Plaid MP: reversal of Government plans for Royal Mail is a welcome climb down

Plaid Cymru’s Westminster leader, Elfyn Llwyd MP, has responded to Lord Mandelson’s admission that the UK Government will not proceed with legislation to part-privatise the Royal Mail in the near future.

Plaid Cymru MPs have consistently campaigned against privatisation of the Royal Mail as this would threaten the universal service obligation (USO) which ensures that customers in rural areas are not disadvantaged.

Mr Llwyd commented:

“I am very pleased that this plan has stalled. I hope that the Government will now reflect on it and finally dismiss this very bad idea.

“However it has been dressed up, this would have effectively marked the beginning of the end of the Post Office as a public service.

“It was hugely unpopular and unworkable as well. No doubt if it reappears in some other guise, there will be huge opposition again.

“The plan has been shelved because the reality is it would have had a huge amount of difficulty getting through. Failing to get the bill would be an embarrassment for the Government although this is a welcome climb down.

“What it means for Wales is protecting the all important universal service obligation.

This means that people are given the same level of service whether they live ten miles up a mountain or in the middle of a city. Privatisation would have meant the end of that obligation and this would have been exceptionally bad in Wales .”

(BERR) Postal Services Bill clears Lords

The Government's Postal Services Bill successfully cleared its third reading in the House of Lords today and will now pass to the House of Commons.

Business Secretary Lord Mandelson said:

"This is an important landmark in the Bill's passage through Parliament. The legislation has emerged stronger following the numerous debates in the Lords and the constructive and helpful input from Peers.

"The Government remains convinced that the huge challenges facing Royal Mail must be addressed by a comprehensive package of reform. Letter volumes are expected to fall by as much as 10% every year as people turn to email and other forms of communication, with each 1% fall costing the company around £70m. The company is also technically insolvent due to its volatile multi-billion pound pension deficit.

"Royal Mail is facing decline and it would be a dereliction of duty if we did not take action to secure the company's future."

The Postal Services Bill has been strengthened by a number of amendments which the Government made in response to the constructive debate in the Lords. These include:

* Clarity that the legislation allows an employee share scheme to be created, provided that Royal Mail remains publicly owned. The Government believes it is important that employees have a serious stake in Royal Mail's success. It wants to discuss this issue with any partner before deciding how best to incentivise performance and deliver value for money.

* A new requirement for the Post Office to produce an annual report on the breadth and accessibility of the Post Office network. This will ensure that transparent information about how accessible the network is, in particular to small businesses, rural communities, the elderly, people with disabilities and other vulnerable groups, is published every year.

* The Secretary of State must report to Parliament on any sale of shares in Royal Mail. The report would be made after any agreement had been signed and set out the objectives and criteria for any sale and if they have been achieved, and the principal terms.

* A new requirement for Ofcom to report on the cost of fulfilling the universal service obligation (collecting and delivering mail six days per week at a uniform price). Ofcom will also have powers to ensure that the price other postal operators are charged by Royal Mail to access its network, including delivery over the final mile, properly reflect those costs.

The Bill now passes to the House of Commons, where it will be debated by MPs in early June.

Deva Kumarasiri, the "Great Brit" postmaster will be standing for UKIP in the East Midlands in the June euro elections.

Mr. Kumarasiri is best known as the Sri Lankan born immigrant who insisted that customers at his Post Office in Sneinton, Nottingham , speak English: or he would refuse to serve them. He took this stand because he believes that anyone who moves to a new country must both learn its language and embrace its culture.

"I had no hesitation in joining UKIP and agreeing to stand in the euro elections." Mr. Kumarasiri said. " I want to get elected and speak up for Britain .

"My priorities will be to save the pound and to push for British jobs for British workers. I´ll campaign for newcomers to Britain to learn English and seek to persuade them that integration is absolutely vital to the country´s future."

Nigel Farage, UKIP leader, said "He shows passion, pride and patriotism. He´s a perfect example of why patriotic people who care about immigration controls should not be tempted by extremists but should support a non-racist party like UKIP."

(BERR) Mandelson - Post Office has potential to become "Front Office for Government"

Business Secretary Lord Mandelson today welcomed the news that the Post Office has signed a five-year contract to support DVLA in issuing millions of motorists with photographic driving licences using new, world class technology.

Lord Mandelson said:

"I am passionate about the Post Office and strongly believe that if the right steps are taken there is a positive future for the network. But nostalgia is not a currency that will enable the Post Office to thrive.

"It must innovate, look to future and identify new opportunities and new ways of doing business. That's why I welcome the contract the Post Office has signed with DVLA.

"Today's announcement will enable a large number of Post Offices to act as a one-stop-shop for drivers to renew photographs on their licences.

"The Post Office's trusted brand, unrivalled network, experienced staff and the new technology being purchased for the contract put the company in an excellent position to bid for other work. It can turn itself into a real front office for Government."

The decision to award this contract to the Post Office further demonstrates this Government's continuing commitment to the Post Office network.

The Government is providing up to £1.7bn of funding to the Post Office, including £150m a year to help support a network of around 11,500 branches to 2011. It has made it clear that it will continue to support the non-commercial network beyond this date.

In November the Government announced that it would renew the contract for the Post Office card account. The account is used by four million people including two million pensioners. It brings millions of people into Post Offices and benefits the retail side of branches up and down the country.

The new Government sponsored Savings Gateway is designed to help people on low incomes save. It will be available through Post Offices who are well placed to deliver this service.

The Government's Postal Services Bill is currently at committee stage in the House of Lords. It reinforces the commitment that the Post Office will remain in public ownership in its entirety. The Bill will also enshrine in law measures to protect the six-day-a-week, one-price-goes-anywhere 'universal postal service'.

Burt: Post Bank would help to save the Post Office

Commenting on the launch of a new coalition which is calling for a new ‘Post Bank’ to be set up and run as part of the post office network, Liberal Democrat Small Business Spokesperson, Lorely Burt said:

"With the credit crunch causing a loss of confidence in both banks and bankers, the time has never been better to create a Post Bank."

"Post Bank could offer safe, reliable banking services for business and individual customers alike through the large post office network."

"For the Post Office, Post Bank would expand its services, helping to put it back on a secure and profitable long term footing."