Postal Services Bill

Debate between Mark Durkan and Gordon Banks

Wednesday 12th January 2011 Commons Chamber

[Mark Durkan]

We are not worried about why we should impose an agreement of 10 years; most of us are worried about why the Government would not impose an agreement of 10 years. If someone says they want the maximum agreement possible, it is entirely reasonable for us as a legislative body to say that 10 years is a reasonable period. Given that the legislation is going to construct new realities and impose new conditions on these businesses, we at least have a duty and responsibility to make sure that one of them can have a measure of confidence that it will not have if this new clause is not accepted.

[Gordon Banks]

Does the hon. Gentleman agree that the argument put by the hon. Member for Solihull (Lorely Burt) is not assisted by the fact that people such as Mr Brydon are unable or unwilling to put a figure on what the maximum number of years will be? That undermines her argument.

[Mark Durkan]

I accept fully the point that my hon. Friend on the Front Bench is making. In the absence of other indications, that is why we as legislators have a duty at least to indicate what we think is a reasonable time. It is unreasonable for us to do otherwise in the circumstances.

--- Later in debate ---

[Mark Durkan]

I fully take the hon. Gentleman’s welcome point. That is precisely what we as legislators are being asked to do—provide some back-up certainty and reinforcement on such an agreement.

There is a suggestion that the EU would upset an agreement, or frown on it. Let us remember that we are not talking about the House suddenly legislating to impose an agreement on two currently free, private and commercial enterprises; we are talking about a very different starting point. All Members of the House and of the devolved Assemblies have dealt with lots of situations where, through legislation and other means, we provide for various restraints, guarantees, restrictions and obliged agreements in contracts over a period of years. Such provisions could relate to restrictive gas and energy licences over long periods, guaranteed contracts between providers in different markets to create stability, or even to opening and developing markets. Such things are done all the time, and the measures are respected and accepted by the EU.

[Gordon Banks]

Does my hon. Friend agree with the people who believe that it may not be legal pressure that prevents the Minister from making the proposed arrangement possible, but Treasury pressure?

[Mark Durkan]

I join my hon. Friend in that suspicion; no doubt the Treasury is asking where the proposal will go and what would be the margin of attraction if there were changes. Because the Treasury believes that the proposal would make the business less attractive to the market, it has drawn conclusions and made an assessment.

On that point, I shall close to allow other Members to participate. I stress that we cannot hide behind the assumptions and presumptions that have been casually made, either in Committee or in the House, that the new clause is neither necessary nor feasible because other things are unthinkable.