Postal Services Bill

Debate between Chris Evans and Viscount Thurso

Wednesday 12th January 2011 Commons Chamber

[John Thurso]

I share the hon. Lady’s concern, but I do not believe that is insurmountable. In my constituency, I have probably some of the remotest post offices in the United Kingdom. In the villages of Mey and Dunnet we had the first pilot of a van out of Wick, so I have been through all of that. There are problems. There is a post office at Buldoo, which is a mile from Dounreay. Those in charge of the post office are the fourth generation of the family to run it. Happily, they have a croft to sustain them, because they have only 14 customers; there are 14 regular customers and the odd tourist. Clearly, that kind of operation would have a long way to go to be sustainable in the way we are discussing.

A great many products can be delivered online, but often a human interface is required. Given the breadth and depth of the post office network and the number of people involved in it, it can provide that human element that nowadays is so sadly lacking in so much of the interface between Government and the citizen. That is where the opportunity lies.

Let me now explain why I think the new clause of my hon. Friend the Member for Colchester is so necessary. There are many examples in the private sector of businesses that have decided to split, or of joint ventures where those involved have decided to go their own way, or of hotel companies where those in charge have decided to sell the property to a property company but remain the managers. In every one of those examples, there is an agreement. It might be a shareholders’ agreement, or it might be a contract between the two parties, but there is some form of agreement. One aspect of such an agreement that is nearly always in place, and usually for a period of five, seven or sometimes 10 years, is a non-compete clause. If there is not a non-compete clause, it is a fair given that at some point—maybe after one or two years—one side or the other will say, “You know that contract we signed? I reckon we can do a bit better. Let’s have a go at this.”

The Royal Mail needs such a measure just as much as the post offices do. If any body can come anywhere close to challenging the Royal Mail’s universal service obligation last-mileability, it is the post office network. That may be unlikely, but it is a possibility, and why bother with allowing a possibility? It is inconceivable that, in an initial public offering or a trade sale, any investor would make an investment in the Royal Mail if there was not a clear contract. Therefore, I would almost guarantee that there will be a contract, so I do not understand the reticence of the Under-Secretary about giving a few measly guarantees as to length and content. I cannot see how that would be other than simply sound commercial good sense by the Business Department, in order to enable both organisations to operate effectively and have a clear path for the future, and for there to be a clear understanding. It is on that one commercial ground that I think the arguments put forward are compelling, which is why, unless there is an even more compelling argument from the Front Bench, I shall support my hon. Friend the Member for Colchester.

[Chris Evans (Islwyn) (Lab/Co-op)]

I support the new clause. I noticed that the hon. Member for Colchester (Bob Russell) was temporarily sitting on this side of the House a few moments ago. I thought he had crossed the Floor. If he wants to make it a permanent arrangement, I am sure we will find space for him on these Benches.