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Postal Services Bill [HL]

My Lords, in moving Amendment 3, I will also speak to the other amendments in this group standing in my name. Under Clause 36, Ofcom would have the power, provided that certain conditions were satisfied, to set the price that other companies must pay to access the network maintained by the universal service provider. In doing so, Amendment 3 will ensure that Ofcom has regard to the costs of providing that network as appropriate. This amendment follows suggestions made in Committee by the noble Lords, Lord Hunt and Lord De Mauley, and by my noble friend Lord Clarke. Competition can improve the efficiency of the postal sector and stimulate innovation. Both are essential if we are to sustain the universal service and to ensure that it meets the changing needs of consumers. Competition must, however, be appropriate and fair. The new access regime set out in this Bill is designed to be transparent and cost-based and to ensure there are no unfair cross-subsidies between postal companies. The fact that Royal Mail needs to modernise is accepted by all the relevant parties. Inefficiencies will take time to drive out, but they must not be locked in for the long term. We believe that this amendment will enable Ofcom to strike the right balance in taking appropriate account of costs. Amendments 4, 5 and 6, too, respond to amendments tabled during Committee by my noble friend Lord Clarke and the noble Lords, Lord Hunt and Lord De Mauley. Clauses 41, 42 and 43 enable Ofcom to establish a scheme to share the cost of providing the universal service. Amendment 4 has the effect of giving Ofcom a duty, rather than a power, to review whether the obligation to provide the universal service imposes a financial burden on the universal service provider. Amendment 6 requires that the first of these reviews must be undertaken no later than five years after Clause 41 comes into force and every five years thereafter. Amendment 5 will ensure that Ofcom must consider whether the universal service provider is meeting its statutory obligations in a cost-efficient manner, in deciding whether any financial burden is unfair and, therefore, that a new scheme is needed. Amendment 7 responds to suggestions made by the noble Lords, Lord Hunt and Lord De Mauley. It will apply the affirmative resolution procedure to any future regulations dealing with the creation of a scheme to share the cost of providing the universal service. It also provides that the Secretary of State must give his consent before any regulations are laid. This reflects the reality that government support would also almost certainly be necessary for any regulations to gain the approval of Parliament. Finally, I would like to say a few words on the subject of appeals. The adequacy of this Bill’s appeals provisions has been the subject of some debate. In particular, some have argued that judicial review by the High Court should not be the means of appeal for some decisions taken by Ofcom. While I do not have a specific proposal to make today, the Government have heard what has been said and will continue to give this issue careful consideration as the Bill moves to the other place. I beg to move.