Jim Shannon
Main Page: Jim Shannon (Democratic Unionist Party - Strangford)(10 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Michael Fallon
I reassure the hon. Lady that all those matters are covered by the licence conditions under which the Royal Mail operates. The licence is given by Ofcom, and it is for that body to ensure that the licence conditions are adhered to.
Jim Shannon (Strangford) (DUP)
What Royal Mail needs is new investment, upgrading and modernisation within continuity of service. Can the Minister give an indication of the additional investment that will take place as a result of the sale of shares in Royal Mail?
Michael Fallon
I told the House of the scale of investment now being made by the privatised German postal service, Deutsche Post. That £600 million of investment gives us an idea of the scale of investment that may be needed to help to modernise the Royal Mail. It has to modernise its network, invest in its infrastructure and automate more of its parcels business. It can no longer compete for scarce public resources with schools and hospitals that will always have priority over such investment. It is absurd to have a company of that size as the only really big British business that cannot access the private capital that it needs. That will end.