The union believe that the Post Office is a vital part of the local community. But the government’s plans to privatize the post office will cut or increase the cost of services which small businesses, communities and vulnerable groups rely on.
In particular the union believe three things will happen if the Postal Services Bill is passed in its current form:
Mail services cut
Royal Mail delivers and collects to 28m UK addresses for six days a week for a single stamp price (uniform tariff). This is called the universal postal service; it is expensive to provide, particularly in rural areas. The Government has been keen to stress this service will be protected under a privatised Royal Mail.
However, the reality is that in order to make Royal Mail attractive to investors, it will need to cut the cost of providing those services. That is why the bill compels the proposed postal services regulator, Ofcom, to review the universal postal service within 18 months. Such a review, with the need to make Royal Mail attractive to investors as a backdrop, is hardly likely to determine that the current universal service minimum requirements should become more onerous! At least nine clauses in the Postal Services Bill allow the regulator to amend or vary the application of the minimum requirements that make up the universal service. Such sell-offs are very rare internationally, but in Holland the minimum requirements were reduced following privatisation.
Increase in mail prices
The Postal Services Bill allows for Ofcom to make an assessment of the financial burden of the universal service on Royal Mail and to make recommendations for how to alleviate this burden. While the Bill requires that prices be affordable — this leaves wide scope for price increases. Already the Regulator has approved a huge 5p rise in stamp prices next year. Still higher prices would be deeply unpopular and run counter to public perception of what it is to protect the universal service.
Local Post Offices under threat
There is no guarantee in the Postal Services Bill that Royal Mail will continue to use the Post Office as the primary retail outlet for some or all of its products. A privatised Royal Mail could choose to use other outlets such as supermarkets or high street chains. This would deprive the post office network of a third of its income, and would put thousands of post offices at risk, especially in rural areas where post offices are particularly struggling. Fewer post offices in these areas mean that vulnerable groups in those communities will have to travel further to get access to vital services.
You can get involved in the campaign against privatisation- including a model e-mail for your local MP, by visiting the CWU's Keep the Post Public website here.
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