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Postal Services Bill [HL]

Amendments 15 and 16 relate to the Secretary of State’s powers to direct the issue of, and to acquire, securities under Clauses 5 and 6. Clauses 5 and 6 mirror powers under Sections 63 and 64 of the Postal Services Act 2000. Due to other changes in the Bill, it was considered clearest to introduce these new clauses rather than to amend the existing powers. That is the essence and substance of my argument: they are in the Act. To amend them because of the changed terminology in the Bill would be messy. We therefore felt that it would be clearer to put in two new clauses. The amendment would prevent the Secretary of State directing a company in the same group as a Post Office company or Royal Mail company to issue securities to the Secretary of State, the Treasury or their nominee, or to acquire securities in a company which was in the same group as a Post Office company or a Royal Mail company. Examples of such companies are Royal Mail Holdings plc, which is the ultimate holding company of the group, Royal Mail Estates Ltd, which is the group’s property company, and General Logistics Systems Ltd, which is the European logistics business. The powers of direction in Clause 5(1)(c) relate to the potential reorganisation of the Royal Mail group of companies. We do not envisage the need to use them in relation to the reorganisation of the group now being contemplated, but we do not see any reason to curtail the powers, given that Section 63 of the Postal Services Act 2000 currently provides them. The power to acquire securities in a company covered by Clause 6(4)(c) could be helpful to those companies. For example, under the working capital facility currently provided by the Secretary of State to the Post Office, loans are provided via the issue by the Post Office of debt securities, which are acquired by the Secretary of State under the provisions of Section 64 of the Postal Services Act 2000. Clause 6 of this Bill mirrors Section 64 of the Postal Services Act 2000. It is perfectly possible that, at some point in the future, the Secretary of State might want to come to a similar arrangement with, for example, the holding company of the entire group, Royal Mail Holdings plc. The amendment to Clause 6 would prevent that. We see no reason to restrict that ability. The clauses are designed simply to put back the existing powers. We do not envisage any transfer of securities which has not been laid out already in our policy statement. We do not envisage a particular handling of the parcels businesses by virtue of these clauses. We make no commitment to parcels in any sense other than that already stated in our policy documents. We certainly do not foresee any movement on that until we have completed our discussions with our potential partner and we have an agreement. It would be foolish of me to suggest that I understand the accounting point raised by the noble Lord. I shall write to him on it and I hope that I shall be able to give him the assurances that he seeks.