Royal Mail

Andrew Stephenson Excerpts

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

The hon. Gentleman is venturing into a fantasy world. The service obligation is universal and I was providing reassurance that the Government have back-stop powers to protect that obligation, not to undermine it.

[Andrew Stephenson (Pendle) (Con)]

I warmly welcome today’s announcement. It was a pleasure to serve on the Postal Services Bill Committee and watch the previous Government’s half-baked privatisation plans become the excellent proposals before us today. Does the Secretary of State agree that the proposals represent an excellent deal for postmen and postwomen across the UK, allowing Royal Mail to modernise and win a higher proportion of the rapidly expanding packages market?

[Vince Cable]

Yes, that is absolutely right. Royal Mail is making money from packaging although it is losing money from traditional mail delivery. It is therefore important that it has the investment to take that packaging business forward.