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Postal Services Bill [HL]

The noble Lord, Lord Clarke of Hampstead, and the noble Baroness have just given us a clear picture of the potential effect that a reorganisation of Royal Mail might have in the current economic climate. We all know from experience that that can often mean some rationalisation of the workforce, which is why the issues raised by the noble Lords and the issue in Amendment 18 are vital. As I understand it, these provisions apply TUPE regulations to any transfers or cessations of contracts. That therefore goes some way to ensuring that any rationalisation that is carried out is done with a mind to the impact that it will have on the employees. But I must tell the Committee that one thing is clear to me—the drafting of Schedule 1, in particular, is extremely difficult to understand. There appears to be some inconsistency between what is specified as falling within a transfer scheme in Schedule 1 and the initial definition in paragraph 7(2). There appears to be no mention of the accounting basis of the value of any transfer schemes. Does the Minister not feel that that would be a useful addition? I understand that there has also been some surprise among outside stakeholders, who I believe have expressed their concern to officials in the Department for Business, Enterprise and Regulatory Reform, that the disapplication of directors’ duties and some Insolvency Act provisions were in one draft of the Bill but have now magically disappeared. There may be a good reason for that but I think that we are owed an explanation. Can the Minister indicate why this has happened? Has any other way forward been found to overcome some of the legal issues around transfers that does not involve giving the Secretary of State power directly to issue a transfer scheme and so circumvent these duties? I have inserted in Amendment 18 a requirement that any direction to make a transfer scheme must first be consulted on with the companies involved and the employees. I would hope that paragraph (a) of my amendment would be unnecessary. I cannot imagine that any transfer would take place without long discussions with the relevant companies as to what is being moved where. Paragraph (b), of course, would ensure that the affected employees were consulted also. As ever, uncertainty reigns supreme over what will happen on the ground as opposed to what is apparently happening in the minds of those writing the policy papers. Giving the employees the assurance that they will be consulted before any great change is made to their contracts of employment would provide some much needed reassurance in this area. I look forward to the Minister’s reply.