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Postal Services Bill [HL]

My amendment is prompted by concerns that the reorganisation envisaged by the Bill will lead to a weakening of the relationship between the Royal Mail Group and Post Office Limited. As many noble Lords will know, the current relationship is not just helpful but absolutely critical for the post office network. In fact, neither can exist without the other; that would be unthinkable. Neither organisation can flourish if the other is failing. Nor can one ever leech off the other. This relationship must be about symbiosis, partnership and balance. The inter-business agreement to handle Royal Mail letters provides one-third of the income of post offices. If this reorganisation fractures or even damages that relationship, we will undoubtedly have another round of closures very soon. I say that against the background of the Secretary of State assuring us that no closure will take place, which was surprising but very welcome indeed. However, I still await an answer to Amendment 14. Of course, I recognise that there is no reason why closures should take place. As I understand it, the Bill would open up the possibility for post offices to generate revenue from contracts with private postal service providers in addition to maintaining the existing agreement with Royal Mail. Post offices still offer a unique physical network. Despite the many closures that have taken place, post offices continue to provide customer access throughout the United Kingdom. That potential should be exploited to the full. However, there is naturally some concern that reorganisation will undermine the security provided by what is, as I understand it, £356 million a year from Royal Mail. A neat diagram was helpfully sent out from the department yesterday which shows a continuing commercial relationship being maintained between the two. I look to the Minister to give us some more detail as to whether the Government expect this commercial relationship to be different from the current inter-company agreement and, if so, in what respect or respects. Has there been any discussion about whether the privatisation deal will contain any assurances about the renewal of the contract on current terms? There are concerns among stakeholders, which have been expressed to a number of noble Lords, that greater mechanisation will reduce the amount of sorting work that Royal Mail pays post offices to do for it, particularly in rural areas. There is also concern that the end of the exclusive relationship between the two companies and the introduction of possibly unsupportive private management will lead to a reduction of the flat-rate payment that is presently made. These concerns are not necessarily well founded. Better regulation, the lifting of the burden of the pension deficit and improved exploitation of growing markets such as parcels could all benefit post offices as much as they will help Royal Mail, but this cannot be known for sure. My amendment therefore seeks to ensure that proper thought is put into assessing the risks, possibilities and opportunities. If it is shown that the relationship will be put in genuine danger, steps can and should be taken to protect it before thousands more post offices are threatened with closure. I hope that we shall hear a positive response to these questions from the Minister. I beg to move.