Postal Services Bill

My Lords, Clause 33 provides for a process that has been accurately and elegantly described by the noble Lord, Lord Low, whose amendment concentrates on the Secretary of State’s powers. That is clearly the right place to put the emphasis. There seems to be no case at all for preventing Ofcom carrying out the review. The clause is expressed in entirely neutral terms, but in accordance with European legislation. It just says: "““OFCOM may from time to time review the extent to which the provision made … reflects the reasonable needs of the users””." I cannot see how anybody could object to that. The review might indeed come out as saying not that the obligation should be reduced but that it should be increased. It is a neutral expression. What is of more consequence is the point made by the noble Lord, Lord Low. Not only can the Secretary of State direct Ofcom to carry out a review without prejudice to what that review says or what the Secretary of State’s reaction to it will be, but he also has these order-making powers. What is being sought by the amendment of the noble Lord, Lord Low, is a statutory delay in the ability to use those powers. I find that difficult because Ofcom is coming to this service obligation afresh. We simply do not know what conclusions about the overall needs of the regulatory regime it will come to when it presents them in the first quarter of next year. Ofcom is independent, very large, very experienced and has substantial resources. It is most unlikely that it will come to conclusions that do not meet the reasonable needs of the users of postal services. That is what it is required to take into account. In that event, we could speculate about the content of an order made by the Secretary of State in response to an Ofcom review but, frankly, it would be pure speculation. There is the conspiracy theory that is being promoted by the Benches opposite. Nothing supports the contention that there is a conspiracy in this. You can have doubts about how private sector companies behave. They have an ability sometimes to be one step in front of Whitehall because, on the whole, they do their homework with great diligence and know what they are allowed to do and what they are not allowed to do. However, we have decided in this Bill that we want private sector investment in both Royal Mail and, eventually, via the mutual option, the post offices. Then we come to the question of whether the Secretary of State would decide, in response to an Ofcom review, to make an order. It is not self-evident that the order would diminish the obligations under the universal service provider’s arrangements. It might do the opposite. The order is also subject to the affirmative resolution, which means that it gets debated in both Houses. If one House or the other does not like it, it can vote it down. The safeguards in this clause, particularly in view of the speed with which this market is moving and of the relative newcomer Ofcom coming to the scene at a very important time, mean that there is nothing in the clause to which we should object.