Postal Services Bill

Lindsay Hoyle Excerpts

Wednesday 27th October 2010 Commons Chamber

[Mr Russell Brown]

On a point of order, Mr Deputy Speaker. I merely want to put the record straight. The Secretary of State has indicated that I lost 13 post offices but I did not; I lost two. I am anxious that he is bandying figures around.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

That is not a point of order, but the hon. Gentleman has certainly made a point of clarification.

[Vince Cable]

The hon. Gentleman might want to correct the official record if that is the case.

Let me explain why we need the Bill. We should ask what will happen if we do not act, and do not proceed with it. The Government believe that we still need a universal postal service, collecting from all post boxes and delivering to all 28 million postal addresses six days a week. We will still be required under EU law to fund the universal service if no one can provide it commercially, so the taxpayer could be left to pick up the pieces. We cannot predict how much that would cost, or when it would happen if no action were taken, but we know that it would not be cheap and we are not prepared to take that risk with taxpayers’ money—not with the public finances in the current state. That is why we are determined to press ahead with the Bill.

This is not simply about making sure that taxpayers do not have to cover the costs: it is about doing what is right for the future of the company and its employees. Richard Hooper is clear that if his recommendations are taken forward urgently, the Royal Mail has a potentially healthy future. As my predecessor, the right hon. Member for Wolverhampton South East (Mr McFadden), said almost two years ago,

“I believe that Royal Mail and the postal market can thrive in the future, provided that decisive action is taken now.”—[Official Report, 16 December 2008; Vol. 485, c. 966.]

We are taking that action.

The problems that Royal Mail faces can be addressed through the Bill. After all, it is the only company with the ability to visit all 28 million addresses on a daily basis. It has an unrivalled customer base, and it can build on its position as the leading provider of letters and parcels by providing a new range of digital products for its customers. The Bill is the only way that we can make that positive future a reality.

--- Later in debate ---

[Huw Irranca-Davies]

On a point of order, Mr Deputy Speaker. The right hon. Gentleman is spraying around statistics on post office closures and, once again, he is getting them wrong. I realise that I may be out of order, but that is unforgivable.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Let us clear this up. We both know that that is not a point of order. Many hon. Members want to speak. Spurious points of order do not help the Chamber. We need to get on with the debate. We may have a chance for everybody to put their opinions afterwards.

[Vince Cable]

I will take one more intervention.

--- Later in debate ---

[Vince Cable]

I believe I have given my hon. Friend that reassurance. Royal Mail will not subsidise its competitors, protections will be built in and there will be a genuine regulatory level playing field in a way that has not been quite true in the past.

Previous attempts at legislation on Royal Mail have not had a great history of success. I anticipate that there may be some opposition to the Bill both inside this House and elsewhere, although I believe that after 20 years of false starts, there is now a willingness to do what needs to be done. There is no easy way out, and the problems that Royal Mail faces will not go away. There will be no winners if we fail to act. Royal Mail’s employees will face continued uncertainty over their pensions and their jobs, customers will face a declining service and taxpayers will continue to bear the risks. Ultimately, Richard Hooper was clear that without this action, Royal Mail would fail.

Royal Mail needs this Bill. The company says so, Richard Hooper says so, the previous Government said so and I say so. I therefore strongly commend this Bill to the House.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I inform the House that Mr Speaker has not selected the amendment.

--- Later in debate ---

[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Many Members wish to speak, and I remind them that Mr Speaker has decided to impose a six-minute limit on Back-Bench speeches.