Royal Mail Sale

Debate between Lord Low of Dalston and Lord Popat

Wednesday 16th July 2014 Lords Chamber

[Lord Popat]

My noble friend raises a very important question. The party opposite failed to achieve a sale or to find a solution to the problem of Royal Mail. This Government have taken a loss-making public enterprise and turned it into a highly successful, respected public company. Both the National Audit Office report and last week’s Select Committee report reached the important conclusion that we had successfully achieved our objectives. The Royal Mail IPO has inspired other companies in the UK to go for a flotation.

[Lord Low of Dalston (CB)]

My Lords, the noble Lord will be aware that much concern has been expressed by Royal Mail and others at the threat posed to the sustainability of the universal postal service by the rapid rise of direct delivery competition in postal services, which are able to cherry pick the lowest hanging fruit without any obligation to serve less profitable and harder-to-reach markets. Would he agree that, in those circumstances, it would be helpful if Ofcom, which has responsibility for the integrity of the universal service, undertook a full review of direct delivery as a matter of urgency, instead of in 2015 as planned, and determined quickly any regulatory changes needed to protect the universal service?

[Lord Popat]

My Lords, the businesses complement each other. As the chief executive of Royal Mail has said, it is unthinkable that the two companies will not always work very closely. Ofcom is an independent organisation and it will regulate and oversee the function of the Royal Mail.

Banks: Lending

Debate between Lord Low of Dalston and Lord Popat

Wednesday 5th February 2014 Lords Chamber

[Lord Popat]

My Lords, the Minister is not painting a rosy picture. Let me take the last point made by the noble Lord, relating to competition. We will soon spin out a TSB from Lloyds Bank; we will spin out Williams & Glyn’s Bank from the Royal Bank of Scotland; we have the British Business Bank in place and the large number of private banks that have come into the market: the Metro Bank, the Shawbrook and the Cambridge & Counties Bank. There are therefore several banks coming into the market. Another thing that the regulators have done is that they looked at the regulations to make it easier for new companies to apply for banking licences. We have 20 applications being considered at the moment, so given time, we will have a number of banks in real competition.

[Lord Low of Dalston (CB)]

My Lords, if the recovery is going so well, why are businesses not investing on a more significant scale, but rather holding very considerable amounts of uninvested resources on their balance sheets?

[Lord Popat]

My Lords, you cannot force a company in the free market to make an investment, but you can create the conditions for such things to happen. I am pleased to say that the conditions in this country are now pretty good for businesses to invest money.