Postal Services Bill

My Lords, Amendment 24B would strengthen reporting requirements on the Post Office to reflect also on the use of the network by the universal service provider and how this may have changed in the preceding year. Once again, Clause 11 requires the Post Office to send a report to the Secretary of State each year about its network of post offices. As I have previously said, the network must give details of the number and location of post offices in England, Wales and Northern Ireland. It must also give details of the postal services, the services provided under arrangements with a government department and other services provided by the Post Office. It must further give details of the accessibility. I will not repeat what I said on the previous amendment, but the reporting arrangements in Clause 11 are important and wide ranging. However, they can be helpfully strengthened by Amendment 24B to reflect the challenges that the Post Office will face following separation from Royal Mail. It is vital that due consideration is given as to how the universal service provider—currently Royal Mail but following the successful passage of this Bill potentially one or more alternative postal operators—will use the post office network when it ceases to be part of an integrated company. Many stakeholders have grave concerns regarding the risk to the post office network from the proposals in the Bill to separate Post Office Ltd from Royal Mail. The Post Office is dependent on Royal Mail business for its survival. One-third of its revenue and one-third of sub-postmasters’ pay is generated from selling Royal Mail products and services. If the two businesses are forced to separate, a privatised Royal Mail will be, or could be, likely to look elsewhere for retail outlets to sell its products. There is no guarantee it will use post offices to the same extent. The Bill does not safeguard the inter-business agreement through which Royal Mail guarantees use of the Post Office as its retail arm. When it comes to be renegotiated a privatised Royal Mail will look to reduce costs, possibly by using other outlets such as supermarkets or high street chains instead of post offices. The Government will not undertake to extend the current five-year IBA to 10 years. It is on those grounds that we believe that Clause 11 needs strengthening as per the amendment. I beg to move.