Labour MP Liam Byrne, chair of the Commons Business, Innovation, Science and Trade Committee, has warned that Royal Mail is "far from fixed", as his committee published the government's response to its report on postal regulation and wrote again to Ofcom demanding answers.
In May the committee set a clear test: if Royal Mail's improvement plans failed to deliver meaningful change within six months, ministers should consult on changing Ofcom's duties and powers. With that deadline now a month away, the government's response makes no commitment to consult, saying instead that it would give serious consideration to any request from Ofcom for additional powers.
Liam Byrne: 'Reliable deliveries'
"Royal Mail is far from fixed. What the country needs is reliable deliveries, not another round of buck-passing between ministers and the regulator," Liam Byrne said.
"Repeated service failures and the prospect of a fourth consecutive annual fine demand a clear answer: what will make Royal Mail meet its obligations?"
"Reports that around 400 postal workers are leaving each week raise further questions about Royal Mail's ability to improve, with Christmas just two months away. Our six-month deadline for Royal Mail's improvement is just one month away. We need Ofcom to now show whether its action is working or whether there are gaps in its powers."
Pressure on the regulator
Ofcom has opened another investigation into Royal Mail's performance, which could lead to a fine for the fourth year running, but has given no indication that it needs further powers despite repeated service failures.
The committee's new letter to Ofcom chair Sir Ian Cheshire asks about the regulator's discussions with ministers, whether its powers are adequate and what action it will take to secure lasting improvements for households and businesses.
The committee also highlighted reports that around 400 postal workers are now leaving the company each week, compared with the 326 weekly departures the Communication Workers Union says were happening before Royal Mail's revised delivery arrangements were introduced.
Liam Byrne added: "People deserve a postal service they can rely on, especially at the busiest time of year. The recommendations are there - now we need to see action."
