Posts Tagged ‘coalition government.’

Ed Davey Privatises the Royal Mail – 2011

Monday, January 22nd, 2024

Ed Davey Privatises the Royal Mail: 2011 is a year Liberal Leader Ed Davey would like to forget, particularly now that the scandal around the persecution of postmasters wrongly convicted because the Post Office and Fujitsu refused to admit the Horizon software had serious faults, long exposed by Private Eye and Computer Weekly, has now emerged into public view.

Ed Davey Privatises the Royal Mail

In 2011 Lib-Dem MP Edward Davey, MP for Kingston & Surbiton as was heading the Tory/Lib-Dem coalition’s plans to sell off our postal services as Minister for Employment Relations, Consumer and Postal Affairs. Before becoming an MP he had worked as a management consultant in Sweden, Taiwan, Belgium, South Africa and elsewhere, who specialising in postal services.

Ed Davey Privatises the Royal Mail

His then boss, Business Secretary Vince Cable, was the Lib-Dem MP for the neighbouring constituency of Richmond & Twickenham, so the plans to sell off the publicly owned Royal Mail came from Lib-Dems in this small area of West London.

Ed Davey Privatises the Royal Mail

So Kingston was the obvious place for the national ‘Keep the Post Public’ protest on Saturday 22nd January 2011 and over a thousand came from across the nation for a rally and march there.

Ed Davey Privatises the Royal Mail

Kingston-on-Thames was also relevant for the royal connections incorporate in its name. Kingston is a Royal Borough and the town where many of the earliest Kings of England were crowned, and the march passed within a few yards of the Coronation stone in front of Kingston Guildhall before ending by the River Thames.

And although the Queen herself was unable to come and defend her Royal Mail, a fairly convincing royal look-alike came suitably dressed to give a royal address against selling off her Royal Mail.

Also there to speak were a number of trade union leaders including CWU general secretary Billy Hayes, Dave Ward of the CWU Postal department, Jim Kirwan, CWU London regional secretary, Christine Quigley of London Labour Youth and Christine Blower, the NUT General Secretary. Others speaking included the local Labour candidate and a school student who got huge applause for telling the rally how they had organised and occupied their local school against government cuts and fees increases.

Speakers pointed out that privatisation would result in price rises and the abandonment of the universal service which requires the Royal Mail to deliver and collect to all of the 28 million UK addresses six days a week at the same cost. And we have since seen this happen although not officially; we now get deliveries of mail on perhaps four or five days in a typical week and the collections have become far more erratic.

The cost of a First Class Stamp was then 41p. Presumably as a sweetener for buyers of the privatised company there was already to be a 5p rise in a few months time. If prices had risen simply according to the Bank of England’s inflation calculator, the stamp should now cost 58p but the actual cost now is over double that at £1.25 – a huge increase. And although using a First Class stamp was supposed to mean next-day delivery, First Class letters now regularly take 2 or 3 days or more to arrive.

There were fears that the privatisation would have negative effects on Post Offices, which had been separated from the Royal Mail delivery service since the 1969 Post Office Act, but there were still strong business connections. So far this has not led to many post office branch closures, although many branches are now part of larger stores such as W H Smith. It remains to be seen what effect the closure of many of this company’s high street outlets as it moves towards a focus on travel will have.

In 2011 I wrote “An ICM poll in 2009 found that 78% of us believed selling Royal Mail would be a bad deal for the taxpayer and 82% thought prices would go up.” And it’s clear that we were right. I (and the coalition government) also thought that “the Royal Mail represents rich pickings for the rich supporters of the government“. Its operating profits since 2013 have been over £400 million in every year except 2020 and in 2022 were £758 million. We are paying through the nose for a reduced service. That’s privatisation for you.

More about the march and pictures of the speakers and marchers on My London Diary at Keep Royal Mail Public.


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Students March against Fees and Cuts – 2012

Monday, November 21st, 2022

A student displays the #DEMO2012 t-shirt

One of the main issues that led to a huge slump in votes for the Liberal Democrats in the 2015 General Election was their support as a part of the Conservative-Lib Dem coalition government for increasing student fees. In 2010, there were 57 Liberal Democrat MPs, but their number fell to 8 in 2015, and has only recovered slightly in the two following elections, with currently 11 MPs. Of course the drop is exaggerated by our first past the post electoral system which is grossly unfair to minority parties, but it still reflects an enormous drop in public confidence in the party.

Students March against Fees and Cuts - 2012

Before the 2010 election, the Lib-Dems had been seen as a moderate centrist party opposed to both Tories and Labour, but their actions in the coalition shifted perceptions; in many eyes they became seen as simply a rather lightweight branch of the Conservative Party and certainly no longer a credible opposition.

Students March against Fees and Cuts - 2012

It was the Labour Party who had introduced student tuition fees under Blair’s New Labour government in 1998, setting them at £1,000 a year. New Labour again raised them in 2006 to £3,000. But in 2012 the Tory Lib-Dem coalition tripled them again, to £9,000 – so totalling £27,000 for a normal 3 year course. The fees were stated to be a maximum, but it was soon what almost all universities were charging.

After World War 2, most local authorities had provided maintenance grants for students, enough to cover their living costs for the roughly 30 weeks a year of most courses. The 1962 Education Act made this a legal obligation; the grants were means-tested with a minimum of around a third of the full grant, with wealthier parents being expected but not obliged to make up the difference. But all of us from poorer families got the full grant.

When the Tories under Mrs Thatcher replaced these grants with student loans in 1980 there was an immediate fall in university applications – the 1981 figures showed a drop of 57% from 1979. The loan system was a boon to students from wealthy homes, taking the obligation from their parents for supporting them – and at the start the terms of the loans made it an advantage for rich students who had no need for them to take them out. Since then the terms of the student loans have worsened considerably.

Many have since found that with rising costs the maintenance loan available isn’t enough to pay for their accommodation and food and some need to take out more expensive loans than the student loan to keep alive during their course. I’ve seen too the long queues for the free food offered by Hare Krishna in Bloomsbury at lunchtimes, and students have also had to go to food banks and other places offering support.

Many students now work during term-time, some putting in long hours in bars and other part-time work which must affect their studies. When I was a student, taking paid work could have led to me being thrown off my course, although of course I did work during vacations, and needed to, as these were not covered by the grant.

Higher education students are not the only ones who were suffering from the cuts made by the Coalition government. Younger students, 16-18 year olds still in schools, sixth form colleges and FE, were angry at the loss of the Educational Maintenance Allowance (EMA) of up to £30 per week, which many needed to pay their fares to college and to buy midday meals while studying.

And as I pointed out “Students are also concerned about other cuts being made by the government which will affect them, and also by the increasing efforts to privatise the education system at all levels. There were also many placards pointing out the class-based nature of our education system and our government, with a cabinet stuffed with privately educated millionaires who appear to have little idea of how difficult times are for ordinary people and no real sympathy for them.”

Since the student protests of November and December 2010 the police had become very worried about the possibility of violent scenes – often provoked by police action – at student protests, and were out in force. The march organisers too had agreed a route with the police which would cut down the possibilities, taking the marchers across Westminster Bridge to end with a rally in Kennington Park, well away from any government ministries and Tory and Lib-Dem party headquarters. This was a peaceful protest although the roughly 10,000 attending were clearly very angry and small groups who attempted to break away from the protest in Parliament Square where the march stopped for a photocall and many sat down on the road were fairly soon moved on.

There were still a few sitting on the road or standing around outside parliament when I decided to leave; it was raining slightly and dark clouds suggested a downpour was on the way. I decided nothing more was likely to happen at Westminster and that a rally in pouring rain was unlikely to be of great interest and started on my way home.

More at Students March on Parliament.