Delivery Charges (Scotland)

Jamie Stone Excerpts

Wednesday 20th December 2017 Westminster Hall

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I congratulate the hon. Member for Moray (Douglas Ross) on securing this debate. Across my vast and very remote constituency—the remotest on the UK mainland, although it is part of the United Kingdom—my constituents face iniquitous delivery charges. It is a scandal. Rebecca from John O’Groats is quite right to establish that petition, and I support her all the way.

As has been said, the cost of delivery charges has a knock-on effect on every other cost in my constituency because it is passed on to other services. Surely the mark of a civilised society is that it looks after everyone on the same level terms, independent of where they actually live. It is completely and utterly wrong that somebody is disadvantaged simply because they happen to live in a very remote part of the United Kingdom.

[Kirstene Hair]

Does the hon. Gentleman agree that constituents who live in rural areas are being left behind, not just with regard to delivery charges, as some areas of my constituency are, but with slow broadband speeds? Time and time again, residents in rural areas are penalised for choosing to live where they do.

[Jamie Stone]

I wholeheartedly endorse the hon. Lady’s comments. The argument for the interest of the remotest and most rural parts of Scotland is one on which we can unite, regardless of party political divisions. I look forward to working with her on this issue.

I have only a short time left, so I will be brief. Governments on either side of the border have looked at this issue—even, in my own case, once upon a time when I was part of the Government in the Scottish Parliament. We did not deliver on either side of the border. We have to work together to sort this problem out once and for all.

We must remember why the penny post was put in place. Rowland Hill was moved to found it because he saw a young lady who was too poor to pay the charge for a letter from her fiancé—at the time, people had to pay money when they got a letter. That was how sad it was, and that is why we have a universal charge for Royal Mail deliveries, which is something that we should be rightly proud of in this country. It is absolutely essential that we try to deliver on this. I will repeat myself and say that it is wrong for anyone to be disadvantaged because of where they live.

[Ms Nadine Dorries (in the Chair)]

Five minutes please, Mr Hendry.

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[Angus Brendan MacNeil]

rose—

[Jamie Stone]

rose—

[Margot James]

I will give way one last time to the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil).

--- Later in debate ---

[Margot James]

If the right hon. Gentleman will allow me, I will come on to what I propose to do before I close.

We already have legislation in place under the general Consumer Protection from Unfair Trading Regulations 2008 and the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, which apply to online purchases. They make it clear that information given by traders to consumers regarding delivery costs must be up front and transparent before a transaction is entered into. Any consumer who believes those rules are being breached should report it to trading standards through the Citizens Advice consumer service.

If misleading advertising about the cost of delivery is an issue, the Advertising Standards Authority, which has responsibility for ensuring compliance with the code of advertising sales, promotion and direct marketing, will act to ban or amend advertisements that have the potential to harm or mislead the public. Decisions on complaints are made public, and where necessary the ASA will report persistent offenders to trading standards for further enforcement action.

The Government’s view is that regulating prices, or intervening in how businesses and retailers establish their pricing structures, would not overall be in consumers’ best interests, because they are commercial matters. The market is highly competitive and innovative, with many different types of companies being selected by online retailers to provide delivery solutions. That has given rise to new ways of receiving packages, such as collecting them from more secure and more convenient locations and post offices.

The issues involve a three-way relationship between consumers, online retailers and delivery companies. As Members stated in the debate, the postal sector regulator, Ofcom, has just concluded a two-year study of parcel delivery surcharges that reflect the cost to operators and go beyond them. It found that some retailers apply a surcharge to consumers for delivery to certain locations, while others do not. It is therefore not clear that surcharges applied by parcel operators to online retailers are automatically passed on to consumers in all cases. The Government will consult Ofcom further on what might be done to improve competition. As highlighted by my hon. Friend the Member for Moray, the Consumer Protection Partnership, which brings together enforcement bodies and advice providers and is chaired by my Department, recognises that this is a priority that requires further work. It brings together a number of important bodies with an interest in this vexatious matter.

A number of Consumer Protection Partnership members, including Citizens Advice Scotland, the Consumer Council for Northern Ireland, the ASA and other enforcement bodies, along with Ofcom, are working together to undertake a review of parcel surcharging. That review is looking at the existing research, evidence and legislative framework, with the aim of improving compliance by online retailers with consumer protection law. It will also consider further proposals relating to concerns about the level and fairness of parcel surcharging, about which we have heard so much this afternoon.

[Jamie Stone]

I appreciate the Minister’s sincerity. Could she please add to the list she has just outlined the petition from Rebecca in John O’Groats? It is heartfelt, genuine and has masses of support, and a moral imperative behind it.

[Margot James]

I will certainly ask the partnership to take into consideration the petition to which the hon. Gentleman refers.

Recommendations will be considered by the Consumer Protection Partnership in early 2018, with the intention of agreeing a co-ordinated package of activities for organisations across the UK. I look forward very much to receiving that advice, and considering its recommendations as to what further action we can take to enforce the law and ensure fairer treatment of consumers—something which we have heard so much about this afternoon.

I am convinced by the strength of feeling expressed by hon. Members that some action is required, so the Government will publish a consumer Green Paper next year that will look at issues such as transparency and fairness across a range of markets. I expect that those responding to that paper will want to comment on how business treats customers, including in respect of delivery charges, and how it reacts to their complaints. That, too, will inform the Government’s approach.

I thank my hon. Friend the Member for Moray for dramatically raising the profile of this issue, and I will be interested in further input from him and other colleagues across the House in the future. I end by adding my thanks and Christmas wishes to all staff at Royal Mail, as mentioned by the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney). We wish all our posties a very merry Christmas. I thank hon. Members and, as it is my last debate of the year, I will also say that I have enjoyed debating with the hon. Member for Sheffield, Brightside and Hillsborough, and I wish her a merry Christmas as well.