HUHNE BACKS CHANGES TO POST PLANS TO SAFEGUARD THE MAIL (Eastleigh Liberal Democrats)

Eastleigh Liberal Democrats <enquiries@eastleighlibdems.org.uk>

HUHNE BACKS CHANGES TO POST PLANS TO SAFEGUARD THE MAIL

March 17, 2009 12:00 PM

Chris Huhne MP Eastleigh MP Chris Huhne has backed a Commons motion to oppose the Government's plans for the post office.

Commenting on Lord Mandelson's Postal Services Bill, Chris Huhne said:

"The postal system has always been and should continue to be a public good that communities rely upon for everyday needs, from sending packages to loved ones to opening savings accounts.

"This bill fails to provide the investment that the Royal Mail Group needs. Nor does it give employees a share in the business, or customers an ability to hold Royal Mail to account. Nor does it guarantee the public interest in a commitment to universal delivery of the mail across the British Isles," said Chris Huhne.

"What is more, the new entity will not be able to borrow money on the capital markets and is not given the go-ahead to get into fast-growing markets like a new Post Bank that could fill the gap left by declining traditional lines of business".

The Bill proposes the sale of a 49-percent stake in Royal Mail to private investors, the proceeds of which will help finance the "bail out" of the indebted Royal Mail Pension Plan. The bill has hit strong opposition even from Labour MPs.

Mr Huhne added: "The Government often comments on the importance of the postal system to the British economy and communications infrastructure, as well as noting that changes in the way people communicate have come at the expense of postal mail. The Government should put words into action by enhancing this vital public service after years of under-funding it".