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Banking Bill

My Lords, I am grateful to noble Lords who have spoken, and I am particularly pleased that my noble friend Lord Hoyle had support in the debate. I know that two noble Lords who would have spoken had trouble getting here, due to the weather, otherwise my noble friend would have found considerable support from our Back Benches. I appreciate the fact that my noble friend Lord Wedderburn committed himself in support of a sustainable Post Office operation. That is exactly what the Government want. We have taken a number of actions to support that goal. Over the past few years, we have worked with the major high-street banks to ensure that a wide range of banking facilities is accessible through Post Office branches. The most recent FSA guide indicates that 17 providers’ basic bank accounts can be accessed at the Post Office. In addition, current accounts from a number of building societies and banks are accessible at the Post Office. Furthermore, the Post Office has its own brand of banking services. Again, I hear what the noble Lord, Lord Oakeshott, has said; he made that point last week in Committee and he has made it again. I know it is a serious point, which we will of course take on board. However, he will also appreciate that at present the Post Office is able to offer its own-brand banking services, operated via a joint venture with the Bank of Ireland. That has been a considerably successful activity in those terms. The noble Lord, Lord Oakeshott, issued a warning which the Government will take seriously, and I assure him that at this stage the Government do not share his profound anxieties about the position regarding the Bank of Ireland, although I take note of the pointers that he indicated. The Post Office continues to deliver a number of government services. For instance, last year the Department for Work and Pensions renewed the contract with the Post Office to deliver benefit payments through an enhanced Post Office card account. My noble friend Lord Hoyle said that that was too limited in its operation. There are ways in which extension could occur and we will certainly look at them. I will mention also that, in the Pre-Budget Report last year, we announced that the Post Office would provide the savings gateway account programme to encourage saving for people on benefits. As my noble friend rightly said in his opening speech, the Post Office reaches parts that other banks have difficulty in reaching. It is a people’s service for many who otherwise would not conceive of themselves as able to open a bank account. It is all the more meritorious for that. The Post Office also provides a child trust fund, a Christmas club and savings stamps. The noble Lord, Lord Oakeshott, correctly observed that my noble friend Lord Mandelson was here with us for a short period this evening. I think that he was aware that this issue was coming up. Of course it is the case that he has deliberately indicated the extent to which he wants to look progressively and positively at opportunities for the Post Office. Often, one looks with a shudder on Report stage, when it falls so quickly after Committee, because one has nothing fresh to say about amendments that have remarkable similarity to those in the debates of the preceding week. However, I am blessed this evening, because whereas I might only have been able to reiterate the potentialities of the Post Office that I identified last week when I had to reply in the debate, I am instead able to give much clearer assertions of the Government’s intention to enhance the role of the Post Office. The noble Lord said that he wanted to see a stronger role for the Post Office, and this is something that we are working on. My noble friend, who always keeps a close eye on parliamentary procedures, will also know that the Select Committee on the department in the other place has been enjoined with the task of looking at the opportunities that the Post Office could develop. Those two important developments give a clear earnest of the Government’s intent to respond to the motivation behind this amendment. I am very glad that my noble friend raised the issue this evening. It is a very important debate and there will be other opportunities when undoubtedly it will be taken forward. In the mean time, I hope that I have given a sufficiently positive reply for him to withdraw the amendment.