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Postal Services Bill [HL]

My Lords, first, I declare my interest as set out in the Register—in particular, being a partner in the national commercial law firm of Beachcroft LLP. As I have said twice before to noble Lords, we support the part-privatisation of Royal Mail, and I have to say to the noble Lord that we agree with the Hooper review. We hope that the Government will be successful in establishing an effective partnership deal between a private operator and Royal Mail. The Conservative Party believes that, if Royal Mail and the universal postal service are to survive, Royal Mail needs the capital and management initiative that privatisation will provide. Therefore, I have to say to the noble Lord that we do not support his amendments, although we understand the passion with which he speaks. Of course, we all know his long-standing interest in this issue but we do not agree with him and we will support the Government if he presses his amendment to a Division. There has been a lot of press speculation over the past few days about what I have just said. I assure the Secretary of State that rumours that we will join forces with the Labour rebels when the Bill reaches another place are quite untrue. We have no intention of voting against reforms which we believe are desperately needed and which are also Royal Mail’s best chance of a secure future. The Conservatives have given every assurance possible. On 7 May in another place, my right honourable friend Kenneth Clarke reconfirmed his support for the principle of the part-privatisation of Royal Mail, and this weekend the Leader of the Opposition, my right honourable friend David Cameron, responded to the question of whether we would back the Government against the Labour Back-Benchers who oppose the Bill by saying: ""Yes, as long as the Government doesn’t do something crazy … and do a U-turn"." The Conservative Party position cannot be clearer. I recall one of my noble friends once saying: ""You turn if you want to"." The Conservative Party on this issue is not for turning. We will support the part-privatisation of Royal Mail and the establishment of an effective partnership deal with a private operator. My challenge to the Secretary of State is to be equally clear and rebuff the rumours that are flying around about the Government’s intentions. Will he please give this House a guarantee that there will be no government U-turn on the Bill? We would not support any concession to the Labour rebels by the Prime Minister or the Secretary of State that would deny Royal Mail the possibility of a partnership deal. Of course, the optimism shown by the noble Lord, Lord Clarke of Hampstead, and other Labour Back-Benchers is understandable because this is exactly what happened in 1998. I do not know whether the Secretary of State will remember that on 7 December 1998, when he was Secretary of State for Trade and Industry, he promised "radical reforms", which included the possibility of part-privatisation. I quote his words: ""I should make it clear"—" this is more than 10 years ago— ""that we certainly do not rule out the possibility of introducing private shareholding into the Post Office—for example, through the sale of a minority stake in it".—[Official Report, Commons, 7/12/98; col. 21.]" Of course, all we got were 10 wasted years. Conservative support for genuine reform was not enough to bolster the resolve of the Secretary of State then, but I hope that it will be more successful now. I hope that, in responding to these amendments, he will respond also to our clear message of support for part-privatisation with a clear commitment that he, the Prime Minister and the Government will not waver. He must not once again be bullied into half-hearted reforms that will fail to deliver. That is why I do not support these amendments.