The closure of the main Post Office in Kirkwall is just yet another example, in the long story of the once great Royal Mail, of the wrecking actions of successive UK Governments. The damage to this service, once the envy of many other countries, set in with The  Postal Services Act 2011. Orkney and Shetland MP, Alistair Carmichael, was a member of the LibDem/Conservative Coalition Government. He consistently voted for the privatisation of Royal Mail.

There was a time in its once great history that the Post Office and Royal Mail were basically the same thing, and people today still get that confused. Elected politicians and Government decided to change that and creeping privatisation took place – where profit takes over from service and accountability.

Royal Mail is the company that delivers parcels and letters – the provider of the universal postal service. It has a delivery office in Junction Road adjacent to the Kirkwall PO. The Post Office is the nationwide network of branches offering a range of postal, Government and financial services. Kirkwall Post Office was a Crown Branch.

Successive Conservative Governments had in the past looked into privatising the UK’s postal services but with a backlash from many of their own MPs and public disquiet these plans were watered down. Then in 2010 The Liberal Democrats went into a Coalition Government with the Conservatives and the privatisation of this once great national institution could really get underway. The  Postal Services Act 2011 was passed. The Act allowed for up to 90% of Royal Mail to be privatised, with at least 10% of shares to be held by Royal Mail employees.

Then on 1st April 2012, Post Office Limited became independent of Royal Mail Group, and was reorganised to become a subsidiary of Royal Mail Holdings, with a separate management and board of directors. A 10-year inter-business agreement was signed between the two companies to allow Post Offices to continue issuing stamps and handling letters and parcels for Royal Mail. The Act also contained the option for Post Office Ltd to become a mutual organisation in the future.

Today Post Office Limited is a company owned by the UK Government. The Post Office is owned by the UK Government, through the Department for Business, Energy and Industrial Strategy (BEIS) and UK Government Investments (UKGI), however, the Post Office Ltd Board has responsibility for the operations of the Post Office.

Back in 2024 the Chair of Post Office Ltd, Nigel Railton announced his five year Transformation Plan. This plan included 9 Crown Post Offices in Scotland under threat of closure. Kirkwall was one of them. In November 2025 Kirkwall Post Office came under new management by London-based Universal Office Equipment. It has struggled to staff its premises and now has closed. Alistair Carmichael LibDem MP for Orkney and Shetland is very angry about the closure calling it an ‘outrage’. Perhaps he may reflect upon his support and votes as part of that Tory/LibDem Government for privatising Royal Mail back in 2011, and everything that followed on from that.

The Post Office has since that decision to privatise Royal Mail also had the Horizon scandal which destroyed the lives and businesses of hundreds of sub post masters. It eventually led also to the closure of many Post Offices, including Stromness.

In Orkney there are still many small Post Office branches which provide an excellent service to customers in their communities.

Fiona Grahame