Postal Services Bill

Viscount Tenby Excerpts

Wednesday 16th February 2011 Lords Chamber

[Viscount Tenby]

My Lords, we have been blessed with two excellent maiden speeches today—I say that even though I am breaking the unwritten rule by mentioning them. There is safety in numbers, probably.

Considering the amount of discussion there has been about our postal services over past years, it is perhaps surprising how this Bill was almost unchanged during its passage through the other place. I suggest that this, in part, reflects the fact that all sides accept the need for fundamental change to present arrangements and because of the parlous state of Royal Mail finances. With all these historic institutions, ranging from the Post Office to the railways, I am often struck by the disparity between the people at the sharp end—postman, ticket clerks and the like—and the executives further up the chain. I firmly believe that the front-line staff which these organisations have are a priceless asset and I pay tribute to them today.

Time is short, so I will confine myself to one aspect of the Bill today. That is the effect that these proposals might well have on what is by far the largest group in the Post Office retail chain, namely: the 6,000 or so sub-post offices, which form such an important part in the life of rural communities. Indeed, if there has been one central vein throughout this excellent debate, it has been the emphasis on the social importance of such an organisation. These franchises—for that is in effect what they are—cater for an often elderly population which relies on them for a whole host of postal, financial and administrative services ranging from insurance to the purchase of car tax. Those facilities are there, on the doorstep, for the many unable to get into neighbouring towns regularly and, it should be added, for the many unable to access these necessities via the internet. Incredible as it may seem, there are some like that.

The Government have already stated—and I applaud them for it—that they will not engage in any compulsory closures within the network. I especially welcome that news in view of the estimated 5,000 closures in recent years. Yet there is such a thing as death by a thousand cuts. Take away the ability to pay one’s car tax or, say, to remove the opportunity to send a package over a certain weight and one is relentlessly chipping away at the already extremely slender profit margins that such businesses have to put up with.

For the year 2011-12, the Government have promised a grant of £180 million but I wonder whether the Minister can tell me what percentage of that figure is swallowed up by the flagship or Crown offices where, as I am sure she will agree, the social benefit is considerably less than that generated by the sub-post office network. She will not have the answer to that and I apologise for bowling it at her tonight but, since I am in the mood, perhaps I might ask the Minister a further question. A considerable sum has been earmarked to reform the current network. Can she confirm that this reform includes the conversion of as much as two-thirds of the network into Post Office Local and basic and outreach facilities?

It is all very well to promise an end to the closure programme but, on reduced incomes—some have calculated the reduction to be as much as 75 per cent—many sub-post office franchisees will regretfully decide that they are unable to carry on. The possibility of future mutualisation, perhaps based in some way on the John Lewis profile, has received a cautious welcome across the board. Yet whatever the final solution, what surely cannot be denied is that the 6,000 Post Office local outlets should be adequately represented—I stress, adequately, not by a token representative—on any Post Office board. I would welcome the Minister’s assurance that the Government fully accept this vital requirement. After all, many franchise holders have considerable entrepreneurial skills that are not always replicated in the higher echelons of the Post Office itself, even though I am sure that other attributes are present in abundance. It would be folly not to take advantage of that readily available asset.

There are many important matters to discuss and settle in this Bill. I am aware of that but I make no apology for concentrating on this one point. In times past the Conservative Party has emphasised its pride in and devotion to the rural economy and the countryside. This emphasis on the community is a worthy feature of Liberal traditions as well. I can think of no better way of affirming these values than by helping to ensure that small communities throughout the length and breadth of this country retain their village shops and services. I ask the Government, through this Bill, to be sensitive and imaginative in dealing with these needs.