HC Deb 14 February 2002 vol 380 cc295-7
3. Mr. Mark Hoban (Fareham)

what recent representations she has received regarding the performance of Consignia. [33791]

The Secretary of State for Trade and Industry (Ms Patricia Hewitt)

I regularly receive representations regarding the performance of Consignia from a range of sources.

Mr. Hoban

Given the impact of unofficial strikes by the Communication Workers Union on Consignia's performance, does the Secretary of State agree that the threat of such industrial action is reckless and irresponsible? Will she join me in condemning that union's threats against Consignia?

Ms Hewitt

The hon. Gentleman has perhaps forgotten that, under the Conservative Government, the average number of days lost each year through strikes in the Post Office was 145,667. We have slashed the number of days lost through industrial action, and industrial relations have improved significantly since the Sawyer report. As I have said before in the House, I continue to urge management and unions, with the help of mediation, to settle this pay dispute as quickly as possible.

Mr. George Stevenson (Stoke-on-Trent, South)

In considering the performance of Consignia and its business, will my right hon. Friend also take into account yesterday's devastating news that Royal Doulton intends to close its north Staffordshire factory and transfer the business to Indonesia? As Consignia gets a great deal of business from Royal Doulton in north Staffordshire, will she be good enough to write to the company to find out the exact reasons for its decision, and its effect on Consignia's business and on other small businesses in the area?

Ms Hewitt

My hon. Friend makes an extremely important point about the effect of the job losses announced yesterday on Consignia, his constituents and their families. I will of course ensure that my officials are in touch with the company, so that we can understand fully the reasons for its decision and establish whether we can give any help.

Mr. Richard Page (South-West Hertfordshire)

Under the Secretary of State's fingertip control, 30,000 redundancies have been announced; Consignia has lost money; thousands of sub-post offices face closure; and a terrible strike is about to hit. Does she accept that the best action that the Government can take is to set Consignia free by privatising it?

Ms Hewitt

As I said recently in the House, the Post Office's problems stem directly from the years of drift and decline under the Conservatives, and their failure to allow it the necessary freedom to make investments and changes at a time when every other postal service in Europe was making such changes. We have delivered what the Post Office needs—commercial freedom within the public sector. We are delivering the stronger management that is necessary, and management and unions are working together much more effectively since the Sawyer report, which we commissioned. Management and unions are sitting down together and talking about the business restructuring that must take place.

I am confident that the changes that the Post Office needs are being made by Government, management and the unions. As a result, customers will get the better service that they urgently need.

Mr. Michael Connarty (Falkirk, East)

Has my right hon. Friend seen the rather frightening report from Postcomm, the regulator? Has she also seen early-day motion 797—signed by more than 100 Members so far—which says that we should leave Government, management and work force to get together, as they are at present, to bring about an improvement in Consignia's performance, rather than taking precipitate action? Will she accordingly allow much more time for consideration of, and consultation on, what I believe to be an unnecessary and damaging recommendation by Postcomm?

Ms Hewitt

Postcomm's proposals are simply proposals for consultation. That consultation is taking place, and I have no doubt that Postcomm will take full account of the views of Members as well as others.

I remind my hon. Friend that in the Postal Services Act 2000 we have written into law, for the first time ever, a universal service obligation, which will apply to Consignia. We have also established that Postcomm's primary duty is to ensure that a universal service is delivered. Any proposals or decisions from Postcomm about market opening must be subsidiary to that duty.

Mr. Nigel Waterson (Eastbourne)

Is not today's Order Paper stark testimony to the concern in all parts of the House about our failing postal service? Does the Secretary of State not agree with the regulator's proposals for the liberalisation of postal services? If there is a national postal strike, will she back any move by the regulator to safeguard our postal service by lifting Consignia's monopoly?

Ms Hewitt

I have already said that I share the concern in all parts of the House about Consignia's performance. I have also explained why the deterioration in its performance has taken place. The hon. Gentleman should be well aware of the failure of the Government whom he supported to enable the company to make the necessary changes. Those changes are now happening.

The regulator's primary duty is to ensure that a universal service is maintained, and that would apply in the event of a strike.