Royal Mail: Universal Postal Service

Lord Young of Norwood Green Excerpts

Thursday 19th June 2014 Lords Chamber

[Viscount Younger of Leckie]

Yes, and I know that the chief executive of Royal Mail made a few comments about this a few weeks ago. I should, however, reassure the House that Royal Mail delivers more than 99% of all letters and 37% of parcels. Other suppliers—that is, the incoming competition—directly deliver around 24 million items per year, compared to the 55 million items per day delivered by Royal Mail. So the competition is healthy but is not a threat.

[Lord Young of Norwood Green (Lab)]

The noble Viscount said that only Parliament can change the universal postal service, but is he not concerned about the fact that we have had already one massive increase in stamp price, with a further increase being projected by Royal Mail? Should he not, therefore, take a bit more seriously the threat of competition and the way in which it emerging? I can only reinforce the point that my noble friend Lord Hoyle made about the need to ensure that Ofcom, in delaying unnecessarily the response on this vital issue, does not undermine what everyone in this Chamber treasures—the universal postal service.

[Viscount Younger of Leckie]

The restrictions were laid down by this Government when we came into power, with the Postal Services Act going much further than any restrictions put down by the previous Government. Competition is healthy, and it is very much a matter for Ofcom to review the progress of Royal Mail. Ofcom continues to do that and will give a proper, full assessment at the end of 2015.