Universal Postal Service

Debate between Alan Reid and Mike Crockart

Thursday 17th July 2014 Commons Chamber

[Mr Reid]

I agree with the hon. Lady that it is not just TNT and companies like it that would have to pay into the fund, but a wider range of companies. That would be a decision for Ofcom.

If Ofcom finds that there is a net burden on Royal Mail, there is a provision in the 2011 Act that allows the Government to direct Ofcom to establish the universal service fund. That would require other operators to contribute financially to support the universal service. I do not think that we are at that stage yet, but the Government and Ofcom might have to use that power at some time in the future.

Royal Mail has pointed out that it has to meet all the targets that are set by Ofcom and publish its performance against those targets quarterly and annually.

[Mike Crockart (Edinburgh West) (LD)]

My hon. Friend spoke earlier about whether Ofcom recognises that there are extra costs. Of course, Ofcom did recognise that there were extra costs, but its answer to Royal Mail was that it should change its charging structure and charge other organisations more on a zonal basis. Royal Mail immediately did so, but TNT complained and we are now in a year-long re-examination under the Competition Act 1998. Ofcom tried to provide a way out, but it has not worked. Surely it now needs to come up with something else.

[Mr Reid]

I certainly agree with my hon. Friend. The universal service is so important for the country that I hope that any reviews or inquiries will be given a high priority and be conducted as quickly as possible, whether they are being carried out by Ofcom or the Competition and Markets Authority.

As I was saying, Royal Mail has pointed out that it has to meet all the targets that are set by Ofcom and publish its performance against those targets quarterly and annually. However, its competitors do not have to meet or publish any targets, other than the figures on complaints. Ofcom should use its powers to set targets for all operators and compel them to meet them. That would provide transparency and allow consumers to make an informed choice between operators.

Scotland Bill

Debate between Alan Reid and Mike Crockart

Tuesday 21st June 2011 Commons Chamber

[Mr Reid]

The Scottish Parliament already has more than a putter, and the Bill will give it a lot more clubs in its bag.

I support the Government’s new clauses. I listened to the hon. Member for Dundee East (Stewart Hosie), who appears to have left us, and I conclude that he has not made a case for his amendments. I want to compare the SNP’s approach to that of the other parties in Scotland. The other parties all worked together within the Calman commission and, through deliberation and working towards consensus, came up with a package of measures to give more powers to the Scottish Parliament. The Government are implementing those measures through the Bill. The SNP, however, refused to take part in that process. It has come along tonight with amendments that have no back-up papers, and it cannot make a case to back them up.

When I questioned the hon. Member for Dundee East, I understood his case to be that if corporation tax is cut, more revenue will come in. As I pointed out in my intervention, however, assuming his case to be correct, if one part of the UK were to cut corporation tax, the other parts would be forced to follow suit and there would simply be a race to the bottom, in which businesses would not be paying their fair share of taxes. That would mean either personal taxes going up or services being cut.

Equally, the hon. Member for Dundee East did not convince me on alcohol duties. All the practical problems were put to him and he was not able to answer them. I understand that he thinks the Scottish Government should increase alcohol duties, but if such duties were lower in England, people who lived near the border would simply travel across it to buy alcohol. No doubt when they were in the supermarkets there, they would buy other things as well, which would be a loss to the Scottish economy.

[Mike Crockart (Edinburgh West) (LD)]

My hon. Friend makes a fine case, but it is not just the people living close to the border who would do that. A large black market would undoubtedly be created in exactly this type of goods and it would grow across Scotland and contribute to the difficulties that we have already mentioned about the country’s dependence on alcohol.

[Mr Reid]

My hon. Friend is correct. There would be an incentive for a white van man to drive south, fill up his white van, come up to Scotland and sell the alcohol at a profit. When I intervened on the hon. Member for Dundee East, we heard a sedentary intervention from the hon. Member for Angus (Mr Weir) to the effect that Argyll was not close to the border. However, I would point out to him that for a whole variety of reasons people from Argyll regularly visit England and, if they could buy alcohol cheaper there, there would be an incentive for them to fill up their car with it. That would mean a further loss of income to the Scottish economy.