Skip to main content

Royal Mail

Volume 476: debated on Thursday 22 May 2008

20. To ask the Secretary of State for Business, Enterprise and Regulatory Reform if he will make a statement on the future of the Post Office and Royal Mail. (207001)

The Government are providing total funding of up to £1.7 billion up to 2011 to modernise and reshape the post office network and to put it on a stable footing.

Royal Mail needs to transform into a modern, efficient postal services provider so that it can compete in a liberalised market. The Government have made available £1.2 billion to enable the management to implement its business plan to achieve this.

The Government announced an independent review of the postal services sector on 17 December 2007. Following the publication of its initial findings, which paint a stark picture of the huge changes in the postal market, my right hon. Friend the Secretary of State has asked the review panel to bring forward ideas urgently, including changes to the system of regulation, to meet our ambition for a Royal Mail that provides a timely and efficient postal service for domestic and business consumers.

To ask the Secretary of State for Business, Enterprise and Regulatory Reform if he will make a statement on Postcomm's proposal for the part-privatisation of Royal Mail. (206998)

Postcomm's proposal that Royal Mail should have greater access to private capital was part of a submission to the independent Review of the postal services sector.

It would not be appropriate to have a running commentary on points made in submissions to what is an independent review.

The review panel is expected to report to the Secretary of State later this year.