Fire Sale of Royal Mail ‘Put Vital Postal Services at Risk’ say Labour

Royal Mail privatisation ‘already in the bag’

Labour’s Shadow Business Secretary, Chuka Umunna MP, commenting on Royal Mail’s announcement of changes to post box collection times , said: “The changes announced by Royal Mail today – which mean that many post boxes will see their last collection times moving earlier in the day – will be disappointing news for consumers and businesses across Britain who rely on the essential postal services it provides.”

“In their unnecessary fire sale of Royal Mail, the Tory-led government put vital postal services at risk and, as many feared when the privatisation took place, we are now seeing consumers losing out. This adds insult to injury after taxpayers were left short changed by hundreds of millions of pounds as the ‘priority’ City investors selected by the Tory-led government made a killing.”

“Labour is clear that the Universal Service Obligation and the historic link between Royal Mail and the Post Office network must be safeguarded and strengthened to protect postal services for the future.”

Unions slam ‘Vince Cable’ for ‘duping the public’

Billy Hayes
Billy Hayes CWU “The rise in profits is further proof that there was no need to privatise this successful company.”

Trades Unionists have attacked Lib Dem Business Secretary Vince Cable for “spectacularly duping” the public about the sell-off of Royal Mail.

Royal Mail’s profits nearly doubled to £283 million in the six months before it was sold off – showing that it was clearly a public-sector success and fuelling accusations that the national treasure was sold off on the cheap. Shares were initially flogged off for £3.30 but were trading at £5.68 yesterday.

The postal workers’ union CWU said the figures showed clearly that it should have been kept in public hands. “These results are based on performance when Royal Mail was still in public ownership,” said general secretary Billy Hayes.”The rise in profits is further proof that there was no need to privatise this successful company.A profitable, successful and well-loved institution was flogged on the cheap when these latest figures show it was healthy and in good hands. The government’s arguments continue to crumble. These profits should be public money, not paid out to hedge funds and city institutions in dividends.”

Meanwhile the Unite union, which represents 7,000 Royal Mail managers, said the coalition had “hoodwinked” the public by claiming that Royal Mail was not a viable business.

Chris Inchley
“Profitability is more import to the newly privatised Royal Mail than serving local people who live in rural communities.” Cllr Chris Inchley Wells PPC

“It is clear that the chickens are coming home to roost very quickly for Vince Cable and he has spectacularly failed the UK taxpayer,” Unite officer Brian Scott said.”Ministers alleged, wrongly as it has turned out, that the Royal Mail couldn’t operate successfully in the public sector which was why it needed to be sold off at what was a bargain-basement price.Today’s profit figures highlight how the taxpayer has been hoodwinked by that spurious argument and sold down the river.The loser is the UK taxpayer as the Royal Mail was a viable business before the sell off – and now money that should be flowing into the Treasury for schools and hospitals is going into the pockets of private investors.Services and staff were slimmed down so that profits could be fattened up for the sell-off.”

Somerset Labour candidates add concerns


 Cllr Chris Inchley (Wells PPC) said “As for the postal service it is village post boxes that will be affected the most and they are the ones that service the need of rural communities within our constituencies. The changes will affect those post boxes that collect 50 or less items a day which makes them not profitable. Despite the Royal Mail promising not to close any post boxes we know

“Monitoring the impact of this change ” Cllr Mick Lerry

that know profitability is more import to the newly privatised Royal Mail than serving local people who live in rural communities. This is a natural consequence of privatising Royal Mail, even the under selling of Royal Mail, and would lead to worse service for areas such as ours. I fear the next steps will lead to post box closures and a poorer post delivery service.”

Cllr Mick Lerry (Bridgwater & West Somerset PPC) said “ We will be monitoring the impact of this change of service locally and if any consumers of businesses are affected by the earlier collections, then please get in contact”.


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