The Postal Services Directive and postal privatisation
There have been reports that Government proposals to part-privatise Royal Mail and the recent closures of some post offices in the UK are a direct result of EU legislation and, in particular, of the directive on postal services liberalisation that was completed last year. Most of these reports have been instigated by UKIP and are simply not true. The EU legislation is about market access, not privatisation.
As regards market access, Labour MEPs have, for over 15 years, been fighting against Commission proposals that would excessively liberalise the postal market. In that time, we have faced tough battles and, though we have seen gradual liberalisation of the sector, and the partial erosion of the reserved area, we have made secured important protection for postal services across the European Union.
In particular, we have secured a legal requirement for a defined universal service whereby letters will go on being both delivered and collected at least once a day, at least five days a week, for every EU citizen, in remote areas as well as towns and cities. These standards will apply irrespective of who is running the service and are vital to keeping a postal service in which the priority is public service, not profit.
Liberalisation of the market (which was started by the UK Government in the early 1990s, long before the EU legislation was brought in) allows private operators to offer postal services in the UK and compete with the Royal Mail in the same market. However, it does not in any way suggest that the Royal Mail can no longer be owned or run by the UK Government.
Any decision to part-privatise the Royal Mail, as well as decisions on subsidising rural post offices, are decisions for the British Government.
In fact, the Commission has continually approved the UK Government's £150 million a year subsidy to maintain post offices on the basis that they provide a vital public service. This is why it was crucial for the Royal Mail to secure the new contract for the pensions and benefits card account last year. If they had lost this contract then the subsidy would have been in jeopardy as it would no longer be deemed to be offering the same level of public service.
However, while Labour MEPs have fought against the more liberalising tendencies of the Barroso commission, the Conservatives, UKIP and the Lib Dems voted against a number of important amendments in the European Parliament. Those three parties voted against an amendment stating that Member States "should ensure that the financing of a universal service is guaranteed at all times in a liberalised market". Despite this, the amendment passed, helping us to secure a guaranteed universal service.
Furthermore, the Tories and UKIP both voted against an amendment to protect the social conditions and rights of postal workers and ensure that social security regulations within the each Member State are respected. This amendment was also passed despite their opposition.
Details of the Postal Services Directive
The 2006 liberalisation was the latest in the line of attempts by the Commission to fully liberalise the European postal services market. Labour MEPs have always urged caution when doing this and has advocated that, at the very least, this should be done gradually, with guarantees that services would not be sacrificed. We have been partially successful in this, but have been unsuccessful in stopping the phasing out of the reserve area.
Previously a reserved area was in place whereby any mail with a weight of less than 50 grams would have to go through the universal service provider (eg Royal Mail). This will no longer apply from 2010, as private operators may now have access to this area of the market.
However, in return we have managed to protect a guaranteed universal service. The legislation states that a universal service must be in place and Member States must ensure that their postal services offer at least one delivery and collection five days a week for all citizens and at the same time must also guarantee a well functioning postal network with a sufficient number of access points in rural regions. These standards will apply irrespective of who is running the service and are imperative to keeping a postal service where the priority is public service not profit.
Currently in the UK , the universal service is comprised of collection and delivery six days per week, which the government has made a commitment to keeping.
The EU directive also includes safeguards for workers by making sure that, under EU law Member States, in conjunction with unions, have the right to impose conditions on postal services operators for non-economic reasons and must comply with employment conditions and existing social security schemes.
The deadline for market opening is set at 31st December 2010 for the EU-15 and a deadline of December 2012 for the 12 Member States who have joined the Union since 2004 in order to give these countries time to adjust.
Labour MEPs will continue to support the postal sector and its workers in the EU and domestically and ensure that postal services and employment legislation guarantees the best possible deal for consumers and postal workers.