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6.57 pm
The Parliamentary Under-Secretary of State for Trade and Industry (Nigel Griffiths): I am sorry that the Liberal Democrats have left me only three minutes to respond to the debate—[Interruption.]
Mr. Paul Tyler (North Cornwall): The Minister seems to be badly informed. The debate does not have to end at 7 pm. We hope that he will give us full answers, and then we will have a Division.
Mr. Deputy Speaker (Sir Michael Lord): Order. The hon. Gentleman is quite right. The debate does not have to conclude at 7 pm.
Nigel Griffiths: That is excellent, because it will give me the chance to tell the House about the Liberal Democrats' record, about which I shall say more in a moment.
The debate demonstrates the strength of feeling with which the Post Office and the post office network are regarded in the House and throughout the country. No one more than I appreciates the work of more than 200,000 postal staff and the many thousands of sub-postmasters and sub-postmistresses who deliver an excellent service.
I am grateful for the many constructive comments that have been made and I welcome the opportunity to respond to as many of them as possible. As everyone knows, the Post Office touches everyone's lives like no other industry in Britain. It is clear from the debate that all hon. Members want it to provide a first-class postal service and network fit for the 21st century. That is why we are delivering the investment and the reform that the business has long needed.
My hon. Friend the Member for Morecambe and Lunesdale (Geraldine Smith) made some telling points. I had the pleasure of visiting her constituency recently, so I know how in tune she is with her constituents. She asked about the 1p increase in the price of stamps. I can confirm that this week Consignia applied to raise the price of a second-class stamp from 19p to 20p and the price of a first-class stamp from 27p to 28p. That will now be considered by the regulator, and any representations that my hon. Friend or anyone else wishes to make will be taken into account. Even with that increase, the House will want to know that the cost of sending a standard letter in Britain will remain cheaper than almost anywhere else in the world. Even if we apply the proposed new first class charge of 28p—I stress that it is a proposal—it will still be cheaper than the cheapest in other EU countries. Spain charges the equivalent of 29p, and Italy—the highest—the equivalent of 97p. To put the matter in perspective, even if the proposed rise is allowed, the cost would still be reasonable. Indeed, it would be very low in European terms.
In the light of the intervention by the hon. Member for Angus (Mr. Weir), we must ask how much it would cost to send a stamp in an independent Scotland. The more important question for the Scottish National party, I suspect, is whose head would appear on the stamp. Would it be John Swinney's, or that of the hon. Member for Banff and Buchan (Mr. Salmond)? I should certainly like to be party to that internal SNP discussion.
My hon. Friend the Member for Morecambe and Lunesdale raised another serious point—the second delivery. She will know that only 4 per cent. of items are delivered by second delivery, but that they absorb 20 per cent. of costs—a fact that must be taken into account by the regulator when considering Consignia's proposals. She also raised the issue of consultation, as did several other hon. Members. In response to meetings with Members of this House, and to representations from others with an interest, the consultation period was extended by a full month, so that everyone affected could make proper representations.
My hon. Friend also raised the important question of frequency of collection. So far, the consultation has concerned itself with second delivery, rather than frequency of collection, but we regard collection as key to the future commercial success of Consignia and the
Post Office. They will want to take account of the need for a full network of uplifts to ensure that a place in the market is maintained. I urge my hon. Friend not to vote with the hon. Member for South-West Hertfordshire (Mr. Page)—who called for the immediate privatisation of the Post Office—and the Liberal Democrats. Having recently taken over Norwich city council, the Liberal Democrats have promised to privatise the housing service and the benefits service, so at a national level they would doubtless try to privatise the Post Office as well. Liberal Democrat councils are not a model of good practice in local government, but time prevents me from discussing that issue.In a witty and incisive contribution—in fact, it was one of the best speeches of this year—my hon. Friend the Member for Conwy (Mrs. Williams) put the best case yet for strengthening the Post Office's management team. I can assure her that we have done just that. My right hon. Friend the Secretary of State and my hon. Friend the Minister—[Interruption.]
Mr. Deputy Speaker: Order. Conversations are taking place throughout the Chamber—[Interruption.] Order. Hon. Members must listen to the Minister who is responding to the debate.
Nigel Griffiths: The management team has been strengthened through the appointment of Marisa Cassoni, the new financial director; David Mills, the chief executive of the network, who had a distinguished record with HSBC; and Allan Leighton, whose success in turning round and growing Asda is legendary. I hope that that reassures my hon. Friend and other hon. Members.
My hon. Friend also mentioned closures, about which every right hon. and hon. Member feels strongly. I am pleased that the rate of closure in Wales has more than halved, and that, in addition to the opening of the two branches to which reference was made, a further 169 opened in the previous financial year. As part of the Government's £2 million scheme, £7,000 has been given to Mrs. Jones to ensure the construction of a post office building and counter in Adfa, in Powys. Similar examples can be cited throughout the length and breadth of the country.
I remind the hon. Member for North Dorset (Mr. Walter), who also mentioned closures, that in 18 years of Conservative government the rate of closure was 16 a month. In his south-west region, 33 branches closed last year—equivalent to the number that closed every two months when his party were in government.
My hon. Friend the Minister for E-Commerce and Competitiveness dealt well with the other contributions that were made, and I urge the House to reject the motion.
Question put, That the original words stand part of the Question:—
The House divided: Ayes 195, Noes 307.
AYES
Ainsworth, Peter (E Surrey)
Allan, Richard
Amess, David
Ancram, Rt Hon Michael
Arbuthnot, Rt Hon James
Atkinson, Peter (Hexham)
Bacon, Richard
Baker, Norman
Baldry, Tony
Barker, Gregory
Baron, John
Barrett, John
Beith, Rt Hon A J
Bellingham, Henry
Bercow, John
Blunt, Crispin
Boswell, Tim
Bottomley, Peter (Worthing W)
Bottomley, Rt Hon Virginia
Brady, Graham
Brazier, Julian
Breed, Colin
Brooke, Mrs Annette L
Bruce, Malcolm
Burnett, John
Burns, Simon
Burstow, Paul
Burt, Alistair
Cable, Dr Vincent
Calton, Mrs Patsy
Campbell, Gregory (E Lond'y)
Campbell, Rt Hon Menzies
(NE Fife)
Carmichael, Alistair
Cash, William
Chapman, Sir Sydney
(Chipping Barnet)
Chidgey, David
Chope, Christopher
Clappison, James
Clarke, Rt Hon Kenneth
(Rushcliffe)
Clifton–Brown, Geoffrey
Collins, Tim
Conway, Derek
Cormack, Sir Patrick
Curry, Rt Hon David
Davey, Edward (Kingston)
Davies, Quentin (Grantham)
Davis, Rt Hon David (Haltemprice)
Doughty, Sue
Duncan, Alan (Rutland & Melton)
Duncan, Peter (Galloway)
Evans, Nigel
Ewing, Annabelle
Fabricant, Michael
Field, Mark (Cities of London)
Flight, Howard
Flook, Adrian
Forth, Rt Hon Eric
Foster, Don (Bath)
Fox, Dr Liam
Francois, Mark
Gale, Roger
Garnier, Edward
George, Andrew (St Ives)
Gibb, Nick
Gidley, Sandra
Gillan, Mrs Cheryl
Goodman, Paul
Gray, James
Grayling, Chris
Green, Damian (Ashford)
Green, Matthew (Ludlow)
Grieve, Dominic
Hammond, Philip
Harris, Dr Evan (Oxford W)
Harvey, Nick
Hawkins, Nick
Hayes, John
Heald, Oliver
Heath, David
Heathcoat–Amory, Rt Hon David
Hendry, Charles
Hoban, Mark
Hoey, Kate
Holmes, Paul
Horam, John
Howard, Rt Hon Michael
Hughes, Simon (Southwark N)
Hunter, Andrew
Jack, Rt Hon Michael
Jenkin, Bernard
Johnson, Boris (Henley)
Keetch, Paul
Kennedy, Rt Hon Charles
(Ross Skye & Inverness W)
Key, Robert
Kirkbride, Miss Julie
Kirkwood, Archy
Knight, Rt Hon Greg (E Yorkshire)
Laing, Mrs Eleanor
Lait, Mrs Jacqui
Lamb, Norman
Laws, David
Leigh, Edward
Letwin, Oliver
Lewis, Dr Julian (New Forest E)
Liddell–Grainger, Ian
Lidington, David
Lilley, Rt Hon Peter
Llwyd, Elfyn
Loughton, Tim
Luff, Peter
McIntosh, Miss Anne
MacKay, Rt Hon Andrew
Maclean, Rt Hon David
McLoughlin, Patrick
Malins, Humfrey
Marsden, Paul (Shrewsbury)
Mates, Michael
Mawhinney, Rt Hon Sir Brian
May, Mrs Theresa
Mitchell, Andrew (Sutton Coldfield)
Moore, Michael
Moss, Malcolm
Murrison, Dr Andrew
Norman, Archie
Oaten, Mark
O'Brien, Stephen (Eddisbury)
Öpik, Lembit
Osborne, George (Tatton)
Ottaway, Richard
Page, Richard
Paice, James
Paterson, Owen
Pickles, Eric
Price, Adam
Prisk, Mark
Pugh, Dr John
Randall, John
Redwood, Rt Hon John
Reid, Alan (Argyll & Bute)
Rendel, David
Robathan, Andrew
Robertson, Angus (Moray)
Robertson, Hugh (Faversham)
Robertson, Laurence (Tewk'b'ry)
Rosindell, Andrew
Salmond, Alex
Sanders, Adrian
Sayeed, Jonathan
Selous, Andrew
Shephard, Rt Hon Mrs Gillian
Simmonds, Mark
Simpson, Keith (Mid–Norfolk)
Smith, Geraldine (Morecambe)
Soames, Nicholas
Spelman, Mrs Caroline
Spicer, Sir Michael
Spring, Richard
Stanley, Rt Hon Sir John
Streeter, Gary
Stunell, Andrew
Swayne, Desmond
Swire, Hugo
Syms, Robert
Tapsell, Sir Peter
Taylor, Ian (Esher & Walton)
Taylor, John (Solihull)
Taylor, Matthew (Truro)
Taylor, Dr Richard (Wyre F)
Taylor, Sir Teddy
Thomas, Simon (Ceredigion)
Tonge, Dr Jenny
Trend, Michael
Turner, Andrew (Isle of Wight)
Tyler, Paul
Tyrie, Andrew
Viggers, Peter
Walter, Robert
Waterson, Nigel
Watkinson, Angela
Webb, Steve
Weir, Michael
Whittingdale, John
Widdecombe, Rt Hon Miss Ann
Wiggin, Bill
Willetts, David
Williams, Hywel (Caernarfon)
Williams, Roger (Brecon)
Willis, Phil
Wilshire, David
Winterton, Mrs Ann (Congleton)
Winterton, Nicholas (Macclesfield)
Wishart, Pete
Yeo, Tim
Young, Rt Hon Sir George
Younger–Ross, Richard
Tellers for the Ayes:
Bob Russell and
John Thurso.
NOES
Adams, Mrs Irene (Paisley N)
Ainger, Nick
Ainsworth, Bob (Cov'try NE)
Alexander, Douglas
Allen, Graham
Anderson, Rt Hon Donald
(Swansea E)
Anderson, Janet (Rossendale)
Armstrong, Rt Hon Ms Hilary
Atherton, Ms Candy
Austin, John
Bailey, Adrian
Baird, Vera
Banks, Tony
Barnes, Harry
Barron, Kevin
Battle, John
Beckett, Rt Hon Margaret
Begg, Miss Anne
Bell, Stuart
Benn, Hilary
Bennett, Andrew
Benton, Joe
Best, Harold
Blackman, Liz
Blair, Rt Hon Tony
Blears, Ms Hazel
Blizzard, Bob
Blunkett, Rt Hon David
Borrow, David
Bradley, Peter (The Wrekin)
Brennan, Kevin
Brown, Rt Hon Nicholas
(Newcastle E & Wallsend)
Brown, Russell (Dumfries)
Bryant, Chris
Buck, Ms Karen
Burgon, Colin
Burnham, Andy
Byers, Rt Hon Stephen
Cairns, David
Campbell, Alan (Tynemouth)
Campbell, Mrs Anne (C'bridge)
Campbell, Ronnie (Blyth V)
Caplin, Ivor
Caton, Martin
Cawsey, Ian
Challen, Colin
Chaytor, David
Clapham, Michael
Clark, Mrs Helen (Peterborough)
Clark, Dr Lynda
(Edinburgh Pentlands)
Clarke, Rt Hon Charles
(Norwich S)
Clarke, Rt Hon Tom (Coatbridge)
Clarke, Tony (Northampton S)
Clelland, David
Clwyd, Ann
Coaker, Vernon
Coffey, Ms Ann
Cohen, Harry
Coleman, Iain
Connarty, Michael
Cook, Rt Hon Robin (Livingston)
Cooper, Yvette
Corbyn, Jeremy
Corston, Jean
Cranston, Ross
Cruddas, Jon
Cryer, John (Hornchurch)
Cummings, John
Cunningham, Jim (Cov'try S)
Cunningham, Tony (Workington)
Curtis–Thomas, Mrs Claire
Dalyell, Tam
Davey, Valerie (Bristol W)
David, Wayne
Davidson, Ian
Davies, Geraint (Croydon C)
Davis, Rt Hon Terry
(B'ham Hodge H)
Dawson, Hilton
Dean, Mrs Janet
Denham, Rt Hon John
Dhanda, Parmjit
Dismore, Andrew
Dobson, Rt Hon Frank
Doran, Frank
Dowd, Jim
Drew, David
Drown, Ms Julia
Dunwoody, Mrs Gwyneth
Eagle, Angela (Wallasey)
Edwards, Huw
Ellman, Mrs Louise
Ennis, Jeff
Field, Rt Hon Frank (Birkenhead)
Fisher, Mark
Fitzpatrick, Jim
Flint, Caroline
Flynn, Paul
Follett, Barbara
Foster, Michael (Worcester)
Foster, Michael Jabez (Hastings)
Francis, Dr Hywel
Galloway, George
Gapes, Mike
Gardiner, Barry
Gerrard, Neil
Gibson, Dr Ian
Gilroy, Linda
Goggins, Paul
Griffiths, Jane (Reading E)
Griffiths, Nigel (Edinburgh S)
Griffiths, Win (Bridgend)
Grogan, John
Hall, Mike (Weaver Vale)
Hall, Patrick (Bedford)
Hamilton, David (Midlothian)
Hamilton, Fabian (Leeds NE)
Hanson, David
Harris, Tom (Glasgow Cathcart)
Healey, John
Henderson, Doug (Newcastle N)
Hendrick, Mark
Hepburn, Stephen
Heppell, John
Hesford, Stephen
Hewitt, Rt Hon Ms Patricia
Heyes, David
Hill, Keith
Hinchliffe, David
Hodge, Margaret
Hood, Jimmy
Hope, Phil
Hopkins, Kelvin
Howarth, George (Knowsley N)
Howells, Dr Kim
Hughes, Beverley (Stretford)
Hughes, Kevin (Doncaster N)
Humble, Mrs Joan
Hurst, Alan
Hutton, Rt Hon John
Iddon, Dr Brian
Illsley, Eric
Ingram, Rt Hon Adam
Irranca–Davies, Huw
Jackson, Helen (Hillsborough)
Jamieson, David
Jenkins, Brian
Johnson, Alan (Hull W & Hessle)
Jones, Jon Owen (Cardiff C)
Jones, Kevan (N Durham)
Jones, Lynne (Selly Oak)
Jones, Martyn (Clwyd S)
Joyce, Eric
Kaufman, Rt Hon Gerald
Keen, Alan (Feltham & Heston)
Keen, Ann (Brentford & Isleworth)
Kemp, Fraser
Khabra, Piara S
Kidney, David
King, Andy (Rugby & Kenilworth)
King, Ms Oona (Bethnal Green)
Ladyman, Dr Stephen
Lammy, David
Laxton, Bob
Lazarowicz, Mark
Lepper, David
Leslie, Christopher
Levitt, Tom
Lewis, Ivan (Bury S)
Lewis, Terry (Worsley)
Liddell, Rt Hon Mrs Helen
Lloyd, Tony
Love, Andrew
Lucas, Ian
Luke, Iain
McAvoy, Thomas
McCabe, Stephen
McCafferty, Chris
McCartney, Rt Hon Ian
MacDonald, Calum
McDonnell, John
MacDougall, John
McGuire, Mrs Anne
McIsaac, Shona
McKechin, Ann
McKenna, Rosemary
Mackinlay, Andrew
McNulty, Tony
MacShane, Denis
Mactaggart, Fiona
McWalter, Tony
McWilliam, John
Mahon, Mrs Alice
Mallaber, Judy
Mandelson, Rt Hon Peter
Mann, John
Marsden, Gordon (Blackpool S)
Marshall, David (Shettleston)
Marshall, Jim (Leicester S)
Marshall–Andrews, Robert
Martlew, Eric
Meacher, Rt Hon Michael
Michael, Rt Hon Alun
Miliband, David
Miller, Andrew
Mitchell, Austin (Gt Grimsby)
Mole, Chris
Moran, Margaret
Mountford, Kali
Mudie, George
Mullin, Chris
Munn, Ms Meg
Murphy, Denis (Wansbeck)
Murphy, Jim (Eastwood)
Murphy, Rt Hon Paul (Torfaen)
Naysmith, Dr Doug
Norris, Dan
O'Brien, Bill (Normanton)
O'Brien, Mike (N Warks)
Olner, Bill
Osborne, Sandra (Ayr)
Owen, Albert
Palmer, Dr Nick
Pearson, Ian
Picking, Anne
Pickthall, Colin
Pike, Peter
Pond, Chris
Pound, Stephen
Prentice, Ms Bridget (Lewisham E)
Prentice, Gordon (Pendle)
Primarolo, Dawn
Prosser, Gwyn
Purnell, James
Quin, Rt Hon Joyce
Quinn, Lawrie
Rammell, Bill
Raynsford, Rt Hon Nick
Reed, Andy (Loughborough)
Robinson, Geoffrey (Cov'try NW)
Roche, Mrs Barbara
Ross, Ernie
Ruddock, Joan
Ryan, Joan
Salter, Martin
Savidge, Malcolm
Sawford, Phil
Sedgemore, Brian
Shaw, Jonathan
Sheerman, Barry
Sheridan, Jim
Simon, Siôn
Simpson, Alan (Nottingham S)
Singh, Marsha
Skinner, Dennis
Smith, Rt Hon Andrew (Oxford E)
Smith, Angela (Basildon)
Smith, Jacqui (Redditch)
Smith, John (Glamorgan)
Smith, Llew (Blaenau Gwent)
Soley, Clive
Southworth, Helen
Spellar, Rt Hon John
Squire, Rachel
Starkey, Dr Phyllis
Steinberg, Gerry
Stevenson, George
Stewart, David (Inverness E)
Stinchcombe, Paul
Stoate, Dr Howard
Strang, Rt Hon Dr Gavin
Tami, Mark
Taylor, Rt Hon Ann (Dewsbury)
Taylor, Ms Dari (Stockton S)
Taylor, David (NW Leics)
Thomas, Gareth (Clwyd W)
Thomas, Gareth R (Harrow W)
Timms, Stephen
Tipping, Paddy
Todd, Mark
Touhig, Don
Trickett, Jon
Truswell, Paul
Turner, Dr Desmond (Kemptown)
Turner, Neil (Wigan)
Twigg, Derek (Halton)
Tynan, Bill
Vaz, Keith
Vis, Dr Rudi
Ward, Ms Claire
Wareing, Robert N
White, Brian
Whitehead, Dr Alan
Wicks, Malcolm
Williams, Rt Hon Alan
(Swansea W)
Williams, Mrs Betty (Conwy)
Wills, Michael
Wilson, Brian
Winnick, David
Winterton, Ms Rosie (Doncaster C)
Wood, Mike
Woodward, Shaun
Woolas, Phil
Worthington, Tony
Wray, James
Wright, David (Telford)
Wright, Tony (Cannock)
Wyatt, Derek
Tellers for the Noes:
Mr. Graham Stringer and
Mr. Gerry Sutcliffe.
Question accordingly negatived.
Question, That the proposed words be there added, put forthwith, pursuant to Standing Order No. 31 (Questions on amendments), and agreed to.
Mr. Deputy Speaker forthwith declared the main Question, as amended, to be agreed to.
- That this House applauds the Government's decision to accept all 24 of the PIU recommendations in its June 2000 report "Counter Revolution—Modernising the Post Office Network"; notes that Consignia is committed to preventing avoidable closures of rural post offices and has drawn up a code of conduct on how this is to be implemented in conjunction with the consumer watchdog, Postwatch; further applauds the decision of the Government to grant the greater commercial freedom to Consignia that management and unions had long called for; welcomes the action of the Government in appointing a new chairman of Consignia and a new chief executive of Post Office Ltd. and to enshrine in legislation the primary duty of the regulator to preserve the universal service; further applauds the commitment of the Government to a national network of post offices; and further notes the commitment by Post Office Ltd. to ensure that 95 per cent. of people in urban areas will live within a mile of a post office, and the majority within half a mile.
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