Royal Mail Delivery Office Closures

Clive Lewis Excerpts

Wednesday 11th October 2017 Westminster Hall

[Clive Lewis (Norwich South) (Lab)]

It is an honour to speak in this debate under your chairmanship, Mr Gapes, and I thank my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) for securing it. It is a fantastic debate.

I also thank my hon. Friend the Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) for a fantastic speech. Many on the Opposition Benches hope that his five-year career break will be a lot longer than five years. We need to hear his voice in this place, and it is a privilege to speak after him.

One of the key reasons why Opposition Members are opposed to the privatisation of national public assets such as Royal Mail is that we see no benefit for the country as a whole, just a benefit for a small handful of individuals who profit at the expense of the many. The number of Labour MPs who have turned out for this debate is instructive, while the sterling turnout on the Government Benches is a tumbleweed turnout—no one to speak up for the Government side, except of course for the Minister.

The British post has been one of the best in the world for almost two centuries: fast, reliable and much cheaper than that of nearly other country in the world. Also, it is—or was—a technological leader. It is widely envied throughout the world, not least because it has been a key historical driver in the UK economy.

When we opposed privatisation, we did so because we predicted that the only things it would lead to would be a worse service to the public and, as usual, the resulting extra profits being scooped off by the usual small cosy elites. I have to say that it looks like that is exactly what has happened. I will not go into the details, which we heard from Members earlier, because time is pressing.

I will say, however, that as the service is being squeezed, assets are literally being flogged off, with £200 million in property sales since privatisation. Fat dividend payouts to shareholders are estimated at £1 billion over the four years post-privatisation, and there have been the huge pay rises for senior managers for whom the word “privatisation” is like the word “Christmas” for a five-year-old. In 2016-17, Royal Mail’s chief executive, Moya Greene—I think my hon. Friend the Member for Coatbridge, Chryston and Bellshill told her, poignantly, to get her arse to the negotiating table and negotiate with the CWU—saw her total pay package increase by 23% to £1.9 million. I could not even begin to think about how to spend that.

The Conservative party likes to present itself as the party of business, the real world and responsibility, but in reality it is the complete opposite. It has taken a key component of a modern manufacturing economy, which is already a world leader in its field in nearly all measures, and has undermined it and hollowed it out to skim off short-term profits and shower them like confetti on a small, self-seeking minority. It has achieved much of that by chipping away at the quality of service and flogging off assets for one-time profit hits. The other obvious target for the vulture capitalists and asset strippers is the rights of the workforce, with attacks on pensions, pay and agreements.

On pensions, there is a new scheme that, according to Royal Mail’s own pension trustees, will produce pensions so small that Royal Mail pensioners will live in poverty. Who will make up the living standards of those workers? Other taxpayers, naturally. Once again, the management of a privatised asset have transferred costs on to the shoulders of us ordinary taxpayers and shovelled the profits into their own pockets. We can be pretty confident that plenty of that profit will find its way out of the country and to the spivvy tax havens of the rich, where it will be of almost no benefit to this country’s economy.

On pay, I have already mentioned Moya Greene’s generous offer to herself of a 23% pay increase this year. What has she offered her workers? A below-inflation pay offer. Let us call that what it is: a pay cut.

On industrial agreements, there has been an attempt to ram through huge alterations to agreements reached with workers through the CWU. Let us be clear: Royal Mail is reneging on its deals. It has already been mentioned that, unsurprisingly, when balloted on strike action, on a 73% turnout, 89% of Royal Mail workers voted for strike action. That is as clear a mandate as any decision ever gets, and in a healthy work culture it is a clear signal to management to start re-thinking their policies. But that is not where we are. Instead, management have merely threatened legal action against their employees—a bully-boy tactic that they are unlikely to use because they fear the cost of their likely defeat in court.

What my constituents want, and what the country needs, is not macho posturing by Royal Mail management. Nor do we need to see them handing one another more fat-cat bonuses and closing down more services. The actions of companies like Royal Mail affect all of us and none of us can ignore them, even if we wish to. That means that management need to consider their social licence to operate—the consent that the people, through their elected representatives, give them to operate. I believe that they have lost it. Without that, they do not have a right to be there and to do what they are doing to Royal Mail.