Postal Services Bill

House of Commons

Session 2010 - 11
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Postal Services Bill

Postal Services Bill
Part 4 — Special administration regime
45

(5)
In this section “a resolution for voluntary winding up” has the same meaning
as in the 1986 Act.
74
Making of ordinary administration orders
(1)
This section applies if a person other than the Secretary of State makes an
ordinary administration application in relation to a company which is a
5
universal service provider.
(2)
The court must dismiss the application if—
(a)
a postal administration order is in force in relation to the company, or
(b)
a postal administration order has been made in relation to the company
but is not yet in force.
10
(3)
If subsection (2) does not apply, the court, on hearing the application, must not
exercise its powers under paragraph 13 of Schedule B1 to the 1986 Act (other
than its power of adjournment) unless—
(a)
notice of the application has been served on the Secretary of State and
OFCOM,
15
(b)
a period of at least 14 days has elapsed since the service of the last of
those notices to be served, and
(c)
there is no application for a postal administration order which is
outstanding.
(4)
Paragraph 44 of Schedule B1 to the 1986 Act (interim moratorium) does not
20
prevent, or require the permission of the court for, the making of an application
for a postal administration order.
(5)
On the making of a postal administration order in relation to a company, the
court must dismiss any ordinary administration application made in relation
to the company which is outstanding.
25
(6)
In this section “ordinary administration application” means an application in
accordance with paragraph 12 of Schedule B1 to the 1986 Act.
75
Administrator appointments by creditors etc
(1)
Subsections (2) to (4) make provision about appointments under paragraph 14
or 22 of Schedule B1 to the 1986 Act (powers to appoint administrators) in
30
relation to a company which is a universal service provider.
(2)
If in any case—
(a)
a postal administration order is in force in relation to the company,
(b)
a postal administration order has been made in relation to the company
but is not yet in force, or
35
(c)
an application for a postal administration order in relation to the
company is outstanding,

a person may not take any step to make an appointment.
(3)
In any other case, an appointment takes effect only if each of the following
conditions are met.
40
(4)
The conditions are—
(a)
that a copy of every document in relation to the appointment that is
filed or lodged with the court in accordance with paragraph 18 or 29 of

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Schedule B1 to the 1986 Act has been served on the Secretary of State
and OFCOM,
(b)
that a period of 14 days has elapsed since the service of the last of those
copies to be served,
(c)
that there is no outstanding application to the court for a postal
5
administration order in relation to the company, and
(d)
that the making of an application for a postal administration order in
relation to the company has not resulted in the making of a postal
administration order which is in force or is still to come into force.
(5)
Paragraph 44 of Schedule B1 to the 1986 Act (interim moratorium) does not
10
prevent, or require the permission of the court for, the making of an application
for a postal administration order at any time before the appointment takes
effect.
76
Enforcement of security
(1)
A person may not take any step to enforce a security over property of a
15
company which is a universal service provider unless—
(a)
notice of the intention to do so has been served on the Secretary of State
and OFCOM, and
(b)
a period of at least 14 days has elapsed since the service of the last of
those notices to be served.
20
(2)
In the case of a foreign company which is a universal service provider, the
reference to the property of the company is to its property in the United
Kingdom.
Financial support for companies in administration
77
Grants and loans
25
(1)
This section applies if a postal administration order has been made in relation
to a company.
(2)
The Secretary of State may, with the consent of the Treasury, make grants or
loans to the company of such amounts as it appears to the Secretary of State
appropriate for achieving the objective of the postal administration.
30
(3)
The grants or loans may be made in whatever manner, and on whatever terms,
the Secretary of State considers appropriate.
(4)
The terms on which the grants may be made include, in particular, terms
requiring the whole or a part of the grants to be repaid to the Secretary of State
if there is a contravention of the other terms on which they are made.
35
(5)
The terms on which loans may be made include, in particular, terms
requiring—
(a)
the loans to be repaid at such times and by such methods as the
Secretary of State may, with the consent of the Treasury, from time to
time direct, and
40
(b)
interest to be paid on the loans at such rates and at such times as the
Secretary of State may, with the consent of the Treasury, from time to
time direct.

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(6)
The Secretary of State must pay sums received as a result of this section into the
Consolidated Fund.
78
Indemnities
(1)
This section applies if a postal administration order has been made in relation
to a company.
5
(2)
The Secretary of State may, with the consent of the Treasury, agree to
indemnify persons in respect of one or both of the following—
(a)
liabilities incurred in connection with the exercise and performance of
powers and duties by the postal administrator, and
(b)
loss or damage sustained in that connection.
10
(3)
The agreement may be made in whatever manner, and on whatever terms, the
Secretary of State considers appropriate.
(4)
If sums are paid by the Secretary of State in consequence of an indemnity
agreed to under this section, the company must pay the Secretary of State—
(a)
such amounts in or towards the repayment to the Secretary of State of
15
those sums as the Secretary of State may, with the consent of the
Treasury, direct, and
(b)
interest on amounts outstanding under this subsection at such rates as
the Secretary of State may, with the consent of the Treasury, direct.
(5)
The payments must be made by the company at such times and in such manner
20
as the Secretary of State may, with the consent of the Treasury, determine.
(6)
Subsection (4) does not apply in the case of a sum paid by the Secretary of State
for indemnifying a person in respect of a liability to the company.
(7)
The power of the Secretary of State to agree to indemnify persons—
(a)
is confined to a power to agree to indemnify persons in respect of
25
liabilities, loss and damage incurred or sustained by them as relevant
persons, but
(b)
includes power to agree to indemnify persons (whether or not they are
identified or identifiable at the time of the agreement) who
subsequently become relevant persons.
30
(8)
The following are relevant persons for the purposes of this section—
(a)
the postal administrator,
(b)
an employee of the postal administrator,
(c)
a partner or employee of a firm of which the postal administrator is a
partner,
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(d)
a partner or employee of a firm of which the postal administrator is an
employee,
(e)
a partner of a firm of which the postal administrator was an employee
or partner at a time when the order was in force,
(f)
a body corporate which is the employer of the postal administrator,
40
(g)
an officer, employee or member of such a body corporate, and
(h)
a Scottish firm which is the employer of the postal administrator or of
which the postal administrator is a partner.
(9)
For the purposes of subsection (8)—

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(a)
references to the postal administrator are to be read, where two or more
persons are appointed as the postal administrator, as references to any
one or more of them, and
(b)
references to a firm of which a person was a partner or employee at a
particular time include a firm which holds itself out to be the successor
5
of a firm of which the person was a partner or employee at that time.
(10)
The Secretary of State must pay sums received as a result of subsection (4) into
the Consolidated Fund.
79
Guarantees where postal administration order is made
(1)
This section applies if a postal administration order has been made in relation
10
to a company.
(2)
The Secretary of State may, with the consent of the Treasury, guarantee—
(a)
the repayment of any sum borrowed by the company while that order
is in force,
(b)
the payment of interest on any sum borrowed by the company while
15
that order is in force, and
(c)
the discharge of any other financial obligation of the company in
connection with the borrowing of any sum while that order is in force.
(3)
The Secretary of State may give the guarantees in such manner, and on such
terms, as the Secretary of State thinks fit.
20
(4)
As soon as practicable after giving a guarantee under this section, the Secretary
of State must lay a statement of the guarantee before Parliament.
(5)
If sums are paid out by the Secretary of State under a guarantee given under
this section, the company must pay the Secretary of State—
(a)
such amounts in or towards the repayment to the Secretary of State of
25
those sums as the Secretary of State may, with the consent of the
Treasury, direct, and
(b)
interest on amounts outstanding under this subsection at such rates as
the Secretary of State may, with the consent of the Treasury, direct.
(6)
The payments must be made by the company at such times, and in such
30
manner, as the Secretary of State may, with the consent of the Treasury, from
time to time direct.
(7)
If a sum has been paid out under a guarantee given under this section, the
Secretary of State must lay a statement relating to that sum before Parliament—
(a)
as soon as practicable after the end of the financial year in which the
35
sum is paid out, and
(b)
as soon as practicable after the end of each subsequent financial year in
relation to which the repayment condition has not been met.
(8)
The repayment condition is met in relation to a financial year if—
(a)
the whole of the sum has been repaid to the Secretary of State before the
40
beginning of the year, and
(b)
the company was not at any time during the year liable to pay interest
on amounts that became due in respect of the sum.
(9)
The Secretary of State must pay sums received as a result of subsection (5) into
the Consolidated Fund.
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(10)
In this section “financial year” means a period of 12 months ending with 31
March.
Modifications of regulatory conditions etc
80
Regulatory powers exercisable during postal administration
(1)
This section applies if a postal administration order has been made.
5
(2)
The Secretary of State may by order modify the universal postal service order
made by OFCOM under section 29.
(3)
Before modifying that order, the Secretary of State must consult—
(a)
OFCOM, and
(b)
such other persons as the Secretary of State considers appropriate.
10
(4)
If the Secretary of State modifies that order, it is for the Secretary of State
(rather than OFCOM) to notify the European Commission of the modification.
(5)
The Secretary of State may by order amend section 30.
(6)
An order under subsection (5)—
(a)
is subject to approval after being made, and
15
(b)
may include such amendments of Part 3 as the Secretary of State
considers necessary or expedient in consequence of any provision
made by the order.
(7)
The Secretary of State may modify or revoke any regulatory condition if the
Secretary of State considers it appropriate to do so for, or in connection with,
20
achieving the objective of the postal administration.
(8)
The Secretary of State’s power to make modifications includes power to make
incidental, supplementary, consequential, transitional or transitory
modifications.
(9)
Before modifying or revoking a regulatory condition, the Secretary of State
25
must consult—
(a)
OFCOM,
(b)
the person whose condition is being modified or revoked, and
(c)
such other persons as the Secretary of State considers appropriate.
(10)
The Secretary of State must publish every modification or revocation of a
30
regulatory condition made under this section.
(11)
The publication must be in such manner as the Secretary of State considers
appropriate.
(12)
The provisions of Part 3 (including section 28) other than—
(a)
sections 55 to 58 (appeals), and
35
(b)
paragraph 3 of Schedule 6 (procedure for modifying or revoking
regulatory conditions),

apply in relation to the modification or revocation by the Secretary of State of
regulatory conditions as they apply in relation to the modification or
revocation by OFCOM of regulatory conditions.
40
(13)
The power conferred by subsection (2) or (5) may not be exercised at any time
after the postal administration order has ceased to be in force.

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(14)
Any duty to consult under this section may be met by consultation before the
making of the postal administration order.
81
Regulatory conditions to secure funding of postal administration order
(1)
The modifications that may be made under section 80 include, in particular,
modifications of any price control provision contained in a regulatory
5
condition for the purpose of raising such amounts as may be determined by the
Secretary of State.
(2)
The modified condition may require the person on whom it is imposed to pay
those amounts to such persons as may be so determined for the purpose of—
(a)
their applying those amounts in making good any shortfall in the
10
property available for meeting the expenses of the postal
administration, or
(b)
enabling those persons to secure that those amounts are so applied.
(3)
The modified condition may require the person on whom it is imposed to
apply amounts paid to it as result of this section in making good any shortfall
15
in the property available for meeting the expenses of the postal administration.
(4)
For the purposes of this section “price control provision” means—
(a)
provision as to the tariffs that are to be used as mentioned in section
35(4) (designated USP condition: tariffs), or
(b)
provision as to prices that may be charged for the giving of access
20
under an access condition (within the meaning of Part 3).
(5)
For the purposes of this section—
(a)
there is a shortfall in the property available for meeting the costs of a
postal administration if the property available (apart from this section)
for meeting relevant debts is insufficient for meeting them, and
25
(b)
amounts are applied in making good that shortfall if they are paid in or
towards discharging so much of a relevant debt as cannot be met out of
the property otherwise available for meeting relevant debts.
(6)
In this section “relevant debt”, in relation to a case in which a company is or has
been subject to a postal administration order, means an obligation—
30
(a)
to make payments in respect of the expenses or remuneration of any
person as the postal administrator of the company,
(b)
to make a payment in discharge of a debt or other liability of the
company arising out of a contract entered into at a time when the order
was in force by the person who at that time was the postal
35
administrator of the company,
(c)
to repay the whole or a part of a grant made to the company under
section 77,
(d)
to repay a loan made to the company under section 77 or to pay interest
on such a loan,
40
(e)
to make a payment under section 78(4), or
(f)
to make a payment under section 79(5).