Royal Mail and the Universal Service Obligation — [Rushanara Ali in the Chair]

Part of Backbench Business – in Westminster Hall at 2:12 pm on 12 January 2023.

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Photo of Clive Efford Clive Efford Labour, Eltham 2:12, 12 January 2023

Ms Ali, after 26 years of being in the House, it is a great pleasure to speak in a debate with you in the Chair for the first time. I congratulate my hon. Friend Kate Osborne on securing this important debate.

I will start by doing something I did not expect to do, which is to agree with David Mundell, who gave an excellent speech, including his complimentary comments about the people who work in the postal service. What I find sad about the Government is that whenever they talk about public sector workers, they always talk about them as if they are the enemy, but when I talk to public sector workers, I hear that they are concerned about their conditions making it difficult for them to be able to provide the service they are providing. That is true of the postal workers, when I talk to them about their industrial action and defending the universal service obligation.

The situation we are in right now was predicted at the time of privatisation—incidentally, Royal Mail has been in private hands for 10 years, and here we are with this standard of service. What a disgrace! It was predicted that sooner or later, its management would want to cherry-pick the service. The more profitable bits would be hived off, and the universal service obligation would come under threat.

Post covid, many more people are working from home. I recently led a debate in this Chamber regarding my local train service, because the Government are saying, “We are cutting the local train service because more people are working from home.” Well, if more people are working from home, it follows that more people will be reliant on their post; they will want those important documents that cannot be emailed, which other Members have described, to come through the post. If the Government’s argument for cutting trains applies to the postal service as well, it will be more important to defend the universal service obligation, not less.

I have raised the issue of casualisation in the past. We had casual labour employed to deliver the local post a number of years ago, and we found undelivered bags of mail in the Quaggy river, which runs through my constituency. More importantly, the employers could not identify the workers they had employed to deliver those bags of mail. They had no identification—no way of following up who they were. Those people had rifled through the post, and what they did not have time to open they just dumped in the river—no come back, no follow-up. Is that the sort of casualisation that we want to see—people being hired to deliver the post for Royal Mail because they have a van? It is a service that people rely on and we should not be dumbing it down.

I have one or two questions for the Minister. Royal Mail announced record profits last May of £758 million. It paid out £567 million to shareholders and buy-back schemes. Within six months of International Distributions Services becoming Royal Mail’s parent company, it announced it was losing £1 million a day and was going to cut 10,000 workers. What questions did the Government ask of IDS when it announced it was losing £1 million a day so soon after it had made record profits of £758 million? Given that the losses were within just six months, surely that should have raised some alarm bells within the Government.

What attitude do the Government take to the dumbing down of the workforce, the introduction of the laws of the gig economy—rather than relying on the dedicated workforce that we have—and Royal Mail’s undermining of the workforce? IDS, the parent company, says it is making losses, but apparently boasts to potential investors—this was reported in The Telegraph—that it has a £1.7 million investment war chest to put into the company. How can it be saying one thing to one audience and another to the other?

I know the Minister will sympathise with my final point. Apparently, Mr Daniel Křetínský has links to the gas operator Gazprom. What assurances do we have that we are not supporting Putin’s illegal invasion of Ukraine by the back door? Is there a national security risk from his involvement with Royal Mail?