No, I do not. The point of the IBA is to allow for an established foundation so that post offices can exploit further services, but we have not seen, to date, what those services will be. We have had promises about potential services, but as in the case of the press stories about PayPoint bidding for benefits contracts, for example, we hear one thing and then there is evidence of something else occurring.
Post offices are, in the main, independently owned, and the mutualised scheme assumes that the vast majority will opt into the mutual model, without providing any details on what that will mean in practice for a particular post office, which mutual model will be adopted, or whether Government will sit on the board of a mutual or a workers' co-operative or customer-workers' co-operative. Nor does it say what would happen to a sub-postmaster if they decided not to opt into the model. In any case, a mutual model offers no safety without a long-term guaranteed IBA for business. Royal Mail could, and probably will, seek cheaper access points after the IBA has expired.
How can the Government guarantee fair commercial negotiations between a privatised, large and powerful Royal Mail and a mutualised, smaller Post Office Ltd? Perhaps the two coalition partners, with one obviously being large and the other smaller, can give us some information on how such negotiations go ahead and how such agreements are reached. However, looking at this from the outside, it does not look particularly helpful for any form of Post Office Ltd taking forward any sort of commercial negotiations. If the position cannot be guaranteed, what message does that give to business and to the general public at large, and what chance is there of having an independent Post Office that opts out of a mutualisation scheme and goes into commercial dealings with a larger Royal Mail?
The Government's proposed pilots have yet to start and to prove how new services in post offices will have worked. That is not to say that they will not, but there is no evidence as yet for us, as legislators, to see that evidence before we carry on.
Postal Services Bill
Proceeding contribution from
Tom Blenkinsop
(Labour)
in the House of Commons on Wednesday, 12 January 2011.
It occurred during Debate on bills on Postal Services Bill.
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2010-12Chamber / Committee
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