Postal Services Bill [HL]

House of Commons

Session 2008 - 09
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Postal Services Bill [HL]

Postal Services Bill [HL]
Schedule 9 — Transitional provisions for Part 3
79

immediately before the appointed day were, according to section 7A
of that Act, not outside the scope of the universal postal service in the
United Kingdom.
Provisional designation of the universal service provider
3     (1)
OFCOM may before the appointed day designate provisionally, with effect
5
from that date, the universal service provider.
      (2)
Any such provisional designation must be—
(a)
notified to the person designated,
(b)
published in such manner as OFCOM consider appropriate for
bringing it to the attention of the persons who, in their opinion, are
10
likely to be affected by it, and
(c)
notified to the European Commission.
      (3)
Whilst in force a provisional designation has the same effect as designation
under section 34.
      (4)
A provisional designation ceases to have effect on the making of the first
15
designation under that section.
Regulatory conditions applicable as from appointed day
4     (1)
OFCOM must determine before the end of the transitional period what
regulatory conditions (“initial conditions”) are to apply to postal operators
on and after the appointed day.
20
      (2)
The initial conditions applicable to—
(a)
the universal service provider, and
(b)
other postal operators,

must be to substantially the same effect as the licence conditions applying
immediately before the appointed day to the universal service provider or,
25
as the case may be, in relation to the corresponding description of operator,
except so far as it appears to OFCOM unnecessary to maintain the existing
conditions.
      (3)
The provisions of Part 3 of this Act as to what regulatory conditions may be
imposed—
30
(a)
have effect subject to sub-paragraph (2) in their application to the
imposition of initial conditions, and
(b)
do not apply in relation to the modification of initial conditions.
      (4)
If OFCOM modify the initial conditions, they may not impose any
conditions that could not have been imposed under Part 2 of the Postal
35
Services Act 2000.
      (5)
The provisions of Part 3 of this Act about—
(a)
the procedure for imposing, modifying or revoking regulatory
conditions, and
(b)
appeals against price control decisions,
40

apply to initial conditions as to other regulatory conditions.
Power to extend operation of time-limited licence condition
5     (1)
If it appears to the Secretary of State—

Postal Services Bill [HL]
Schedule 9 — Transitional provisions for Part 3
80

(a)
that a licence condition applicable before the appointed day to the
universal service provider depends for its continuing operation on
forecast figures indicating the volume of business in future periods
(“index years”) set out in the condition, and
(b)
that the index years and forecast figures set out in the condition do
5
not extend beyond the index year ending 31st March 2010,

the Secretary of State may by order amend that condition so as to specify a
forecast figure for the index year ending 31st March 2011.
      (2)
The power of the Secretary of State is limited to inserting a forecast figure
produced by applying the same methods as were used by the Postal Services
10
Commission to determine the forecast figure for the index years presently
set out in the condition.
      (3)
If it appears to the Secretary of State that the Postal Services Commission has
produced, using those methods, a forecast figure for the index year ending
31st March 2011, the Secretary of State may adopt the Commission’s figure
15
and need not repeat, or examine the basis of, the work done by the
Commission in producing that figure.
      (4)
Before making an order under this paragraph the Secretary of State must—
(a)
consult the universal service provider and such other persons as the
Secretary of State considers appropriate, and
20
(b)
consider any representations made before the end of the consultation
period.

The consultation period, in relation to a person, is the period of 21 days
beginning with the day on which that person is consulted.
      (5)
The requirements of sub-paragraph (4) may be met by consultation and
25
consideration before the passing of this Act.
      (6)
If an order under this paragraph is made before the appointed day, the
reference in paragraph 4(2) to the licence conditions applicable immediately
before that day is to be read accordingly as a reference to the conditions as
amended by the order.
30
Anticipatory exercise of powers
6     (1)
During the transitional period the provisions of Part 3 of this Act relating
to—
(a)
the making of the universal postal service order,
(b)
the designation of the universal service provider, and
35
(c)
the imposition of conditions on postal operators,

have effect so far as necessary to enable OFCOM to undertake work with a
view to making an order or designation, or imposing conditions, under that
Part as soon as practicable on or after the appointed day.
      (2)
The work referred to in sub-paragraph (1) includes, in particular—
40
(a)
the assessment required by section 32(2) of the extent to which the
market for the provision of postal services in the United Kingdom is
meeting the reasonable needs of the users of the those services, and
(b)
consultation with existing licensed operators and others in
connection with that assessment.
45

Postal Services Bill [HL]
Schedule 10 — Minor and consequential amendments and repeals
Part 1 — Amendments of the Postal Services Act 2000 (c. 26)
81

7
The provisions of Part 3 of this Act also come into force at the beginning of
the transitional period so far as necessary to enable the making of any
regulations, order or scheme by OFCOM or the Secretary of State.
8     (1)
The provisions of section 54 and Schedule 8 (information) have effect during
the transitional period so far as necessary for the purposes of the carrying
5
out by OFCOM of their functions during or after that period.
      (2)
The provisions of section 55 (general restriction on disclosure of
information) have effect accordingly.
Consultation on exercise of existing regulatory functions
9
During the transitional period the Postal Services Commission must consult
10
OFCOM before taking any step with a view to modifying or revoking the
conditions of a licence under Part 2 of the Postal Services Act 2000 (c. 26).
References to universal service provider
10
References in this Schedule to the universal service provider, in relation to
periods before the appointed day, are to the operator whose identity is for
15
the time being notified to the European Commission as being the provider
of a universal postal service in the United Kingdom.
Saving
11
Nothing in this Schedule is to be read as impliedly restricting the generality
of the power to make transitional provision by order under section 64(4).
20
Schedule 10
Section 63

Minor and consequential amendments and repeals
Part 1
Amendments of the Postal Services Act 2000 (c. 26)
1
The Postal Services Act 2000 is amended as follows.
25
2
Omit sections 1 and 3 to 5 (introductory).
3
Omit sections 6 to 41 (licences for postal services).
4
Omit sections 42 to 50 (the Postal Services Commission).
5
Omit sections 60 to 61A (the Postal Services Commission and the Council).
6
In section 62 (transfer of property etc to nominated company), omit
30
subsections (1) to (5), (7) and (8).
7
Omit sections 63 to 67 (reorganisation of the Post Office).
8     (1)
Section 68 (loans by the Secretary of State to the Post Office company etc) is
amended as follows.

Postal Services Bill [HL]
Schedule 10 — Minor and consequential amendments and repeals
Part 1 — Amendments of the Postal Services Act 2000 (c. 26)
82

      (2)
In the title, for “the Post Office company and its subsidiaries” substitute
“relevant companies”.
      (3)
In subsection (1), for “the Post Office company or any of its subsidiaries”
substitute “a relevant company”.
      (4)
After that subsection insert—
5
“(1A)
In this Part “relevant company” means—
(a)
a Post Office company,
(b)
a Royal Mail company, or
(c)
a company in the same group as a company within
paragraph (a) or (b).”
10
9     (1)
Section 69 (guarantees by the Secretary of State for the Post Office company
etc) is amended as follows.
      (2)
In the title, for “the Post Office company and its subsidiaries” substitute
“relevant companies”.
      (3)
In subsection (1), for “the Post Office company or any of its subsidiaries”
15
substitute “a relevant company”.
      (4)
In subsection (3), for “the Post Office company or the subsidiary concerned”
substitute “the relevant company”.
10    (1)
Section 70 (extinguishment of certain liabilities) is amended as follows.
      (2)
In subsections (1) and (2), for “the Post Office company or of any of its
20
subsidiaries” substitute “a relevant company”.
      (3)
For subsections (3) and (4) substitute—
“(3)
Before exercising a power under subsection (1) or (2), the Secretary
of State must consult—
(a)
the relevant company, and
25
(b)
if the relevant company has one or more parent companies,
the parent company that does not itself have a parent
company.”
11
In section 71(1) and (2) (limit on loans and other arrangements with
government), for “the Post Office company and any of its subsidiaries”
30
substitute “relevant companies”.
12    (1)
Section 72 (reserves of the Post Office company and its subsidiaries) is
amended as follows.
      (2)
In the title, for “the Post Office company and its subsidiaries” substitute
“relevant companies”.
35
      (3)
In subsection (1)—
(a)
for “the Post Office company”, in the first place it occurs, substitute
“a relevant company that does not have a parent company (“the
relevant company”)”;
(b)
in paragraphs (a), (b) and (c), for “the Post Office company”
40
substitute “the relevant company”.

Postal Services Bill [HL]
Schedule 10 — Minor and consequential amendments and repeals
Part 1 — Amendments of the Postal Services Act 2000 (c. 26)
83

      (4)
For subsection (6) substitute—
“(5A)
No direction under this section may be given to, or in respect of, a
company that is not owned in its entirety by the Crown.
(6)
Before giving a direction under this section to a company, the
Secretary of State must consult the company.”
5
13
In section 73 (statutory accounts of the Post Office company), for “the Post
Office company” (in each place) substitute “the original holding company”.
14    (1)
Section 74 (further provisions relating to the capital structure of the Post
Office company) is amended as follows.
      (2)
In the title, for “the Post Office company” substitute “certain relevant
10
companies”.
      (3)
In subsection (1), for “the Post Office company” substitute “a relevant
company within subsection (1A)”.
      (4)
After that subsection insert—
“(1A)
A relevant company is within this subsection if—
15
(a)
it is owned in its entirety by the Crown, and
(b)
it does not have a parent company.”
      (5)
In subsection (3)—
(a)
for “The Post Office company” substitute “A relevant company
within subsection (1A)”;
20
(b)
at the end insert “(or their nominees)”.
      (6)
In subsection (5), for “section 63” substitute “section 5 of the Postal Services
Act 2009”.
      (7)
In subsection (7)(b), for “the Post Office company” substitute “the relevant
company”.
25
15
Omit section 75 (dissolution of the Post Office).
16    (1)
Section 77 (publicity requirements for certain accounts and reports of the
Post Office company) is amended as follows.
      (2)
In the title, omit “of the Post Office company”.
      (3)
In subsections (1) and (2), for “The Post Office company” substitute “A
30
company to which this section applies”.
      (4)
After subsection (3) insert—
“(3A)
This section applies to the following companies—
(a)
the original holding company;
(b)
a Post Office company;
35
(c)
a Royal Mail company.”
17    (1)
Section 78 (information requirements on the Post Office company) is
amended as follows.
      (2)
In the title, for “the Post Office company” substitute “certain relevant
companies”.
40

Postal Services Bill [HL]
Schedule 10 — Minor and consequential amendments and repeals
Part 1 — Amendments of the Postal Services Act 2000 (c. 26)
84

      (3)
In subsection (1), for “, on or after the appointed day, serve notice on the Post
Office company” substitute “serve notice on a relevant company that does
not have a parent company”.
18
Omit section 79 (exercise of functions through nominees).
19
In section 80(1) (shadow directors), for “the Post Office company” substitute
5
“a relevant company”.
20
In section 82(1) (interpretation of Part 4)—
(a)
after the definition of “the appointed day” insert—
““company” includes any body corporate,”;
(b)
for the definitions of “the Post Office company” and “relevant
10
subsidiary” substitute—
“any reference to a company being in the same “group”
as another company is to be read in accordance with
section 1161(5) of the Companies Act 2006,
“the original holding company” has the meaning given
15
by section 17 of the Postal Services Act 2009,
“owned in its entirety by the Crown”, in relation to a
company, has the meaning given by section 10 of that
Act,
any reference to a company being a “parent” of another
20
company is to be read in accordance with section 1162
of the Companies Act 2006,
“Post Office company” has the meaning given by section
2 of the Postal Services Act 2009,
“relevant company” has the meaning given by section
25
68(1A) of this Act,
“Royal Mail company” has the meaning given by section
4 of the Postal Services Act 2009,”;
(c)
omit the definition of “share rights”;
(d)
omit the definition of “wholly owned by the Crown”.
30
21
For the title of Part 6 substitute “Postal services: supplementary”.
22    (1)
Section 89 (schemes as to terms and conditions for provision of a universal
postal service) is amended as follows.
      (2)
In the title, for “a universal postal service” substitute “postal services”.
      (3)
For subsection (1) substitute—
35
“(1)
A postal operator may make a scheme under this section in relation
to any or all of the postal services provided by the operator.”
      (4)
In subsection (2)—
(a)
at the end of paragraph (a), insert “and”;
(b)
omit paragraph (c) (together with the “and” immediately before it).
40
      (5)
In subsections (3)(a), (4)(a) and (7), for “the universal service provider
concerned” substitute “the postal operator”.

Postal Services Bill [HL]
Schedule 10 — Minor and consequential amendments and repeals
Part 1 — Amendments of the Postal Services Act 2000 (c. 26)
85

23
After section 89 insert—
“89A
Powers of OFCOM in relation to schemes
(1)
A postal operator may not make a scheme under section 89 unless—
(a)
the operator has notified OFCOM of the scheme that the
operator is proposing to make, and
5
(b)
the operator has carried out a consultation exercise in relation
to the proposed scheme in accordance with requirements
contained in a notification published by OFCOM.
(2)
OFCOM may give a direction to a postal operator who has notified a
scheme to them under subsection (1)(a) requiring the operator to
10
make such modifications of the scheme as are specified in the
direction.
(3)
Before giving a direction under subsection (2), OFCOM must publish
a notification—
(a)
setting out the terms of the scheme that the operator proposes
15
to make,
(b)
stating that OFCOM are proposing to give a direction under
subsection (2) modifying the scheme,
(c)
setting out the effect of the proposed modification,
(d)
giving reasons for making the proposed modification, and
20
(e)
specifying the period within which representations may be
made to them about the proposed modification.
(4)
The specified period must be at least one month beginning with the
day after the day the notification under subsection (3) is published.
(5)
OFCOM may not give a direction under subsection (2) unless they
25
have considered every representation and proposal made to them
during the period specified in that notification.
(6)
If the scheme is not in force at the time at which that notification is
published, the operator may not bring the scheme into force until
such time as OFCOM may direct.
30
(7)
OFCOM must publish a notification of any direction that they make
under subsection (2).
(8)
The publication of a notification under this section must be in such
manner as OFCOM consider appropriate for bringing its contents to
the attention of such persons as they consider appropriate.
35
(9)
An obligation imposed on a postal operator by a direction under
subsection (2) is enforceable by OFCOM under Schedule 7 to the
Postal Services Act 2009 (enforcement of regulatory requirements).”
24    (1)
Section 90 (exclusion of liability) is amended as follows.
      (2)
Before subsection (1) insert—
40
“(A1)
This section applies in relation to—
(a)
the provision by the universal service provider of a universal
postal service, and