HC Deb 06 November 1996 vol 284 cc1230-1
9. Mr. Harry Greenway

To ask the President of the Board of Trade if he will make a statement on the future of the Royal Mail. [533]

Mr. Lang

The Government's plan for the future of the Post Office, including Royal Mail, remains as set out in a statement on 11 May 1995 by my right hon. Friend the then President of the Board of Trade.

Mr. Greenway

Is my right hon. Friend aware that the public do not understand the recent strikes which have caused such disruption to their mail and that they certainly would not understand any disruption of their Christmas mail—or its complete stoppage? May I have his assurance that he will take all necessary steps to guarantee the smooth delivery of Christmas mail, bearing in mind how much that means to people in this country and all over the world?

Mr. Lang

To the extent that that is in my gift, of course the answer is yes. I do not believe that there is any need for further industrial unrest or strikes by the postal unions. It is quite clear from the ballot which was held that less than half the membership voted for the strike; 75,000 members did not vote to strike, which does not constitute a mandate. I invite the Labour party to join me in calling on the postal unions not to disrupt the Christmas mail, with all the hardship and misery that that would bring to the public.

Mr. O'Neill

Does the President of the Board of Trade realise that he has succeeded in uniting the unions and the Post Office on one thing—their condemnation of his increase in the external funding limits, which is crippling the investment programme of the Post Office? In the long term, that is more likely to jeopardise industrial relations and the harmony that should exist in that company than anything on which the unions and the management are failing to agree now.

Mr. Lang

The hon. Gentleman is talking absolute nonsense. Since May 1995, the Post Office has had a new corporate planning process. We have abolished the restrictions on capital expenditure and we have granted the Post Office significant end-year flexibility. The important thing is that the Post Office uses that flexibility and its capacity to manage its own organisation for the benefit of the Post Office.