(12 years, 9 months ago)
Commons ChamberI cannot update the hon. Lady on that point at this particular moment.
At a time of national austerity, when we are seeking to reduce the cost of public services to the taxpayer, it is absolutely right that Parliament and parliamentarians are in the vanguard. Indeed, it would be absolutely wrong to exempt ourselves from that process.
I appreciate that my hon. Friend is trying to gain consensus, but I fear he is failing. I was on the Administration Committee, and I was bored to tears and managed to escape. May I ask him when the House agreed to the total savings programme that his Commission is forcing through?
The Commission put forward the overall figure of 17% savings in real terms during the summer of 2010. That figure informed all the documentation that has come out since, and it is the target. I actually hope that we can go further than that, because the process has demonstrated that many of the ways in which we do things have remained unchanged for many years, decades even. When they have been properly examined and re-engineered, it has been found that there are real and considerable savings to be made, not only monetary savings but increases in the efficiency of our work patterns.
(13 years, 11 months ago)
Commons ChamberIs my hon. Friend aware that there are many examples of private sector companies splitting to become separate entities and that, in almost every case, a shareholders’ agreement between them has set the terms until they have been able to operate independently? Is that not precisely what the new clause would do, and is it not simply commercial good practice, which should be commended to the Minister?
I am extremely grateful to my hon. Friend. If he is called to speak in the debate, I hope he will elaborate on that important and valuable point, of which I was not aware. I am sure he is correct—he would not have said it otherwise—so if it is acceptable for private sector companies to split but still have a legally binding agreement, why cannot we have that in this case? I thank him for making that point.
Royal Mail needs to be free from Government interference. It must become more dynamic—I think that that reinforces my point—and more competitive, as the market for postal services has liberalised. Mr Richard Hooper, who has reported to this Government and the previous Government, has said that Royal Mail’s profit is considerably lower than that of other national postal authorities and a lot lower than that of the private carriers. Of course, one reason for that is the subsidised delivery of private mail. Whether or not that is an accurate assessment, the argument in favour of privatising Royal Mail has at its core the desire for the business to grow and become more profitable. As with all private businesses that operate in strongly competitive markets, Royal Mail will undoubtedly want to use the new commercial freedoms it has been given. Indeed, a dynamic Canadian business woman was appointed as chief executive precisely to ensure that Royal Mail can get the best of starts as a wholly commercial entity.