Royal Mail

Lord Bishop of Exeter Excerpts

Wednesday 10th July 2013 Lords Chamber

[The Lord Bishop of Exeter]

My Lords, I welcome the affirmation in the Statement—the Minister has repeated the affirmation twice—that the Royal Mail will still be the UK’s universal service provider and that this will include services to urban and rural areas alike. However, may we be assured that not only will there be universal coverage but there will continue to be uniform pricing? Too often the residents of rural areas, especially remote and sparsely populated areas, face higher costs for public services. Can the Minister affirm unequivocally that a privatised Royal Mail will be required to maintain a universal pricing structure and that residents, whether of Westminster or of west Devon, will continue to pay the same price for the service that is offered?

[Viscount Younger of Leckie]

In answer to the right reverend Prelate, through the Postal Services Act, Ofcom has the primary duty of securing the provision of a universal service. I can confirm that this will be secure in the hands of the privatised Royal Mail. What is protected is not only the six-days-a-week letter service to every address in the UK and free services to the blind, which I mentioned earlier, but also affordable prices, which are monitored by Ofcom. On the specific question, Royal Mail stamp prices for the universal postal service will continue to be regulated by Ofcom, which has a duty to ensure that they remain affordable. For example, Ofcom has put in place a safeguard cap on second-class letters and parcels to ensure that the service remains affordable for all users. I hope that that reassures the right reverend Prelate.