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Postal Services Bill [HL]

Estimates of what the company requires in cash to modernise will vary from source to source. I would say only two things. Modernisation is not a once-off. Modernisation of a company or business has to be ongoing to meet the changing market needs and demands in which the company is undertaking its business. One of the problems for Royal Mail is not only that it has not modernised in terms of the mechanisation of its business, the introduction of new technology and in its working methods; it has also not innovated sufficiently in terms of new products. As I say, modernisation needs to take place on a continuing basis. My noble friend is right to point out that the Government have previously made sums of money available for investment and modernisation, and it is true that Royal Mail has not been able to take up all the resources available. However, I invite noble Lords to ask themselves why the company and its management have not been able, to the extent that is desirable, to take up and use all those resources for modernisation.