DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2009/170)
issued by COI News Distribution Service on 20 May 2009
The
Government's Postal Services Bill successfully cleared its
third reading in the House of Lords today and will now pass to the
House of Commons.
Business Secretary Lord Mandelson said:
"This is an important landmark in the Bill's passage
through Parliament. The legislation has emerged stronger following
the numerous debates in the Lords and the constructive and helpful
input from Peers.
"The Government remains convinced that the huge challenges
facing Royal Mail must be addressed by a comprehensive package of
reform. Letter volumes are expected to fall by as much as 10%
every year as people turn to email and other forms of
communication, with each 1% fall costing the company around £70m.
The company is also technically insolvent due to its volatile
multi-billion pound pension deficit.
"Royal Mail is facing decline and it would be a dereliction
of duty if we did not take action to secure the company's future."
The Postal Services Bill has been strengthened by a number of
amendments which the Government made in response to the
constructive debate in the Lords. These include:
* Clarity that the legislation allows an employee share scheme to
be created, provided that Royal Mail remains publicly owned. The
Government believes it is important that employees have a serious
stake in Royal Mail's success. It wants to discuss this issue
with any partner before deciding how best to incentivise
performance and deliver value for money.
* A new requirement for the Post Office to produce an annual
report on the breadth and accessibility of the Post Office
network. This will ensure that transparent information about how
accessible the network is, in particular to small businesses,
rural communities, the elderly, people with disabilities and other
vulnerable groups, is published every year.
* The Secretary of State must report to Parliament on any sale of
shares in Royal Mail. The report would be made after any agreement
had been signed and set out the objectives and criteria for any
sale and if they have been achieved, and the principal terms.
* A new requirement for Ofcom to report on the cost of fulfilling
the universal service obligation (collecting and delivering mail
six days per week at a uniform price). Ofcom will also have powers
to ensure that the price other postal operators are charged by
Royal Mail to access its network, including delivery over the
final mile, properly reflect those costs.
The Bill now passes to the House of Commons, where it will be
debated by MPs in early June.
ENDS
Department for Business, Enterprise & Regulatory
Reform
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215
6740 (for those with hearing impairment)
http://www.berr.gov.uk