Postal Services Bill

Robert Halfon Excerpts

Wednesday 27th October 2010 Commons Chamber

[Vince Cable]

Of course it does need to be done anyway, but as I explained a few moments ago, the key point about bringing in private capital is that it brings in investment as well as new and better methods of management. There are separate issues involved. However, the right hon. Gentleman is quite right: the pension fund deficit needs to be dealt with. If it were not dealt with—if the thing just continued—there would be a real danger that it would contribute to the collapse of the company: that is why we have had to intervene.

I apologise to the House for going on for such a long time, but a large part of that has been taken up with interventions, as I was anxious to ensure that Members who had concerns were able to raise them.

The last section of my speech relates to reform of the regulatory regime. At the heart of this Bill, just like the last Bill, is protection of the universal postal service. The Bill will maintain the universal postal service at its current levels—that means six-days-a-week delivery and collection at uniform, affordable prices. I would like to reassure the House that I have no intention of downgrading this service. I know that some Members have been concerned about their constituents receiving a reduced service, and I share that concern. I have therefore ensured that the Bill contains new and stronger protections around the service than is currently the case—stronger protections, too, than were in the Bill put forward by our predecessors.

Members may not be aware of this, but the Government already have the power to reduce the minimum requirements of the universal postal service without even requiring a debate in Parliament. Through the European Communities Act 1972, it can reduce them to the minimum requirements of the European postal directive—that means five- days-a-week delivery and no requirement for uniform pricing. I do not think that that is an acceptable situation. Another way of putting it is that we have European regulation to protect the universal service obligation. This is one occasion where we are arguing in favour of gold-plating; indeed, as my hon. Friend the Under-Secretary has pointed out, we are platinum-plating this particular set of protections.

[Robert Halfon (Harlow) (Con)]

I very much welcome the reforms that the Secretary of State has announced today and the commitment to a universal postal system. However, will he allow other companies also to provide a universal postal system if they so wish?

[Vince Cable]

We cannot do it in that way. Of course, other companies have access to the market, subject to strict conditions, but we envisage that Royal Mail will continue to be the universal service provider: that is the basis on which we are proceeding.

The Bill puts in place three new safeguards: the platinum-plating, so to speak. First, the Bill ensures that no proposal to reduce the minimum requirements of the universal postal service can be proposed until the new regulator, Ofcom, has conducted a review of user needs. Secondly, any proposal to reduce the requirements of the universal postal service must be subject to a majority vote in both Houses of Parliament. Thirdly, any reduction in the minimum requirements cannot change the uniform nature of the service. The Bill states that the service and the price must be the same across the whole of the UK. I hope that Members in all parts of the House will support these new protections for the universal postal service.

--- Later in debate ---

[Mr Anderson]

I thank the hon. Lady for her intervention. If she would like to meet me outside in the Lobby, I will take her name and address and pass it to the general secretary of the Communication Workers Union. I will ask him to write to his 700 members at Beeston to ask them to contact their MP and tell her that they are happy to work for TNT or Deutsche Bank, and that they will be happy to see their pensions, shift allowances and jobs go down the river. If that is what the workers want, that is what the rigours of privatisation will deliver. The track record cannot be denied. We can pretend it does not happen, but that is the truth.

It is clear that there is nothing new in the Bill—

[Robert Halfon]

It seems that clause IV is alive and well in the Labour party. According to the hon. Gentleman’s logic, should he not nationalise everything? Why not put Sainsbury’s and Tesco under state ownership?

--- Later in debate ---

[Nia Griffith]

Perhaps if the hon. Gentleman had been here earlier, he might have heard some information that would have helped him to understand what he has just asked.

[Robert Halfon]

rose—

[Nia Griffith]

No, I will not give way; I wish to return to discussing today’s announcement about the money, because it is important. Of course new investment is to be made and it will build on the investment that the Labour Government put in, but with no guarantee that the Royal Mail will continue to use the post office network, that could be good money wasted. Furthermore, will the Minister please clarify whether this is new money for the Department for Business, Innovation and Skills that was not in last week’s comprehensive spending review—or will it lead to cuts in other business spending?

The Secretary of State gave us little insight into when the mutualisation of the post office network might take place, and no detail at all about the nature of the scheme envisaged. Most notably, he completely failed to make a convincing case for the wholesale privatisation of the Royal Mail; nor has any other speaker done so. Labour Members recognise the crucial role that public ownership has in safeguarding the public interest, and in making sure that taxpayers’ money is invested for public benefit and not for private profit. For that reason, we oppose the Bill.