Question

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the Answer of 14 September 2015 to Question 9138, what assessment he has made of whether payment by his Department to Royal Mail in respect of the Postcode Address File constitutes state aid to Royal Mail.

The Department does not consider payment to Royal Mail in respect of the Postcode Address File to constitute state aid to Royal Mail..

There is a licence agreement in place between the Public Sector and the Royal Mail for the supply of address data. This agreement is managed and paid for by the Department, on behalf of public sector users. The agreement enables the Government to deliver procurement by acting as a single customer.. Like private sector users of the address data, the Public Sector pays the Royal Mail a royalty for the use of the data.

Royal Mail’s licensing of this address data is regulated by OfCom under section 116 of the Postal Services Act 2000 which requires them to provide licences on fair and consistent terms to all.