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Postal Services Bill [HL]

While I think that I understand the driving logic behind the amendments to create a binding connection between the requirement to impose an access condition and the requirement for a transparent level of accounting disclosure and clear financial information, the Government believe that these two amendments, in practice and in course, would provide no additional regulatory benefit but, perversely, could risk an increased regulatory burden on Royal Mail and possibly a delay in implementation. Under Clause 34 as drafted, Ofcom may impose a USP access condition for either access to Royal Mail’s postal network or accounting separation relating to access, or both elements together. Amendment 87B would join these elements, thereby reducing Ofcom’s flexibility under Clause 34 to impose an access condition without having also to impose a related accounting separation condition. Amendment 88A would allow for an accounting condition under Clause 35 to be sufficient to satisfy Clause 34(1)(b). Amendment 88A presupposes that a condition under Clause 35 has been imposed and is sufficient to cover the access being required under Clause 34. Again, that has the potential to constrain Ofcom and could mean delaying the imposition of an access condition pending imposition of an accounting condition under Clause 35. It would also mean that Royal Mail had to be subject to both a USP access and a USP accounting condition rather than just a USP access condition alone. The Bill rightly requires Ofcom to act in a proportionate manner when imposing any regulatory conditions. That applies equally to accounting conditions, whether they are imposed under the powers set out in either of the two clauses that we are discussing. We believe that this will ensure that there will be no unnecessary repetition of accounting conditions. I hope that this explanation is clear and I invite the noble Lord to consider withdrawing his amendment.