Post regulator under MPs fire
The Post Office regulator today came under fire from Labour backbenchers over its comments on increased competition within the postal service.
One MP called the announcements a “disgrace” and another called for Postcomm chairman Graham Corbett to be sacked.
In its report setting out a timetable for increasing competition in the market, Postcomm said traditional justification for maintaining Consignia’s monopoly was no longer valid.
Alternatives to post were increasingly being offered, heightening pressure on Consignia to be innovative and flexible.
And Postcomm chairman Graham Corbett argued that Consignia needed the stimulus of increased competition.
Speaking during exchanges on coming parliamentary business, veteran Labour left-winger Dennis Skinner (Bolsover) asked about procedures for sacking regulators.
“I think this fellow Corbett or whatever his name is has gone too far already. He’s going to become an embarrassment to this Government just like (Chris) Woodhead before.”
“Let’s get him out before he causes more damage,” added Mr Skinner.
Commons Leader Robin Cook acknowledged that the more cherry-picking there was of large commercial contracts, the more challenging it would become for the Post Office to maintain its universal service.
“Obviously that is a matter that must weigh with us when we come to consider any outcome of the consultation process,” he said.
Labour’s George Mudie (Leeds E) referred to reports that 8,000 Post Offices faced closure because of changes to the benefit system.
“Today’s announcement by the regulator that, within eight weeks, one third of the Post Office’s business will be privatised is a disgrace.”
He said Trade and Industry Secretary Patricia Hewitt was quoted as saying the issue was a matter for the regulator.
“Where half of the Post Offices in this country face closure, accelerating next year, and the regulator announces something that will push the redundancies in the Post Office beyond the 30,000 already announced, that is very much a matter for the Secretary of State.”
Mr Cook said it was a matter of “very clear and close interest” to Ms Hewitt.
“The regulator is entitled to publish what the regulator wishes to publish but the regulator could not secure the proposals in the consultation paper without primary legislation and that is very much a matter for this House and a matter for the Government.”
Mr Cook said ministers had received “no such proposals” regarding figures for Post Office closures.
Labour’s Tony Lloyd (Manchester Central) accused Postcomm of talking about privatising parts of the postal service.
“This is bound to cause massive concern to the public who want a universal and nationwide service.
Mr Cook said Postcomm’s comments were proposals for consultation which the Government would be “following with the closest of interest”.
“The one thing that is imperative and above all will be important in any judgment we reach is that we must reserve the universal service of the Post Office.”
