Postal Services House of Lords Written replies 2 July 2014

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Lord Bourne of Aberystwyth (Conservative)
To ask Her Majesty’s Government whether they are considering any regulatory changes to protect the universal postal service in the light of postal service providers other than Royal Mail being able to serve selected areas only.

Hansard source (Citation: HL Deb, 2 July 2014, c270W)

Viscount Younger of Leckie (Conservative)
Under the Postal Services Act 2011, Parliament gave Ofcom, as an independent regulator for postal services, the primary statutory duty to secure the provision of the universal service.

Parliament has given Ofcom the regulatory powers and tools it needs to intervene in the market if the universal service is ever at risk. It is for Ofcom to determine how it uses its powers and tools in support of its statutory duties.

Ofcom also has a duty to promote competition where that benefits consumers, though should the two duties be in conflict it is the universal service that takes precedence in the interests of postal users.

More information about Ofcom’s regulatory regime can be found on its website (http://www.ofcom.org.uk" onclick="window.open(this.href);return false;).

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Lord Bourne of Aberystwyth (Conservative)
To ask Her Majesty’s Government whether they are considering a review of the direct delivery market in the light of postal service providers other than Royal Mail being able to serve selected areas only.

Hansard source (Citation: HL Deb, 2 July 2014, c269W)

Viscount Younger of Leckie (Conservative)
Under the Postal Services Act 2011, Parliament gave Ofcom, as an independent regulator for postal services, the primary statutory duty to secure the provision of the universal service.

Last year, following a consultation, Ofcom, as the independent regulator for postal services, set out its guidance on its approach to intervening in response to a material threat to the provision of the universal service.

Ofcom has made clear that if its ongoing monitoring regime, which keeps the situation under continual review and allows for any new evidence, does not prompt the need for any earlier assessment, it will as a matter of course carry out a full assessment of the impact of competition on the universal service towards the end of 2015.

More information about Ofcom’s regulatory regime can be found on its website (http://www.ofcom.org.uk" onclick="window.open(this.href);return false;).

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Lord Bourne of Aberystwyth (Conservative)

To ask Her Majesty’s Government what steps they are taking to protect the universal postal service in the light of declining use of the service.

Hansard source (Citation: HL Deb, 2 July 2014, c269W)

Viscount Younger of Leckie (Conservative)
The universal postal service is protected in primary legislation – the Postal Services Act 2011. Under the Act, Parliament has established the minimum requirements of the universal service – which include letter deliveries 6 days a week at a uniform and affordable rate throughout the UK. Only Parliament can change the minimum requirements.

Government has ensured that ongoing protection of the universal service is at the heart of the regulatory regime by giving Ofcom the primary statutory duty to secure the provision of the universal service and to this end Ofcom must have regard for the financial sustainability of the universal service.

Ofcom has put in place a comprehensive monitoring regime that tracks the financial sustainability of the universal service and Parliament has ensured that the regulator has the powers and tools it needs to intervene in the market if the provision of the universal service is ever at risk.

The steps we have taken to reform the regulatory framework coupled with securing access to the much needed private capital for Royal Mail, as the designated Universal Service Provider, are the best way to safeguard the future of a sustainable universal postal service in the UK.