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Mr. Byers: There is a serious issue here, and I am not quite sure that the hon. Member for Gainsborough
(Mr. Leigh) took it quite as seriously as perhaps he should. We have based the plc and public ownership model for the Post Office on one that works very well in other countries, such as Australia, New Zealand, Finland and Sweden. The post offices in those countries have flexibility and commercial freedom, and are able to work in the wider national interest. We believe that Britain's Post Office can do so as well. Clearly, in due course, there will be consideration of strategic alliances and acquisitions--this is a rapidly changing world--and I specifically mentioned those considerations in my statement.
I reassert that there are no plans to dispose of shares. If legislation is brought to the House in the near future, it will contain no such proposals. Such a Bill would make it clear that, if there were any intention to do that, it could not be done by stealth. The matter would have to come back to the House for parliamentary approval.
Mr. Alan Johnson (Hull, West and Hessle):
Does my right hon. Friend accept that those of us who have argued for the past seven years that it is possible for the Post Office to be given the commercial and financial freedom that it needs while remaining entirely publicly owned, this is a bit of a red letter day? I was pleased that the hon. Member for Gainsborough (Mr. Leigh) reminded us that the Conservatives were one-dimensional on the issue when they were in government: they wanted not only to privatise the Post Office but to break it up. Fortunately, they retreated from that and we are able to take the Post Office forward.
I have some concerns about the reduction in the monopoly limit. Will my right hon. Friend assure me that he will consider linking that reduced monopoly limit to the retail prices index, so that it does not just wither on the vine and erode over time? Secondly, will he ensure that there is a proper study with all interested parties before any further erosion of the reserved area that may be caused by European Union directives?
Mr. Byers:
I thank my hon. Friend for his welcome for the main thrust of the proposals in the White Paper. Given his considerable personal knowledge of the Post Office and the postal service, it is helpful for the House to have his views on the proposals. I shall consider whether the reduced monopoly limit of 50p should be linked to the RPI. I think that it would be appropriate to do so. Any study into the impact and effects of liberalisation will be the responsibility of the regulator. We believe that it is appropriate to liberalise by reducing the monopoly to 50p, given the greater commercial freedom that we are introducing. The figure is pitched at a level that will ensure that the Post Office can still meet its universal service obligation. We want to increase liberalisation, but still deliver on that important commitment.
Mr. Nicholas Winterton (Macclesfield):
In replying to my question, will the Secretary of State put spin and hype to one side? As a Back-Bench constituency Member of Parliament, I am concerned about the efficiency of the postal services and the cost and reliability of deliveries. My constituency has a large rural area, parts of which are remote. Will he guarantee to me that his proposals will ensure that all my constituents, even in the remotest areas,
Mr. Byers:
When hon. Members have had a chance to see the full range of details in the White Paper, they will see that our proposals will deliver an improved service. I can confirm that the Post Office will be legally required to guarantee, on each working day of the week, a daily delivery to every address in the country, wherever it might be. Whether it is in Macclesfield or Manchester, Newcastle or Newquay, the provision will be the same. As has been said, whether it is Skye or Southwark the same obligation will apply. That will be in law for the first time. That is a good example of how we are moving forward and improving the service provided by the Post Office.
The network of counters is a real issue in rural communities. It was highlighted earlier this week in a study by the Women's Institute. For the first time, we are providing criteria for access to the facilities of the post office network. For the first time, consumers will be able to object to, and oppose, any proposal to remove such a facility from their community. We are building in new powers.
Mr. Martin O'Neill (Ochil):
I congratulate my right hon. Friend and, in particular, my hon. Friend the Minister on their hard work over such a long time. This has been a long-awaited development, and the complexity of the deal is evident. Will the regulator be involved in the consideration of the universal service obligation and the network of post offices across the country? What is my right hon. Friend's view on public pay in the public sector? Will the pay arrangements of the Post Office be part of the new independent structure?
Mr. Byers:
I thank my hon. Friend. Much of the work of the Select Committee on Trade and Industry--of which he is Chairman--relating to the Post Office has informed the White Paper that we are presenting today. We thank him and his Committee for that work.
We are not opting for an individual to be a named regulator; we are adopting a recommendation, with which we agree, from the review of the utilities and telecommunications regulators: that it is better to have a commission of perhaps five or six people, with someone acting as its chairman. That is the way in which we intend to regulate the Post Office. The commission will be responsible for overseeing the universal service obligation and the network.
As we move to give greater commercial freedom to the Post Office, it is important that we recognise also the social obligations that go with the Post Office in Great Britain. Having a national network is one of those social obligations that we are now consolidating as a result of the measures in the White Paper.
The Post Office will still be part of the public sector pay remit. However, we have agreed with the Treasury that there will be opportunities for greater flexibility and for incentives to be offered to people working in the postal service in the new situation in the years ahead.
Mrs. Ray Michie (Argyll and Bute):
Given that there are 37 fewer sub-post offices open in Scotland now than
Mr. Byers:
The hon. Lady makes an important point. Clearly, I cannot guarantee that every post office network facility will remain in existence for the foreseeable future. However, this year, for the first time, £175 million extra has been made available to the Post Office, and that money could be used to enhance the network system. As the hon. Lady rightly said, there will be opportunities to attract people to run post offices who might not have been prepared to do so in other circumstances.
As a practical demonstration of our inclusive approach, representatives of sub-postmasters and sub-postmistresses are, for the first time, forming a working group within my Department to plan the future of the network. They are in at the ground level, and I am sure they will be arguing hard to get a better deal from the Post Office. I am pleased that, as a result of the extra £175 million this year and the £600 million over the next three years, the Post Office will now have the resources to deal with matters that are regarded as a priority.
Mrs. Maria Fyfe (Glasgow, Maryhill):
I am sure that no one disagrees with the ambition that the Post Office should be as up to date as possible and ready to enter whatever new markets it likes, but why does it have to become a public limited company to do so?
Mr. Byers:
There are several reasons. A public limited company is a business organisation that is recognised by the people who deal with these matters. It is a tried and tested model that works very well in postal services in other countries. In Sweden and Finland, the plcs in public ownership are very effective and progressive. The Swedish post office has just announced that it is to give a free e-mail address to every citizen in Sweden. The post offices in Australia and New Zealand are rapidly moving ahead, embracing new technology.
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