Postal Services Bill

My Lords, I suppose that I ought to start by saying that I live in Cornwall, which may put the Committee’s mind at rest. I have some idea about the differences of living in Cornwall and in the centre of London. Indeed, I apologise, for so does the noble Baroness, Lady Dean. There are quite a few of us around the Committee tonight. Amendments 16 and 16A touch on the issues that we will be debating under Clause 11, about the annual report on the post office network, as well as under Part 3 on the regulatory framework for the postal sector. Amendment 16 would require the Secretary of State to consult various groups before a disposal of shares and to lay a report before Parliament setting out how the minimum requirements for the universal postal service, set out in Clause 30, will be maintained. Amendment 16A requires the Secretary of State to submit reports to the devolved Administrations about the impact of proposals in the Bill on post offices, small and medium-sized businesses, communities in remote areas, pensioners and those with disabilities. I hope to reassure noble Lords that the existing and future duties of Ofcom and existing reporting requirements are sufficient to meet their concerns. I will first address the points raised in Amendment 16 by the noble Lord, Lord Low. Under Part 3, Ofcom will have responsibility for regulating the postal sector and its primary duty in that regard will be to ensure the provision of the universal postal service. The noble Lord, Lord Low, was concerned that Clause 29 would allow the minimum requirements of the USO, particularly the requirement for Articles for the Blind, to be reviewed by Ofcom and changed within 18 months. Let me reassure him that the requirement for a review within 18 months is for the very particular products and services that Royal Mail is required to deliver. It can have no impact on the statutory protections for the minimum USO requirements in Clause 30, including free services for the blind. The noble Lord, Lord Low, was also concerned that a private Royal Mail could charge higher prices to customers in rural areas. Again, let me reassure him that Clause 30 also provides that pricing of the universal service must be, "““uniform throughout the United Kingdom””." As I said when we debated Amendment 10, Ofcom will report annually to the Secretary of State on its activities, including the provision of the universal service, and the Secretary of State is required to lay that report before each House of Parliament. I shall address the concerns of my noble friend Lady Kramer, among others, about vulnerable people. When performing its duties under the Bill, Ofcom’s general duties in the Communications Act 2003 will also apply. In everything that Ofcom does on post, it will have to have regard to various areas and groups as set out in Section 3(4) of the 2003 Act. Those include: the needs of persons with disabilities, of the elderly and of those on low incomes; the opinions of consumers in relevant markets and of members of the public generally; and the different interests of persons in the different parts of the United Kingdom, of the different ethnic communities within the United Kingdom and of persons living in rural and urban areas. That list covers all the groups set out in the amendment tabled by the noble Lord, Lord Low, so I hope that he will be reassured by that. Importantly, those requirements on the performance of Ofcom’s duties will apply to all future regulation of the postal sector, so they will be more enduring than a snapshot assessment at the time of sale. Given Ofcom’s role and duties, it would not therefore be necessary for the Secretary of State to lay a report to Parliament on the maintenance of the universal service, as suggested by Amendment 16. I now turn to Amendment 16A in the name of the noble Lord, Lord Touhig, whom I met coming out of the room as he was going into it. I think I said something to him like, ““I hope that the atmosphere that I have left behind me will make for a convivial exchange of opinions today””. The noble Lord, Lord Razzall, guaranteed that that happened for absolute sure. There is no doubt about it; if anything can ever be said of this man, it is that he is as subtle as an air raid. The proposals in the Bill have one overarching objective: to secure the universal postal service in the United Kingdom. I place emphasis on the ““United Kingdom””, for that is what it is and because that is what the universal service is all about. It is a postal service that is available to all and delivers to all addresses in our United Kingdom. We have ensured in the Bill that the universal service continues to include uniform prices, so that the price of a letter from London to Surrey will always be the same as a letter from London to Aberdeen. We have been asked about a note possibly being put in the Library giving us all clearer information on that. I am sure that the people behind me in the Box are frantically thinking what they will put in it and that they have everything at their fingertips, so I hope that will be the case. Not only does the Bill ensure uniform prices, it also ensures, through Clause 33(6), that the other minimum requirements of six-days-a-week delivery and collection cannot vary across the country. The minimum requirements, in any respect, in one part of the country cannot differ from those in another. The amendment tabled by the noble Lord, Lord Touhig, would require the Secretary of State to submit reports to the devolved Administrations on the impact of the proposals in the Bill on the service in Scotland, Northern Ireland and Wales.