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Proceeding contribution from Lord Hunt of Wirral (Conservative) in the House of Lords on Tuesday, 24 March 2009. It occurred during Committee of the Whole House (HL) and Debate on bill on Postal Services Bill [HL].


Postal Services Bill [HL]

There is so much wrong with that question. First, let us look forward and not back. But in looking back, let us see where 40 per cent of the closures occurred. The noble Lord may want to play general election games—I suppose there has to be an election in the next 12 months—but let us now work out and hear his ideas on how to ensure that these closures no longer take place. I certainly will give some examples to the noble Lord, and to other noble Lords, about how we can at least do something constructive in this Bill. As I was about to say, Amendment 14 in my name, seeks to explore what the relationship between Royal Mail Group Limited and Post Office Limited will look like after part privatisation. We also have an amendment from the Benches to my right on the board of directors and, to be debated much later in these proceedings, on the question of an investment fund. I look forward very much to those debates. I hope that we will get some idea of the Government’s thinking in this area. My amendments in this group focus in a slightly different direction. We on these Benches strongly believe that this Bill should have come many years ago. We also feel that the Bill was produced in a rather unhelpful rush. These views—I recall the Secretary of State said this at Second Reading—are not mutually inconsistent. Proper analysis of the problems and proper consultation on the possible solutions, and proper pre-legislative scrutiny, should all have their place in the process of producing a Bill, particularly one as contentious as this. I hope that my amendments will encourage the Government to start the process as soon as possible, before it is too late. Amendment 1 states: ""Within one year of an order being made under section 2, a post office company must review the services a post office may provide to the public under arrangements with a government department"." The Secretary of State must lay the review and the Government response before both Houses of Parliament as soon as reasonably possible. Amendment 2 would insert a new clause relating to the Post Office company report. That is because the Government have on every occasion when closure has been discussed said, "It is not for Parliament to have a view about this closure or that". I hope that these two amendments will ensure that that does not happen any more. Amendment 2 embodies an attempt to ensure that a proper analysis is undertaken of why post offices around the country are closing, not only putting people out of jobs, but also causing many villages and areas to lose a vital centre of their community. Amendment 1 seeks to ensure proper consideration of what more could be done to support post offices. I recall that the noble Lord, Lord Whitty, said at Second Reading that government departments should look at what services they could deliver through the post office network. He is right. We were extremely pleased that outside campaigners, and MPs and noble Lords from all sides, were able to persuade the Minister to reaward the Post Office card account to the Post Office. However, I felt and I still feel that the handling of these matters by the Government was a disgrace. Such a destabilising retendering process should never have been forced on the Post Office network. Cancelling it midway smacked of panic—and pretty expensive panic too. There are a number of other services we feel the Post Office could provide. Our amendment would seek to ensure that the establishment of a post bank, in particular, to take one example, is properly explored. I look forward to hearing what the Secretary of State has to say about that. I think we all were very impressed indeed with the documentation launched about the post bank. The documentation, Post Bank at the people’s Post Office, makes the case for a post bank, and the comment was made, quite rightly, that the Post Office network is a unique national resource. Communities, businesses and individuals all depend on it. That raises the idea that as well as the universal service obligation, we should have a universal banking obligation. I look forward to hearing from the Secretary of State what he is going to do about all this, because there have been hints in the press about how other services could be provided. We want to know what is going on and what could be included. Not only do we want the idea of the post bank to be explored, but also its feasibility based on evidential grounds. The noble Lord, Lord Razzall, quite rightly raised the issue of private mail expansion in this area and many others that could be looked at, such as the provision of expert advice on pension entitlements or tax returns. None of this must be rushed into. I participated in many of the debates on the setting up of the Financial Services Authority, and as noble Lords know, financial services are very heavily regulated. It would therefore be helpful if the Secretary of State could give us an idea of exactly what he has in mind. The drafting also discloses that we are providing for reviews to be undertaken by Post Office Limited. I would prefer to see a more independent review, particularly on the consideration of future services, but that is another matter. The Hooper review caused a great deal of contention, although we have had some helpful evidence from the Communication Workers Union that reflects the extent to which it agrees with certain parts of it. However, in his excellent report, Richard Hooper has finally made it impossible for the Government to sweep all these structural problems under the carpet. Post offices would also benefit from an equally rigorous analysis. In looking forward to the Secretary of State’s response, I beg to move.


Secondary information

Type
Proceeding contribution
Reference
709 c558-60 
Session
2008-09
Chamber / Committee
House of Lords chamber
Subjects
Conditions of employment Directors Bank services Industrial relations Finance Governing bodies Income Government assistance Government shareholding Private sector Public appointments Property transfer Public consultation Staff Post offices Postal services Ofcom Post Office Stocks and shares Royal Mail Reorganisation Postal Services Sector Review Employee ownership
Legislation
Postal Services Bill (HL) 2008-09
Link
View this Proceeding contribution on www.publications.parliament.uk