To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform what assessment his Department has made of the merits of options for raising revenue for Royal Mail apart from selling a minority shareholding. (260125)

[holding answer 2 March 2009]: The Government are taking forward a package of measures to maintain the universal postal service and to secure the future of Royal Mail. These include Royal Mail entering into a strategic partnership with an experienced postal or network operator. Partnership is not simply about giving Royal Mail access to capital. A partner will deliver corporate experience of major transformation of a network business at all levels of the business. This will reduce the current risks to a successful modernisation of the company and accelerate the company’s response to changes in the communications market.

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform what assessment his Department has made of the effects on Royal Mail's finances of establishing a universal support fund as provided for under the EU Postal Directive. (260128)

[holding answer 2 March 2009]: The Government recognise that the universal service has a cost. We do not believe that a levy and fund to finance the universal service is necessary at this time. However, we intend to legislate for a power to create such a levy and fund if this is needed in the future.

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform how much of the £1.2 billion loan made by the Government to Royal Mail has been spent; when the loan was expected to be taken up; when the full amount of the loan will have been taken up; and if he will make a statement. (260309)

[holding answer 3 March 2009]: Royal Mail has spent or committed £600 million on modernisation so far and is expected to draw down the full £1.2 billion loan facilities Government have made available over the next two years, to assist with implementation of their existing transformation plan.