Strike threat to post monopoly
PATRICIA HEWITT, the Trade Secretary, signalled yesterday that she would allow the Royal Mail’s monopoly to be lifted in the event of a postal strike due early next month.
At Question Time Ms Hewitt urged the management of Consignia, the Royal Mail’s parent company, and the Communication Workers Union to reach a mediated settlement over their pay dispute.
Nigel Waterson, a Conservative Trade and Industry spokesman, asked if she would back any move by the regulator to safeguard services by lifting the company’s monopoly if a strike went ahead. Ms Hewitt replied: “If any strike were to take place the primary duty of the regulator is to ensure that the universal service is maintained. That applies to the circumstances to which he referred.”
Earlier Mark Hoban (C, Fareham) said the threat of industrial action by postal workers was reckless and irresponsible and challenged the Trade Secretary to condemn the union’s actions. Ms Hewitt responded by saying that under the last Conservative Government an average of 145,667 days were lost each year by the Post Office to strike action, a figure that had since been slashed.
Several Labour MPs pressed for a delay in proposals by Postcomm, the industry regulator, to open Consignia’s market to competition, starting with business mail in April.
Michael Connarty (Lab, Falkirk E), author of a Commons motion signed by 123 MPs urging ministers to reject the plan, appealed for more time to consult on the “unnecessary and damaging” proposals. John Grogan (Lab, Selby) made a similar plea.
Vincent Cable, the Liberal Democrat Trade and Industry spokesman, said commercial operators would cherry-pick the most profitable licences and ought to pay a levy towards the costs of meeting Consignia’s universal service obligation.
David Cameron (C, Witney) protested that postal deliveries in rural areas were arriving increasingly late, a situation worsened by closures of sub-post offices, while Richard Page (C, Hertfordshire SW) urged ministers to set Consignia free and privatise it.
