Postal Services: Rural Areas Debate
Full Debate: Read Full DebateJim Shannon
Main Page: Jim Shannon (Democratic Unionist Party - Strangford)Department Debates - View all Jim Shannon's debates with the Department for Business and Trade
(1 day, 10 hours ago)
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It is a pleasure to serve under your chairship, Mr Stringer. I thank the hon. Member for South Shropshire (Stuart Anderson) for allowing us the opportunity to speak in this debate. I say well done to him for setting the scene incredibly well, although it does not give us any joy to highlight Royal Mail’s failings in communities, particularly rural communities.
I wish to preface my remarks by highlighting that my own Royal Mail workers are great. I spent some time with them at Christmas, and I know most of them—I probably grew up with most of them. I know where the problems lie, and it is not in the staff, but in the surroundings. The building is not fit for purpose; there are parking spaces for 30 vans, but there are 50 vans that need to park; and there is not enough space for sorting, so it is little wonder that the post in some of my areas is taking up to a month to get through. There is a priority for parcels, which Royal Mail does not try to hide. I understand that it puts them first and the delivery of letters is downgraded as a result.
On staffing levels, which the hon. Member for Yeovil (Adam Dance) spoke about in his intervention, when I spoke to the Royal Mail guys, they told me that one of the problems is maintaining and holding on to staff. If Royal Mail gives staff members the minimum wage and no more, it is not going to keep them, because they will always be looking for a different job that will give them better payment. That has to be addressed as well, and I know that the Minister does his best whenever it comes to addressing these things.
In my constituency of Strangford, all the villages have problems. To give one example, in Portavogie, one gentleman had no mail at his house for a month, and then got 29 letters the next day, which included three about hospital appointments—he missed them all. His health has unfortunately been poor, and that had a detrimental effect on his health. It is not just a matter of not getting a monthly bank statement; in some cases, health is at stake. I believe that it is necessary that Royal Mail makes an investment in sorting offices to be able to get facilities in place and once again facilitate a routine post service that is fit for purpose.
To give another example, the heater in my office broke over Christmas, and it amazed me to see that one of my staff had ordered a heater and it was delivered the next day. I did not pay one penny for that delivery. I do pay £7.99 a month for unlimited free delivery, but it astounds me that I pay more than £1 for one letter, and it takes weeks to make it, but other things can be delivered in a short time. It cannot just be the facilities in Newtownards that are not up to scratch, because I have listened to every other Member present saying the same thing. We need root-and-branch changes, and we need the Minister to stand firmly with us as we press for those changes.
Officially, the Royal Mail website says that it is reducing second-class delivery to alternate days—Monday, Wednesday and Friday one week, and Tuesday, Thursday and Saturday the next week—and that first-class letters will continue to be delivered six days a week. The service we are seeing is nowhere near that, and Royal Mail must be held accountable. It is not easy to answer all these questions, but I look forward to what the Minister has to say in his response.
Blair McDougall
I will come to that point on other parcel delivery providers shortly.
Before the takeover of Royal Mail, we secured commitments from its new owners, EP Group. In addition to retaining a golden share in Royal Mail, we secured a commitment to prevent further value from being taken out of it until the quality of service improves.
I thank the Minister for responding to all the questions that we posed. One of mine was about the minimum wage. If a business wants to retain staff, it has to pay them a decent wage. The problem in Newtownards is that some of the staff who have been there for many years are not getting the minimum wage, so if something better comes up, they are away. We cannot blame them; if someone has to pay bills, they have to do that. Instead of Royal Mail paying a fine, which could be used to pay wages, would it not be better and more sensible for it to give workers a decent wage, retain them and improve the service from the bottom up? Is the Minister in any way able to encourage it to do that?
Blair McDougall
The hon. Member makes a really important point about staff retention. Obviously, management and the workforce are working on implementing not only reforms but the pay deal. Hopefully, that will play an important role in helping to tackle what he has just spoken about.
In addition to my discussions with Royal Mail, I have had detailed discussions with Ofcom, which has an essential role in improving standards. As the hon. Member for Strangford has just pointed out, Ofcom has told Royal Mail that it must publish a credible improvement plan that delivers significant and continuous improvement, and made it clear that, without such a plan, it is likely that fines will continue to be imposed.
The hon. Member for South Shropshire mentioned the context for this debate, which is the change in consumer behaviour and communication. The average household now receives only four letters per week, down from 14, yet the number of addresses in the country has risen by 4 million. To protect the USO for the long term, Ofcom has introduced reforms that are projected to deliver up to £450 million in annual savings, helping to get Royal Mail on to a more financially sustainable basis. We now need Royal Mail to work with its workforce and unions to deliver the service that we all expect.
Several hon. Members raised concerns about now slightly notorious parcel providers other than Royal Mail. Ministers and Ofcom have made it clear that the way they are operating is not good enough and that they are on notice.