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After 59 years of work with the Post Office
Lord Tony Clarke says any talk of privatisation should be ended
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Campaigners Palden Tsering, Joe Parmar and Nicola Seyd outside
the Marchmont Street Post Office, Bloomsbury, in an attempt
to stop its privatisation in November 2003.

Lord Tony Clarke
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THIS week Post Office (PO) workers are once again protesting
about the threat to their industry. A real threat is brought about
by voices that continue to advocate that the PO should be privatised.
Some voices, such as Allan Leighton, the chairman of the PO, are
clear and unmistakeable.
Just three days after Labours third election victory, Mr
Leighton was saying he supports a future share issue and part
privatisation of the Royal Mail. This, from a public servant who
should be bound by government policy and should not be seeking
to undermine Labours election manifesto commitment.
Not so clear are the shadowy people who advise the government.
Their influence is not new but it is ever present.
In recent years assurances as to the continued public ownership
of the PO have been given. Assurances from a government that many
people had expected would end the recurring suggestions that privatisation,
in any form, would not take place.
Many of us who are concerned, not just for the staff but also
for the future of our world renowned postal service, feel the
government has not yet put the matter to rest. It could easily
do so, by declaring unequivocally that there will be no privatisation,
no part privatisation and no gimmicky share holding schemes for
employees.
Behind the scenes there are those who see private ownership, either
by a share-based company or employee shareholding, as a means
of allowing greedy companies to put profit before service and
dividends before delivery standards.
For some time the need for reform of the PO has been evident.
The years of industrial unrest made it clear that some changes
were necessary. Staff responded magnificently to the challenges
brought about by enforced competition, they gave unprecedented
co-operation in turning the service around from loss to profit.
The recent return to profitability is welcomed; what a pity it
had to be as a result of cutting services and the loss of more
than 30,000 jobs, not to mention the closure of so many post offices.
The staff have paid a heavy price for the changes.
Like so many within the service I thought that the service and
employment would be safe when Labour won in 1997. I worked hard
over many years to get Labour elected, believing promises made
would be kept.
There had been many promises from Labour during the years of opposition.
Different things turned out to be. The Department of Trade and
Industry proposals contained in the Postal Services Act of 2000,
created the share base of the PO. It also gave birth to the monster
we know as Postcomm, an organisation that is supposed to be regulatory
but became the means of giving PO work away to get rich quick
merchants.
Operators, who again, because of the 2000 Act have the right to
dump the unprofitable parts of their operation into the PO for
delivery to each home in the country with tariffs charged that
give an unfair advantage to the licence holders.
The government allowed a European directive regarding liberalisation
to be enacted long before it was necessary to do so. It allowed
Postcomm to pay lip service to the need for competition at the
same time making decisions that threaten Royal Mails long-term
commercial viability. As the PO loses market share to the Postcomm
agreed licence holders, it has brought about a situation that
companies that do not have the fixed infrastructure costs of maintaining
and providing the Universal Service, can increase their profits
at the expense of Royal Mail.
There should be an end to political interference. For too many
years now there has been undue influence placed on the PO, especially
in relation to the tariff structures. By playing Pontius Pilate
and allowing the biased Postcomm to tie a noose around the neck
of Royal Mail the government chooses to ignore the need for fair
competition. All through the last few decades the central issue
of balancing the books, making reasonable profit for re-investment
and maintaining service standards; throughout the piece is the
common factor of political interference in the running of the
business.
Any plans for the well being of the Royal Mail must take into
account what the staff, through their union, have achieved over
the past few years. To ignore that co-operation and kick them
in the teeth with more talk of privatisation would be unforgivable.
How do ministers feel when the government-appointed Allan Leighton
makes statements that fly in the face of what the public were
told in Labours manifesto regarding the future of the PO?
The manifesto commitment was clear: We have no plans to
privatise it. Our ambition is to see a publicly owned Royal Mail
fully restored to good health...we will review the impact on the
Royal Mail of market liberalisation.
Before that review takes place we should hear from Mr Leighton
that he believes in a publically owned PO, committed to an efficient
universal service. If he cannot give such an assurance, the government
that hired him should sack him.
I have grave doubts about the future and the value of promises
made, thats why I shall be at the protest meeting and speaking
up for the PO I have had direct involvement with for 59 years.
The rally took place at Friends House, Euston Road,
yesterday, Wednesday.
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