It is a pleasure to follow my comrade, the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell). I have to say that I agreed with many of his remarks, which will no doubt concern him greatly. I also congratulate my good friend, the hon. Member for Jarrow (Kate Osborne), on securing this important debate.
It would be remiss of me not to mention my family connections to Royal Mail: my late grandfather worked for it for many decades, and two uncles also worked for it. They cared passionately about the Royal Mail service when they worked for it, as do the workers in the Govan and Hillington delivery offices—when I have met them on the picket line during the present dispute, it is clear just how much they care. As I have said to the Scottish secretary of the Communication Workers Union, its members in Govan and Hillington are a credit to themselves and their trade union, because they care about the public. They know the communities and they look after
vulnerable members of those communities, looking in on them and making sure they are okay. They care about the service and the key principles around that service.
Royal Mail staff have no interest in turning the service into a gig economy-style parcel courier, but Royal Mail is introducing insecure contracts and lower pay into the service to try to turn Royal Mail into just that sort of gig economy parcel courier service, which should be of deep concern, for many of the reasons that the right hon. Member mentioned. My concern is that Royal Mail’s direction of travel will leave communities, businesses, customers and workers worse off.
In discussing the universal service obligation, we need to ask questions about the financial mismanagement of Royal Mail, which I believe puts the universal obligation at risk. Questions need to be asked about how a company can make profits of £758 million, as reported in March last year, which would easily qualify for any excess profits tax, and, six months later, that profit has been turned into a loss of £57 million. The company is almost Carillionesque in its management approach. As someone who was part of the Carillion inquiry, I can see similar themes in Royal Mail’s management approach in terms of profits, sending money to its shareholders, running down the service and then making losses. The comparison is not unfair.
The end of Saturday deliveries would have a harmful effect on other industries, such as the publishing sector, as has been mentioned. It would result in millions of pounds in losses from people cancelling magazine subscriptions, for example, and reduce advertising revenues. It would also lead to thousands of decent Royal Mail jobs being lost around these islands, and it runs completely counter to the often stated levelling-up agenda that we hear about so often.
In closing, I hope the Minister will talk about the proposed takeover by Vesa Equity, which has been allowed to increase its stake in Royal Mail; we have had no explanation about that as yet. I have a very real concern that it wants to break up the service and break Royal Mail apart. If that is the case, the company will hear from many hon. Members, and not just myself, as to why that should be opposed and obstructed.
2.7 pm