Postal Services Bill

I hope that the hon. Gentleman would agree that there is a guarantee of public services built into the Bill. The Government are not party to the current arrangements between the two businesses, and they will not be in future. There is no statutory precedent for requiring particular commercial terms between two independent businesses. What the Government can do, however, is help to create the conditions in which both businesses can flourish in partnership with one another. We have heard this afternoon about the £1.3 billion funding package that is being provided to post offices, which will help the Post Office to deliver the best possible service to its new business partner. The hon. Member for Glasgow South West (Mr Davidson) mentioned the EU, and I will surprise him again by saying that we in this House are to blame for the EU legislation that has come forward. We have gold-plated the EU directive and created an uncompetitive situation by giving private companies compulsory access to Royal Mail and guaranteeing a margin for competitors. My hon. Friend the Member for Colchester mentioned the loss that is made on each competitor's letter; 2.5p is lost with the delivery of a competitor's letter.