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Postal Services Bill [HL]

My most recent example of negotiating on "must", "may", "shall" or "would" was with the German telecommunications Minister in a European Council meeting, where, rather to my chagrin, he outnegotiated me in English on the wording of the telecoms framework. Let us hope that we can do better on this one. I shall try to give some clarification. As we understand it, Amendments 88B and 88C seek to increase the threshold—or at least question whether the threshold is correct—that needs to be reached before Ofcom may impose access price controls on Royal Mail. These amendments challenge whether the Bill contains the appropriate checks and balances in the various subsections and schedules on Ofcom’s ability to impose access prices. We contend that the balance is right. Furthermore, by raising this threshold by the introduction of "might", the amendments would risk tilting the regulatory balance too far away from the benefit of consumers to the benefit of the company. In the long run, that would serve neither the consumers nor the company well. Clause 34 already provides that Ofcom may not impose a USP access condition, which includes access to price controls, unless the regulator considers it appropriate either to promote efficiency and effective competition or to confer significant benefits on the users of postal services. A USP access provision that imposes a price control is also subject to a standard general test for imposing or modifying regulatory conditions as set out in Schedule 6. Ofcom must ensure that access price controls are objectively justifiable, do not duly discriminate and are proportionate and transparent. As we have stated previously, Royal Mail currently delivers 99 per cent of all items posted in the United Kingdom and no other company is likely to have an equivalent national network in the foreseeable future. A balance has to be struck between regulation that protects the consumer and allowing the company to flourish. The Bill, as drafted, attempts to provide such a balance and we believe that it does. I hope that these explanations give some certainty to the noble Lord as to our preference for the language as drafted and we ask him to consider withdrawing his amendment.