Postal Services Bill

Debate between Lord Christopher and Earl Attlee

Wednesday 6th April 2011 Lords Chamber

[Lord Christopher]

These amendments certainly deserve support. One of the problems with writing the law is that you do not necessarily relate it to what is going on in the global economy. As I have said before, one should not rule out the prospect that whoever buys Royal Mail may get into difficulties and present you with considerable problems.

There are two examples at the moment, one of which is certainly ongoing and the other is, apparently, temporarily resolved. Not many people know that all the fire engines in London are owned by a company called AssetCo, which recently got into significant financial difficulties. I am told that it will be all right on the night but I have never seen anything to give me assurances about that. It certainly begs a question in my mind as to what would have happened if AssetCo had gone into administration or whatever. The other case, which is certainly continuing, concerns Southern Cross, one of the largest care home companies in Britain, with 31,000 residents in 750 homes. As I understand it, it is owned to a substantial degree by a company in the Middle East. I am not sure what would happen if the worst came to the worst in respect of these. It is therefore appropriate for the Government to place within the Bill sufficient provision to ensure not only that the service continues but that the staff are looked after and their future provided for. I can see no reason why these amendments should not be accepted.

[Earl Attlee]

My Lords, before I address the amendments it may be helpful to the Committee if I say a few words about the policy intention behind Part 4 of the Bill, which introduces a special administration regime. The noble Lord, Lord Christopher, suggested other areas which could, in certain circumstances, cause problems.

These special administration provisions are contingency provisions. We believe that the package of measures set out in the Bill will secure the future of Royal Mail and the universal postal service. The special administration provisions are simply the Government acting prudently and putting in place sufficient contingency plans to ensure that the universal service continues to be provided in the unlikely event that the provider is at risk of entering insolvency proceedings. The noble Lord, Lord Stevenson, referred to the possibility of this arising from an unsympathetic regulatory regime. I remind the noble Lord that the whole object of the Bill and the duty of Ofcom is to secure the universal postal service.

As set out in Clause 67, the overriding objective of a postal administration is to secure the universal postal service that so many of our communities and small businesses rely upon. In order to do this, the administrator and the Secretary of State must have the necessary tools and be able to use them swiftly and decisively to preserve the universal service. It is in this context that we must consider Amendments 25D, 25E and 26A.

Amendments 25D and 25E seek to add additional elements to the objectives of the postal administration. Amendment 26A would restrict the Secretary of State’s power to reduce the regulatory burden on the universal service provider while it was in special administration. Amendment 25D is intended to protect the interests of employees, while Amendment 25E seeks to ensure that the universal service provider is rescued as a going concern. I understand the intention behind the amendments but, as I have said, time will be of the essence in a special administration scenario. To act swiftly and decisively, we must be absolutely clear about the overriding objective, and in this case that must be the continued provision of the universal postal service. To add other objectives would reduce the administrator’s ability to take the action needed to secure the universal postal service—which must be our overriding aim.

Transport: Penzance and Isles of Scilly Ferry Service

Debate between Lord Christopher and Earl Attlee

Tuesday 22nd March 2011 Lords Chamber

[Earl Attlee]

My Lords, we are concentrating on Cornwall’s proposals. Noble Lords should understand that this issue is not just about the ship. There are also proposals for the improvement of the harbours at Penzance and St Mary’s. I understand that St Mary’s harbour has some health and safety issues because mechanical handling equipment gets too close to pedestrians. There is an obvious safety risk that genuinely needs to be addressed. The noble Lord makes very good points.

[Lord Christopher]

My Lords, I am concerned that the Minister can give no assurances about a date on which this might be concluded. It would be a tragedy if the money already offered were to disappear. Then, I suspect, it would not happen at all, with dire consequences for these islands, which now rely exclusively on tourism. I hope the Minister will let the House know as soon as he can what the Government propose if, as seems pretty certain, the helicopter service—which is not quite but nearly as important as the ship—disappears. Will there be some intervention over the possibility of an alternative site for the heliport at St Erth?

[Earl Attlee]

My Lords, I cannot comment any further on the heliport but the noble Lord makes extremely good points. I thank him for raising this issue with me orally some time ago. I immediately took it up with the appropriate Ministers.