UK Royal Mail Group loses commons screening contract
The Royal Mail has been stripped of the contract for screening post on its way in to the Houses of Parliament and could lose its job delivering internal mail, it emerged today.
Commons Leader Peter Hain said the board of management awarded the contract to an American company because Royal Mail would not have provided the level of service detailed during the tender procedure.
The internal mail contract has been put out to tender because MPs could not justify spending taxpayers’ money on a price increase demanded by the Royal Mail, he said.
A Commons motion tabled by Labour MP Kate Hoey (Vauxhall) calling on the Serjeant at Arms to “reconsider immediately” has attracted the signatures of 41 MPs.
She told MPs at questions on Commons business that Royal Mail staff in the Palace have done “a great job…for a very long time”.
Mr Hain said: “As a fan of the Royal Mail I’m sad they didn’t get the contract for mail screening but I have looked into the matter and I’m content that all the correct procedures were followed.
“As a result of the tendering exercise, which was a legal requirement, it was decided unanimously by the tendering panel that the contract should go to a company which could provide the required level of service.
“The board of management took the view that the facility offered by the Royal Mail in this instance would not have provided the correct levels of screening that had been identified in the tender document.”
However, the Royal Mail could still bid for the internal delivery contract which is currently out to tender, he said.
“The board of management had to put it out to tender because it otherwise would have been open to legal challenge.
“Given the fact that Parliament needed to protect public funds, the House could not justify the significant price increases that I’m afraid were suggested by the Royal Mail for maintaining the same level of service.”
Geraldine Smith (Lab Morecambe and Lunesdale) said there was “widespread alarm about proposals to privatise postal services in this House”.
Mr Hain said it was a matter for the board of management who have to comply with tendering procedures.
“We have had a long association with the Royal Mail but at the same time the tenders have to be competitively bidded for and the contracts have to be agreed in course with proper procedures,” he said.
