Postal Services Bill

My Lords, I shall also speak to Amendments 71 and 73, which stand in my name. I will also say a few words, if I may, on Amendment 63A in the name of the noble Lord, Lord Young, which seeks to amend my Amendment 63. I believe that these amendments will address concerns raised in this House about access to postal services in rural areas or by vulnerable groups. They also address questions raised in the other place about access by consumers to Royal Mail’s services. The central concern of those who have raised such issues is: how can we ensure that people right across the country and from all walks of life continue to receive the high standard of postal service that they depend upon? It is with this in mind that we should look at Clause 28(4) of the Bill, which specifies that Ofcom’s duties include ensuring that there is, "““provision of sufficient access points to meet the reasonable needs of users””." An access point here encompasses pillar boxes, post offices and, "““any … receptacle or other facility provided for the purpose of receiving postal packets, or any class of postal packets, for onward transmission by post””," so Amendment 63A, in the name of the noble Lord, Lord Young, is not needed because ““access points”” in this instance includes post offices. In determining the ““reasonable needs of users””, Ofcom will conduct thorough research and analysis, and will naturally consult users in order to take their views into account. Ofcom will also be bound by its duties, which I have just set out. I am confident that this will mean that Ofcom’s requirements on the distribution of access points across the country will continue to ensure that all users can post their letters, packets and parcels in a convenient way. However, while we are clear that the reasonable needs of users is the right test—it flows from the EU directive and is the duty that we have placed upon Ofcom—it is conceivable that in some cases the Government may wish to apply different considerations. For example, we may have wider public policy objectives to consider, perhaps in relation to rural policy or small business support. Such broader public policy goals are quite rightly a matter for the Government, not for an independent sector regulator. I therefore hope that your Lordships will welcome this amendment, which allows the Secretary of State to step in and require Ofcom to ensure sufficient access points throughout the United Kingdom to meet the interests of the public. The term ““interests of the public”” is not defined but would allow the Secretary of State to take a broad approach and ensure that the Government could intervene for a range of reasons, some of which I have just described. This is not an amendment that we would ever expect to use. Its inclusion simply serves as a failsafe to address the legitimate, albeit unlikely, concerns expressed by noble Lords. Given Ofcom’s wider duties under this Bill, for example on the financial sustainability of the universal postal service, this amendment also requires the Secretary of State to consult with Ofcom before making such a direction, in order to determine the consequences of such an action. Amendments 71 and 73 clarify the procedure for making, varying or revoking this direction and any others that may be made by the Secretary of State under Part 3. Amendment 71 does not make a material change to Clause 60. The amendments to the general procedural provisions in Clause 63 simply mean that an express provision is no longer needed in Clause 60. I hope that all your noble Lordships feel able to support these amendments. I beg to move Amendment 63. Amendment 63A (to Amendment 63) Moved by