HoC Questions - Universal Service Obligation

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Ian Murray (Shadow Minister (Business, Innovation and Skills); Edinburgh South, Labour)

To ask the Secretary of State for Business, Innovation and Skills what discussions he has had with Royal Mail Group, Ofcom or officials or Ministers in other departments about invoking section 44(9) and section 44(10) of the Postal Services Act 2011 to ask Ofcom to report on the sustainability of the Universal Service Obligation.

Hansard source (Citation: HC Deb, 17 June 2014, c523W)


Jennifer Willott (Cardiff Central, Liberal Democrat)

None.

Under the Postal Services Act 2011, Parliament gave Ofcom the primary duty to secure the ongoing provision of the universal service and to this end Ofcom must also have regard for the provision of a universal service to be financially sustainable.

Ofcom monitors market developments, including any impacts on Royal Mail's performance and operational efficiency, and has the regulatory powers and tools to intervene if the sustainability of the universal service is ever at risk.

As part of its monitoring regime, Ofcom publishes a report every year on Royal Mail's performance and the postal market, and this includes an update on the financial sustainability of the universal service. More information about Ofcom's regulatory regime can be found on its website:

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