Universal Postal Service

Mike Crockart Excerpts

Thursday 17th July 2014 Commons Chamber

[Mr Reid]

I agree with the hon. Lady that it is not just TNT and companies like it that would have to pay into the fund, but a wider range of companies. That would be a decision for Ofcom.

If Ofcom finds that there is a net burden on Royal Mail, there is a provision in the 2011 Act that allows the Government to direct Ofcom to establish the universal service fund. That would require other operators to contribute financially to support the universal service. I do not think that we are at that stage yet, but the Government and Ofcom might have to use that power at some time in the future.

Royal Mail has pointed out that it has to meet all the targets that are set by Ofcom and publish its performance against those targets quarterly and annually.

[Mike Crockart (Edinburgh West) (LD)]

My hon. Friend spoke earlier about whether Ofcom recognises that there are extra costs. Of course, Ofcom did recognise that there were extra costs, but its answer to Royal Mail was that it should change its charging structure and charge other organisations more on a zonal basis. Royal Mail immediately did so, but TNT complained and we are now in a year-long re-examination under the Competition Act 1998. Ofcom tried to provide a way out, but it has not worked. Surely it now needs to come up with something else.

[Mr Reid]

I certainly agree with my hon. Friend. The universal service is so important for the country that I hope that any reviews or inquiries will be given a high priority and be conducted as quickly as possible, whether they are being carried out by Ofcom or the Competition and Markets Authority.

As I was saying, Royal Mail has pointed out that it has to meet all the targets that are set by Ofcom and publish its performance against those targets quarterly and annually. However, its competitors do not have to meet or publish any targets, other than the figures on complaints. Ofcom should use its powers to set targets for all operators and compel them to meet them. That would provide transparency and allow consumers to make an informed choice between operators.

--- Later in debate ---

[Mr Weir]

The right hon. Gentleman is being typically ridiculous. The universal service is under threat not because of Scottish independence but because of what is happening in this House. It is under threat now—that is what Royal Mail is saying to us—and it is privatisation, supported by him and his colleagues, that is leading to that. Under independence we have committed to bring Royal Mail operations in Scotland back under public ownership, where they should have stayed, and ensure that there is a Royal Mail service in Scotland. If we stay in the Union, we are told not only that we may not have a universal service, but that prices may go up and things may disappear. The right hon. Gentleman should consider a bit more before making such daft interventions.

[Mike Crockart]

Will the hon. Gentleman give way?

[Mr Weir]

No, I have had enough from the Liberals—[Interruption.]