---

Postal Services Bill [HL]

Both Amendment 81, tabled by my noble friend Lord Clarke, and Amendment 85A, tabled by the noble Lord, Lord Razzall, deal with the issue of users’ access to the universal postal service. I should like to reassure your Lordships that the needs of users are at the heart of the Bill. The universal postal service is part of the social and economic glue that binds us together and it is paramount that the needs of users in accessing that service are given a central place in the new regulatory regime. Access to the universal service for consumers is via both post boxes and post offices. With respect to Amendment 81, I understand my noble friend’s concern that Postcomm’s existing duty to review the post office network is not being transferred to Ofcom. Section 42 of the Postal Services Act 2000 requires Postcomm to provide advice and information about the number and location of post offices. This power is not transferred to Ofcom because, in our view, it is not needed. Consumer Focus, the body which represents consumer interests, can already investigate anything in relation to the number and location of post offices and, under the Communications Act 2003, Ofcom already has the power to undertake research in relation to any matter relating to its functions. There is already provision within the Bill to address my noble friend’s concerns. Clause 28(3) will widen Ofcom's functions to include ensuring the provision of access points, such as post offices and post boxes, to meet the reasonable needs of users. It is therefore part of Ofcom’s primary duty in respect of post. This means that Ofcom would, in any event, have the power to monitor the size and distribution of the post office network. On a practical level, the Bill mirrors the current system whereby, through its licence granted by Postcomm, Royal Mail is required to provide access points which meet the reasonable needs of users. Amendment 85A, in the name of the noble Lord, Lord Razzall, seeks to require that an access point for the universal service exists in every postcode district. I believe the reference to access point actually means a reference to post offices. "Access point" can also mean post boxes, so it is important to be clear. A sufficient number of access points is crucial to the provision of the universal postal service. I have already pointed your Lordships to the requirement that Clause 28(3) puts on Ofcom but I will repeat it again because it is so important: Ofcom must carry out its functions in relation to postal services in a way that it considers will secure the provision of sufficient access points to meet the reasonable needs of users of the universal postal service. Your Lordships will know that in 2007 the Government set minimum access criteria for the post office network, the first time that any protection of this kind had been provided. These criteria are indeed more stringent than was previously thought necessary by the regulator for access to the universal service. The post office access criteria reflect the important social and economic role that these branches play in their communities and this Government’s commitment to maintaining a post office network with national coverage. As the Secretary of State has said, we have no intention of supporting a further programme of post office closures. The criteria that must be met in respect of post offices include that 99 per cent of the UK population nationally must be within three miles, and 90 per cent of the population nationally be within one mile, of their nearest post office outlet. Furthermore, there is a criterion requiring that in each postcode district at least 95 per cent of the population should be within six miles of their nearest post office outlet. Currently 99.8 per cent of postcode districts comply with these criteria. I hope your Lordships will agree that these are very stringent criteria. Indeed, given that postcode districts vary in size, specifying, as we already do, that the vast majority of the population must be within a maximum distance from their nearest post office may actually be more stringent than merely having at least one in each postcode district, as the amendment seeks. It is the Government’s view that it would not be proportionate for us to set further criteria on the number and distribution of post offices. The criteria that exist for the post office network already provide for a broad distribution of outlets providing reasonable access on a nationwide basis and specific protection for remote and sparsely populated areas across the country. It is much better for the issue of access to the universal postal service to be tackled, as it is within the Bill, by reference to the needs of users. The Secretary of State made a statement about post office closures. He stated during earlier Committee stage debates that the Government have no intention of supporting any further programme of post office closures and in no way did he caveat that statement by time. The Government have established access criteria to ensure a truly national network of post offices. For the first time ever the criteria have a minimum carriage level and Post Office Ltd is required to exceed or meet them. Given the size of the post office network, with some 97 per cent of offices privately owned and operated, there will always be changes resulting from natural churn. The new code of practice jointly agreed by Post Office Ltd and Consumer Focus sets out detailed arrangements to inform and consult customers and local stakeholders on the reasons for any substantive changes in service and proposals for future provision. The Secretary of State has separately recognised the value of wider use of the post office network and we are considering a people’s bank. We fully endorse the idea that the Post Office should do more on financial services. It already provides a wide range of financial services products, which are very popular, and there are a number of good suggestions which we and post offices will consider. As to postcode districts and the Argyll problem, as I will call it, the present requirement on postal districts is that 95 per cent of people in each postcode district shall be within six miles of a post office. The current situation is that all but five of the 2,796 postcode districts comply with the access criteria. As at the end of February, there were four failing postcodes, but four out of these five will be compliant by 12 May. Whether or not the fifth is Argyll I am afraid I do not know; my notes do not tell me. I hope I have addressed the points on access made by the noble Lord, Lord De Mauley. De facto, the Government set the requirements on the post offices by their legally binding contract with Post Office Ltd and we anticipate that arrangement continuing. No time limit has been put on the assurance and the criteria that I have referred to are set out in that agreement. With those reassurances, I hope that my noble friend will not press the amendment.