Update on the Postal Services Bill

Wednesday, 01 July 2009

In an interview with the Financial Times, Lord Mandelson said he still hoped to get the necessary legislation on the statute book before the next election. He also noted that the Government’s intention to get all three parts of the Postal Services Bill on the statute book: “We will not do one of these without the others”.
 
The delay of the Bill will have consequences for the regulatory landscape, as Postcomm is likely to remain responsible for regulation until next year. You can read more about the Government’s decision here: http://news.bbc.co.uk/1/hi/uk_politics/8123530.stm.

Addendum 02/07/09:
Lord Mandelson recently responded to a question on Royal Mail in the House of Lords. He said the following:

‘Market conditions have made it impossible to conclude the process to identify a partner on terms that we can be confident would secure value for the taxpayer.

There is therefore no prospect in current circumstances of achieving the objectives of the Postal Services Bill. When market conditions change we will return to the issue.
We remain convinced that Hooper’s combined package offers the best chance of securing the universal postal service while protecting Royal Mail pensions’. 

Lord Mandelson stated that the Govt does not intend to “cherry-pick implementation” of the Bill and confirmed that Postcomm will regulate for the time being with their powers unchanged. He stated that “need for modernisation within Royal Mail has not gone away” and the Government will be looking for evidence that there is an “appetite for modernisation” within RM.