1 Gordon Henderson debates involving the Department for Business and Trade

Universal Postal Service Order: Rhondda

Gordon Henderson Excerpts
Wednesday 8th May 2024

(7 months, 2 weeks ago)

Westminster Hall
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Chris Bryant Portrait Sir Chris Bryant
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Yes, I can—I think it is fine.

Gordon Henderson Portrait Gordon Henderson (in the Chair)
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As long as it is to do with the Rhondda.

Jim Shannon Portrait Jim Shannon
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Absolutely. I commend the hon. Gentleman for bringing forward this issue; he is right. Does he agree that there must be a greater obligation under the universal postal service order for availability in rural areas? I understand that that is an issue for him too. There is no substitute for a full-service post office, and those obligations should be clearly defined in law. I think the hon. Gentleman is pushing for that. If it were in law, that would be to his advantage and to everybody else’s too.

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Gordon Henderson Portrait Gordon Henderson (in the Chair)
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We will finish at 4.54 pm.

Kevin Hollinrake Portrait Kevin Hollinrake
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I am very grateful, Mr Henderson.

I thank the hon. Member for Rhondda (Sir Chris Bryant) —I could not believe he is not a right hon. Member— for securing today’s important debate. I will touch on the specific situation in the Rhondda, as well as the wider situation. If I may, I will talk about the wider situation first.

Clearly, we recognise the points that the hon. Gentleman made. Mail is very important to our constituents for all kinds of different reasons, ranging from hospital appointments to cards and letters, which are very important to our constituents and will remain so. In the last financial year, all postal operators delivered around 3.6 billion parcels across the UK, and Royal Mail delivered 7.3 billion addressed letters—I will come to the point about prioritisation shortly. The hon. Gentleman did not directly refer to any changes in the universal service obligation; he wants to leave that for another day.

Gordon Henderson Portrait Gordon Henderson (in the Chair)
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Order. The sitting is suspended for 15 minutes for a Division in the House. I will allow 10 minutes for each subsequent Division.

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On resuming—
Gordon Henderson Portrait Gordon Henderson (in the Chair)
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Order. The sitting is resumed and the debate may now continue until 5.17 pm.

Kevin Hollinrake Portrait Kevin Hollinrake
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Thank you, Mr Henderson. On the universal service obligation, I know the general obligation was not something that the hon. Member for Rhondda focused too much on, but it is important to say that we believe the six-days-a-week service should remain. We have been very clear about that. Ofcom has the primary duty to secure its provision. Despite the fact that letter volumes have halved in the last decade, which has put further pressure on making the service viable, it is right that the Prime Minister and I make it clear that the importance of maintaining a Saturday delivery service is that it provides flexibility and convenience. We will not countenance scrapping it, not least because of the impact that would have on the greeting card, magazine and similar industries.

I will come to Rhondda specifically, but on the main point the hon. Member for Rhondda raised about the general quality of service, we understand that we have had a number of complaints. It is one of the most frequent items that comes across my desk in correspondence or meetings with fellow Members of Parliament. Ofcom obviously has the powers to investigate and take enforcement action where failures are identified. It did so when it fined Royal Mail £5.6 million earlier this year for its contravention of conditions in 2022-23. Ofcom is obviously monitoring this to make sure that the service improves.

The latest published quality of service results for quarter 3 of 2023-24 showed that Royal Mail continues to fail to meet its first and second class delivery targets. It is quite clear that the service is not at the level we want to see. I met Martin Seidenberg, chief executive of the parent group, and made that point to him clearly. He accepted that this was the case, and that things need to improve. One thing about prioritisation, which the hon. Gentleman referred to, is that—