place in the Lords.”
But postal union CWU repeated its criticism of the bill, and said MPs had missed missed theopportunity to safeguard post offices and postal services by not backing the amendment to obligeRoyal Mail to use the Post Office network in the long term. Billy Hayes, CWU general secretary,said: “We’re very disappointed that MPs didn’t take the opportunity to safeguard post offices intoday’s parliamentary session.”
CWU deputy general secretary Dave Ward added: “There are wide-reaching implications from thislegislation. In its current form it threatens the ongoing modernisation of Royal Mail and willdestabilise the progress made to date. It also threatens the jobs, terms and conditions of ourmembers and we’ll do whatever it takes to defend against the damaging effects ofprivatisation.”
