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Stop privatisation of our postal service
13th June 2009
The New Labour Government are planning to privatise major parts of our postal service to private companies. This represents the first steps towards the outright privatisation the postal service, which will lead to higher prices, more closures of local offices, cuts to services and job losses. This has been the result in those countries where the postal service has been privatised.
Royal Mail is a vital service which must not be allowed to be handed over to private companies who are only interested in making profits, not providing a public service.
Privatisation arguments answered
“Private money is needed to modernise the postal service”
The unelected ‘Baron’ Peter Mandelson, who was appointed as a Minister by Gordon Brown, has argued that it is necessary to part-privatise Royal Mail in order to attract investment to modernise the postal service. This does not stand up. In 2007, the Government announced that £1.2billion was to be made available to modernise Royal Mail. Only half of this money has been invested, leaving £600 million of public money available for further investment. Private capital is not needed.
“Royal Mail is not a viable entity”
It has also been stated by the New Labour Government that Royal Mail is not viable and is losing money. Another lie. Royal Mail in fact makes almost £1million profit a day!
“Private competition would result in a better service”
Royal Mail delivers a service to all parts of the country, with delivery services six days a week. TNT, one of the private companies lined up to take over parts of the postal service in some parts of the Netherlands only delivers twice a week! Privatisation will also lead to higher prices. For example, a 50g letter costs nearly twice as much to post in the Netherlands than the United Kingdom.
Strike action needed to defeat Governments privatisation plans
There is massive opposition to privatisation of parts of Royal Mail. Strike action by postal workers would receive the overwhelming public support and could force the Government to back down. The CWU (postal workers union) should also immediately stop donating £1million to New Labour every year. Instead this money should be used to launch a new mass party which represents workers and can challenge the privatisation agenda of all the main parties in elections.
The Socialist Party believes a mass political alternative is needed which stands up for the interests of working class people and promotes socialist policies which cater for the needs of people and society as a whole, not profits for the few.