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Postal Services Bill [HL]

This is a very simple probing amendment on the impact of the privatisation on the subsidiary companies that will remain under Royal Mail Group Ltd. Clauses 5 and 6 deal with the transfer of securities from the various companies to and from the Government and presumably, therefore, to and from each other as well. The diagram I referred to earlier which was so helpfully sent out by the department shows no sign of any change in those subsidiary companies. What transfer of securities does the Minister imagine might be necessary? That is really my main question. One of the concerns that many have about the government method of privatisation is that they will happily sell off control of the most profitable part of Royal Mail’s business—possibly parcels—leaving the rest of its business to continue in its current unsatisfactory way. These clauses appear to make that concern a very real possibility. Therefore, I look forward to hearing what the Government intend to do with the powers in these clauses. There is also a concern that requiring these securities to be deemed fully paid up in cash may cause some problems from an accounting perspective. Can the Minister provide any reassurances on that front as well? I beg to move.