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.
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.
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.
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.
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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