Online Retail Delivery Charges

Debate between Drew Hendry and Nick Boles

Tuesday 8th September 2015 Commons Chamber

[Nick Boles]

I am certainly happy to promise action, in the sense of trying to ensure that the statement of principles that we have agreed to publish is adopted by online retailers, and that, if it is not, action is taken to ensure that those retailers step up to the mark. However, I want to be a little bit cautious about implying that we will pass legislation imposing flat charges, meaning that every delivery service must charge the same prices for every part of the United Kingdom. I simply do not believe that that would work, or would be in the long-term interests of consumers, because it would drive out competitive providers of delivery services.

Ultimately, there is progress. The percentage of online retailers who are offering delivery options on a uniform basis is growing, and the percentage who are doing the things that we do not want them to do is shrinking. However, that is not happening fast enough. I think that, working together, we can put more pressure on the industry—on the Amazons, the eBays and, indeed, some of the smaller players—to act more responsibly, without necessarily legislating or regulating further. I shall be happy to work with them, and with SNP Members and other representatives of the fair country of Scotland—the other representative, or two—to achieve that goal. If we can work together, I am sure that we can make some progress, and achieve that one nation for consumers throughout the United Kingdom.

[Drew Hendry]

I have a brief question for the Minister. Would he consider giving consumers the option of using Royal Mail, rather than paying the standard charge that is applied by traders?

[Nick Boles]

That is an interesting question, which leads me to make a point that may correct an impression that was created earlier by the hon. Member for Belfast East. The universal obligation applies to parcels, it is a five-day service and it involves uniform charges, but it is not compulsory for retailers to offer it. What I believe the hon. Gentleman is suggesting is that we should make it a requirement to do so. We may find that, at some points, we will part company on some issues.

This Government are a determinedly deregulatory Government. We do not believe in imposing more burdens on business, and I believe the direction of travel in terms of costs of delivery and the universality of the service suggests that that is the right approach, but I am certainly happy to discuss any issue at this round table; it will not only be me who puts things on the agenda.

If nobody else has any further questions, let me say that I look forward to working with all hon. Members on this issue and I thank the hon. Member for Belfast East for raising it.

Question put and agreed to.