HC Deb 03 July 1997 vol 297 cc414-5
22. Mr. Pickthall

To ask the President of the Board of Trade if she will make a statement on her Department's policy towards improving the competitiveness of the Post Office. [5226]

Mr. Ian McCartney

Do you think I might have a little rest, Madam Speaker? I have been up and down, up and down. [Interruption.] Bring back Ken—at least he is funny.

Our policy is to ensure that the Post Office continues to provide a comprehensive and efficient range of postal services that meet customers' needs, represent good value for money and achieve a high quality of service standards.

Mr. Pickthall

When my hon. Friend discusses modernisation and competitiveness with the Post Office, will he impress on it the need to do something about some of its appalling employment practices, which, among other problems, are holding back its modernisation and increased competitiveness?

Mr. McCartney

The Government want to ensure good employment relationships in the Post Office—such relationships have not existed in the recent past. That needs to be changed. The Post Office needs co-operation and partnership. Trade unions must realise that management has to manage, but on a co-operative basis. The necessary changes to ensure that the Post Office remains at the cutting edge of international competition will require employers and employees at the Post Office to come together with a common approach and a common objective. When that is achieved, there will be security of employment for postal workers and the decisions on the future of the Post Office will be made on the basis of co-operation, not division.

Mr. Lansley

Will the Minister give an undertaking that there will be no cross-subsidisation between the protected services of the Post Office and those areas in which it has greater commercial freedom? Is it the Government's intention not to increase the Post Office's negative external financing limit beyond 50 per cent. of its profits?

Mr. McCartney

The purpose of the review is to examine those issues. When we have done so, we shall make a statement to the House.

Dr. Iddon

Is my hon. Friend aware that a modern and expandable postal sorting office at Wingates in Bolton is due for closure, affecting 400 jobs—many belonging to my constituents? Is he aware that that decision came out of the blue for the work force? Is he able to put pressure on the Post Office Royal Mail management to set up better lines of communication with the work force?

Mr. McCartney

I think that my hon. Friend knows that I am aware of that, because I was at the meeting when we discussed the issue. I gave a commitment to Members of Parliament from the north-west and wrote to all hon. Members from the area, from all parties, a detailed note about the proposed changes to the north-west's postal arrangements and investment plans. I have made it clear to them that I am available to consider and discuss with them matters pertaining to or impacting on their constituencies. I cannot be more fair and open than that.