Printed Photo ID Market

Paul Beresford Excerpts

Tuesday 13th November 2012 Commons Chamber

[Sir Paul Beresford (Mole Valley) (Con)]

It is a pleasure to be joined again by the Minister of State, Department for Transport, my right hon. Friend the Member for Chelmsford (Mr Burns). I believe this is the second time we have been the last two standing prior to a recess—I apologise, but that is the way it is. I raised this issue on the Floor of the House earlier this year, and lurking in the background is the Minister who responded to that debate but who shall remain nameless. There has been some movement since I last raised the matter, and today’s Minister will be well aware of the widespread correspondence from many MPs across this House. I firmly believe that what is being proposed represents a fundamental misuse of public money to support the post office network—I have said that before and I continue to say it. The Government urgently need to address the situation, so that the private sector and the Post Office can be strengthened and can happily co-exist.

I want briefly to summarise to the House the background to this unhappy situation and to outline how the Government can and should intervene to allow private sector photographers and the whole post office network, not just the few, to thrive in an environment of co-existence. In 2009, the Labour Government decided to award a Driver and Vehicle Licensing Agency contract to provide identity pictures for driving licences to the Post Office. That was awarded without a business impact assessment or competitive tender. The contract took effect on 1 April 2010, when the Post Office started to capture ID pictures for the DVLA in about 750 urban high street offices using expensive Cogent equipment. Consequently, a large portion of the private sector printed photographic market has been removed and taxpayers’ money is threatening to undermine private sector jobs in the photographic industry. The contract will end next year, and the Government have just announced that the Post Office will provide the front office counter services—FOCS—for the DVLA, as a result of the tender launched this year. Of course, that will have a knock-on effect in respect of others moving into providing photographs, such as those for passports.

The majority of outlets in the photographic industry are dependent on the official printed ID photo market for their survival. For some retailers, ID photos can equate to about 60% or more of their annual revenue. The private sector professional photographic industry, represented by the PMA—it was known as the Photo Marketing Association—includes: Kodak Express; Fuji images; Snappy Snaps; outlets such as Photo-Me and Jessops; and more than 1,500 independent photographers nationwide. We can add to that the vast network of photo booths, which benefit many retailers, as they provide an additional income, and adorn some of the areas in the House of Commons. Interestingly, hundreds of post office and sub-post offices have been receiving millions of pounds for having these units in their establishments. It is estimated that the welfare and livelihoods of more than 5,000 professional private sector photographers who work on the high street and in other networks are at risk due to a taxpayer-subsidised body endangering private sector jobs. The headquarters of Photo-Me are in my constituency, in the village in which I live, and the company is looking at sacking perhaps 60 staff fairly shortly.

I am grateful to Photo-Me’s chief operating officer, Olivier Gimpel, who has, unsurprisingly, been pushing the point and ensuring I am aware of it. Private sector photographic industry representatives have been campaigning hard to mitigate the effect of the decision and have sought to work with the Government, the Post Office and the DVLA to find a workable solution. At a meeting between the photographic industry and the director of finance and strategy at the DVLA on 16 July, the DVLA made it clear that it wishes future ID pictures to arrive in a digital format. It proposes a solution that would see a photo retailer, studio or booth sending photographs directly to the DVLA, with the Post Office taking pictures, too. However, in order to guarantee work for the Post Office, as the front office counter service provider, the photographic industry has proposed a better and, I believe, higher quality and cost-effective scanning solution. That will not only meet the quality requirements of the DVLA but preserve jobs at the Post Office and ensure the survival of the private sector photographic industry. The Post Office would in future scan printed ID pictures and thus deliver a digital image.

Discussions between the DVLA and photo industry are ongoing, and following the July workshop it was proposed that another take place on 27 November, so I am hopeful. I know the Minister will want that to be a success and I share that sentiment. If the Post Office is asked to scan printed ID pictures it will guarantee work for all post offices in the future, not only those 750 branches that have had the expensive and large camera technology installed.

I, and I suspect many other hon. Members, will wish to see all our respective sub-postmasters benefit from a solution that allows them to enjoy the ability to scan printed photographs with inexpensive, easily operated and compact equipment in their little post offices. For example, I do not want my own Bookham post office or any Mole Valley post office to start complaining that potential customers have started to travel to Guildford to process ID pictures, as that is where the nearest camera is. It is miles away and not easily reached from many parts of my constituency. I want my local post offices to benefit from the market. In fact, all 11,800 post offices could.

The solution proposed by the photographic industry is best, wide-ranging and cheap and it would work. What matters is that the Post Office should be appointed as the FOCS, which has happened. It should not become a total substitute for the private photographer. My colleagues should understand that the proposed PMA solution would have a positive impact for the whole country and for 11,800 post offices, not just 750.

As a Conservative who wishes to see the high street and our private sector grow, I find it worrying that subsidised, expensive technology is marginalising private sector high street photographers and will demolish their market. They are, after all, small business people who have had the foresight to devise a solution that delivers the digital agenda, saves thousands of private sector jobs and provided virtually all post offices with guaranteed future work. It must be the nation’s choice.

I have to tell the Minister that I find it unacceptable that the DVLA has in the past sought to create unnecessary hurdles in an attempt to derail the solution. It appears to me that there was and perhaps still is an attempt simply to wave the problem to one side, which is why I am here tonight. In addition, the DVLA seems to be claiming that it is not prescribing how the picture should be taken and that the front office counter service is responsible for setting the method. I believe that it has been setting new and apparently random photo resolution requirements that do not appear to be in line with British or international standards but provide a hurdle that the outside private sector photographers could find difficult to overcome. I have asked the Home Office a written question on this matter and received an answer that is oblique, to put it mildly. I used to specialise in oblique answers when I was a Minister, but this one takes the prize.

To sum up, I want the Minister to appreciate five important points that I think will offer a solution. First, the DVLA wants digital ID images of a high quality. The photographic industry’s scanner solution provides that. Secondly, the DVLA front office counter service tender necessitates Cogent scanners. The photographic industry’s proposal will use those scanners and not require more spending, or the maintenance of expensive Cogent digital camera equipment. Thirdly, the DVLA wants photographs of a high quality that meet strict criteria. That is met by the printed ID pictures that are taken by photographic specialist professionals. Fourthly, the DVLA wants a paperless office at Swansea. I understand that in reality, from what I can pick up, the DVLA actually intends to keep paper records of applications, including pictures. The industry’s solution, however, would satisfy the paperless office desire.

Fifthly and finally, we as a nation must value our Post Office. The photographic industry’s solution will strengthen the relationship and will better support the many thousands of post offices. Many of these are suburban, or in my case rural, but do not and cannot be expected to host the expensive and large Cogent equipment. However, they can adopt, adapt and operate simple, much cheaper scanners. The industry’s solution will strengthen the Post Office’s future right across the UK.

I hope that the Minister will look at the matter very carefully in the next few days, and I would be delighted to have a meeting to discuss it with him because a short debate such as this does not allow an exchange of ideas and opinions. It is vital that we keep the industry moving.