Oral Answers to Questions

Michael Connarty Excerpts

Thursday 27th October 2011 Commons Chamber

The Secretary of State was asked—

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

1. What recent progress he has made on securing private sector investment in Royal Mail.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

As I made clear during the passage of the Postal Services Act 2011, we are taking a staged approach to its implementation. Before decisions can be taken on private sector investment, the regulatory regime must be reformed and the Government must secure approval to take on Royal Mail’s historical pension deficit and restructure its balance sheet. Progress is being made in these areas, alongside Royal Mail’s progress with its modernisation plan.

[Michael Connarty]

I thank the Minister for his reply. Will he therefore tell the House exactly how much the Government value the assets in the Post Office pension fund at this moment, how much will be transferred to the Treasury and what will be left in the assets of the pension fund thereafter?

[Mr Davey]

The hon. Gentleman will know, having been in the House a long time, that we would not make a valuation while working with the European Commission to secure state aid clearance. Until we get that, those sorts of calculations would be completely inappropriate.