Royal Mail and the Post Office

There are two points. First, Postcomm did not set the access price; it was negotiated by Royal Mail. Secondly, whether we were correct to liberalise at a particular time—a point mentioned also by the hon. Member for Wealden (Charles Hendry)—is becoming a moot point. The European directive has been agreed. The rest of Europe is committed to liberalisation over the next few years, with the largest countries doing so by the end of 2010. Liberalisation is coming in other countries. Many hon. Members quoted the Hooper review, saying that it stated that"““the status quo is not tenable…There is, therefore, a compelling case for action.””" No one quoted Hooper's statement:"““Returning to the days of statutory postal monopolies is not a policy option in the European Union””." It is important to remember both statements when considering the challenges facing the mails market. What has been the effect of competition? The report is clear about the benefits to large users of mail services. It is also critical of benefits to small business and domestic users. Of course we care about domestic users, because they are our constituents. Even though only 13 per cent. of mail is what we would describe as social mail—the stamped mail with which we are all familiar—it is important that our communities receive a top-quality service from Royal Mail. The large bulk mailers—they account for 87 per cent. of mail—have done well from competition. In the few minutes that remain to me—it is always a feature of these debates that I am asked to respond to more points than is possible in the time—I turn to some of the specific points raised in the debate. Although postal prices for the UK were increased recently, they are comparatively low internationally. Our service to the user is not expensive compared to services in Europe. Many hon. Members asked about the future of the card account and stressed its importance to the future of the post office network. I spoke to the National Federation of SubPostmasters earlier this week, and it is keen for the Post Office to win the contract for the new card account. Hon. Members will know from their attendance at previous debates that the process is out to tender. The hon. Member for Argyll and Bute said that the Post Office must get the work. That may be a statement of intent on his part, but it is not one that the Government can legally make. Tendering rules have to be pursued, and the decision will be taken in the proper way by my colleagues at the Department for Work and Pensions.