---

Postal Services Bill [HL]

My Lords, I declare an interest as a member of Unite. As has already been illustrated, parts of this Bill are extremely difficult for many of us on this side of the Chamber. The Bill is about businesses that are very dear to our hearts—the Royal Mail Group and Post Office Limited. Understandably, feelings are running high about the Bill, especially between those who feel that it is wrong to bring any private investment into postal services, such as my noble friends Lord Hoyle and Lady Turner, and those who, like me, feel that there is no option on this occasion. It is made more difficult because we are discussing the future of dedicated men and women who, in many parts of the country, are more than just workers. They are friends and helpers of those to whom they deliver the mail, especially in rural areas. They know the families and their friends; they keep their eyes on the elderly, the disabled and the new people who have moved into the local community who may need assistance. In many ways, they are in part social workers, as well as postmen and postwomen. Like others who have spoken, I want to keep our postal service at the highest level possible and, at the same time, to maintain the jobs of postmen and postwomen and provide a proper pension for the many former employees of Royal Mail. I do not agree with some of the criticisms of our current postal service. Perhaps I can put in a word of caution: anyone who has lived abroad realises what an amazing service we have in this country. Letters are delivered wherever we live throughout the UK six days a week. We have heard about Europe. I want to give noble Lords a flavour of my experiences in France. I have lived in France for part of each year for the past 20 years. No letter has ever been delivered to my house there; instead, we walk to collect our mail from the central point on the village green where the post van delivers five, not six, days a week. We never meet the van driver and there is a different van driver each day. That is the French system. Do we want that here? I think not. I read this Bill very carefully and I have no hesitation in supporting many parts of it. I welcome the transfer of the functions of the regulator of the postal service sector from Postcomm to Ofcom, whose first duty will be to protect the universal postal service, something with which I totally agree. I also support the transfer of the horrendous pension deficit away from Royal Mail’s responsibility to that of the Government. I cannot see how the pension fund can be sustained otherwise. If it is not, there will be no security for the pensions of all those hard-working men and women who have worked for Royal Mail over the years. Royal Mail cannot pass on the pension deficit to its customers without risking losing them. It cannot afford to continue with the current deficit, which is rising year on year. We have heard about the 2005 Labour manifesto commitment, but that was four years ago and life, particularly our economy, has changed dramatically since that time, far more than any of us could have predicted. We must not forget that the manifesto also committed us to carrying out a thorough review of postal services. In December of last year, the Hooper report was presented to the Government. It outlined starkly what has happened over recent years and its overall conclusion was that without change the universal postal system would be under threat. The amount of mail that we post has decreased dramatically while the use of the internet, e-mailing and text messaging has increased equally dramatically. These trends will inevitably continue. Like most of us in this Chamber, I am one of those who are guilty of depriving Royal Mail of its business. In 2005, I always used what a noble friend described as "snail mail". Now I e-mail whenever I can to answer phone messages, invitations, letters and, of course, the many e-mails that I receive each day. It was because of these dramatic changes in the way in which we use the communication systems that are available, coupled with the pensions deficit, that the most controversial proposal in the Hooper report was made. Hooper introduced the concept of a strategic partner that would have a minority stake in Royal Mail. The Government have decided to adopt this proposal, in my opinion to give Royal Mail a chance to play on a level playing field. It is quite natural for the CWU to be opposed to the philosophy of any form of privatisation. Many trade unions are opposed because we recognise that the private sector does not hold all the answers. However, we also recognise that Royal Mail needs capital and that the Government have provided safeguards in the Bill. The proposed partnership must be with a company that has a, ""demonstrable expertise in transforming a major network business"." This is key to any partnership agreement, which should provide the flexible capital that Royal Mail needs so badly. As we have heard, the Government are committed to keeping Royal Mail in public ownership and this will be enshrined in law. Additionally, the universal service—letters collected and delivered anywhere in the UK, six days a week, at a single affordable price—will be written into legislation. These safeguards satisfy me that the Bill should be read a second time. Perhaps the proposals made by Hooper, and accepted by the Government in this Bill, are not perfect, but they provide us with what may be the last chance to get it right. It will be far too late if Royal Mail is allowed to slide into bankruptcy and I am afraid that other proposals voiced recently do not appear to offer a viable alternative. As always, the Bill will be improved as it passes through the House and I am sure that all noble Lords who are taking part in this debate will be involved in that process.