asked Her Majesty's Government:
Further to the Written Statement by Lord Truscott on 21 November 2006 (WS 32), why £10 million of end-year flexibility (EYF) entitlement in respect of the modernisation of the post office network remained unspent; what is meant by “Royal Mail representation”; what was the original budget for this; and why £630,000 of the EYF entitlement in respect of it remained unspent. [HL1264]
Under the Post Office Network Urban Reinvention programme, up to £30 million was allocated for an investment grant scheme to improve sub post offices on a matched funding basis. There was an unspent balance of £10 million from this funding allocation at the start of the current financial year, which is being used in 2006-7 for further investment grant applications.
Royal Mail representation relates to the use of commercial financial and legal advisers who have been employed on work on the future financing of Royal Mail and Post Office Limited. The estimate requests additional money from central DTI funds that were unspent in 2005-6 to be used for this purpose.