Economy: Growth

Debate between Baroness Wilcox and Lord Low of Dalston

Tuesday 11th October 2011 Lords Chamber

[Baroness Wilcox]

The noble Lord has outlined exactly what we are striving to achieve. Without doubt, we are looking across the whole of the education and skills system to consider how to maximise economic growth and we shall be reporting on that in the autumn. He asks what we have achieved. As I have already said, the Business Secretary, Vince Cable, has today announced a £170 million package to drive future growth in manufacturing; we have reduced the main rate of corporation tax from 28 to 26 per cent and it will go down to 23 per cent; a £2.5 billion business growth fund has been launched; and we have already announced 24 enterprise zones in the country, helping to create thousands of new jobs by 2015, which will attract hundreds of new start-up firms with simplified planning rules, superfast broadband and more than £150 million in tax breaks for new businesses over the next four years. I have a longer list, but I am sure that someone else will wish to ask a question. I hope that the noble Lord feels encouraged by my answer.

[Lord Low of Dalston]

My Lords, is it not the case that the Government have got their policies in the wrong order? Instead of pursuing deficit reduction in the short term and growth in the medium to longer term, should they not be pursuing growth in the short term and deficit reduction in the medium to longer term?

[Baroness Wilcox]

Reduction equals low interest rates, my colleague beside me murmurs. Without doubt, we are trying to get Britain back on track. It will take time, but we are determined to do it deeply and well. The Plan for Growth is based around four ambitions: creating the most competitive tax system in the G20; making the UK the best place in Europe to start, finance and grow a business; encourage investment and exports as a route to a more balanced economy; and creating a more educated workforce that is the most flexible in Europe. We are the first to start that; we were one of the first to go into this recession; and, with this Government in charge of this country, we will be one of the first out.

Postal Services Bill

Debate between Baroness Wilcox and Lord Low of Dalston

Monday 14th March 2011 Lords Chamber

[Baroness Wilcox]

I thank the noble Lord for expressing that more clearly than I did. The Government have already produced an impact assessment on the proposals in the Bill. It looked at the impact of the proposals on all parts of the United Kingdom. The universality of the universal postal service means that the impact is the same across the UK. The assessment also looked at the impact on small firms, rural communities and disadvantaged groups.

As I said in my remarks on Amendment 16, it will be the regulator, Ofcom, that will have responsibility for ensuring the provision of the universal postal service. Ofcom will report annually on its activities, including ensuring the provision of the universal service throughout the United Kingdom. In addition, we expect that Royal Mail will report, as now, on its quality of service performance broken down by postcode areas, so that there continues to be transparency about the provision of the universal postal service to all parts of the United Kingdom.

With regard to post offices, Clause 11 requires a Post Office company to send a report annually to the Secretary of State on its network of post offices. The report on the post office network must contain information about the accessibility of post offices to, among others, individuals living in rural areas, small businesses, individuals with disabilities and elderly individuals. In recognition of the importance of post offices to all communities, Clause 11 requires the Secretary of State to give a copy of the report to Ministers in the devolved Administrations, as well, of course, as laying the report before this Parliament. I expect that we will discuss this reporting requirement in great detail when we come to Clause 11.

The noble Lord, Lord Touhig, raised a number of specific points on the post office network and I am sure that we will consider these issues in full when we debate the proposed amendments to Clauses 4 to 7 and to Clause 11. The report in Clause 2 is specific to when a decision has been made to undertake a disposal of shares. I reiterate that, regardless of any change in ownership from the public to the private sector, the obligation on Ofcom to ensure the provision of the universal service will remain. The universal service is protected by Parliament through this regulatory framework, not by the Government’s ownership of Royal Mail.

The information that is already in the public domain and that which will be provided as a result of the Bill will provide long-term transparency on the protection of the universal postal service and the accessibility of post offices throughout the United Kingdom. I therefore, at this late hour, ask the noble Lord to withdraw his amendment.

[Lord Low of Dalston]

My Lords, I am grateful to the Minister for her full reply and to all noble Lords who have spoken. At times I felt caught in the crossfire to the right and the left of me when I was simply moving a simple amendment designed to secure a fair deal for users of postal services. I am certainly most grateful to the noble Lord, Lord Razzall, for his intervention. I am sorry that I was not in my place earlier when he made his point and he had to repeat it, but I am grateful to him for repeating it because I yield place to nobody in my commitment to evidence-based legislation. The point that the noble Lord brought to our attention for a second time struck me as being counterintuitive, as the noble Lord, Lord Young of Norwood Green, said, but there are many things that are counterintuitive and may yet be true. I will certainly take the opportunity, before we come to Report, to follow the lead that the noble Lord has helpfully given us.

I assure the noble Lord that I was not making any party-political points; I was simply interested in curbing the rough justice that the market can sometimes cause in the interests of the consumer. I am sorry that the noble Lord felt it necessary to make his point with such acerbity. I may unwittingly have said something that was not correct, as the evidence and my further researches may reveal, but I assure the House that while I may have been mistaken there was no intention to mislead the House or to say anything that was untrue. I will follow that up and will be able to set the record straight by the time that we come to Report.

The Delegated Powers and Regulatory Reform Committee has pointed out that the Secretary of State has a power to alter the minimum requirements of the universal postal service. Without following the conclusions of the Ofcom review, this is, as the Committee pointed out, a significant power for the Secretary of State to have. It would not be unreasonable for the Secretary of State to be obliged to consult the groups that we have mentioned in the amendment before having the opportunity to exercise that power.

At this late hour I do not wish to press the amendment, but I will look carefully at the Minister’s reply—I repeat that it was very full and I am sure that it was helpful—to ensure that it contains the safeguards that we are looking for and I reserve the right to return to the matter on Report. For now, I beg leave to withdraw the amendment.