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Postal Services Bill [HL]

I am happy to provide the answer under this group of amendments. The Government are committed to ensuring that we have the controls over a Royal Mail company that the ownership of the majority of the shares brings. The noble Lord will be aware of the technical definition that determines control of the provision of more than half the voting shares or otherwise controlling more than half of shareholders’ voting power. Clause 12 follows the definition and ensures that the Government will have the majority of the voting rights in Royal Mail. That would include the appointment of directors, amendments to articles and the issuing of shares to the company. However, as we believe that Royal Mail’s board and management are best placed to run the company and should do so wherever possible without specific political interference, we have ensured that we have the types of controls that are essential to a shareholder. The relationship and specific rights that would be granted to a partner will be as set out in the shareholders’ agreement. My noble friend the Secretary of State has already suggested that that has not yet been negotiated and it is therefore difficult to have any specific discussion. However, it will reflect a partnership rather than a ceding of control. The Government will have greater control rights than the partner, as would be appropriate for a majority shareholder, but there will be, in key areas, shared responsibility with the partner. We also need to ensure that the partner has sufficient rights to enable it to influence the decision-making process and to deliver the transformation that is required. That is the purpose of the exercise. We expect the partner to have these shared responsibilities, particularly in operational matters, and a meaningful say in the running of the company, as has been the point of having a strategic partner.