§ 1. Alan Simpson (Nottingham, South)If he will make a statement on discussions with the Department for Environment, Food and Rural Affairs about the Royal Mail's decision to end mail transport by rail. [132959]
§ The Minister of State, Department for Transport (Dr. Kim Howells)Royal Mail's distribution operations are a matter for the company, not something in which the Government would seek to intervene, however much my right hon. Friend the Secretary of State or I may regret that loss of business for the rail freight sector.
§ Alan SimpsonMy hon. Friend will know that on 18 September the Under-Secretary of State for Environment, Food and Rural Affairs, Lord Whitty, wrote to the RMT union, saying:
I personally and this Department also have grave concerns about the Royal Mail decision, which seems to be heading in the opposite direction from the aim of a more balanced, environmentally friendly and integrated transport system.If the Government continue to remain committed, as I am sure we are, to a process that transfers increasing amounts of freight from road to rail, which is the policy of the Department for Environment, Food and Rural Affairs as well as the Department for Transport, how do we ensure that joined-up government works in relation to a company in which we are the principal shareholder?
§ Dr. HowellsRoyal Mail came at this issue from a very interesting and new angle—that its new strategy would be more environmentally friendly than its old one. 490 Indeed, it has made out a case that, overall, the new transport network will use about 2,000 fewer road vehicles and reduce carbon dioxide emissions by 30 per cent. I assume that DEFRA is looking at that—we are certainly looking very carefully at it—but Royal Mail has to be a company that operates commercially and delivers value for money. That is why it has taken its decision to switch from rail to road.
§ John Thurso (Caithness, Sutherland and Easter Ross)Has any financial assessment been made of the implications for the railways of Royal Mail's decision? For example, is it likely to cause other freight users to consider withdrawal from the railways, particularly while there is uncertainty over the £8 billion demanded by the rail regulator?
§ Dr. HowellsFirst, I congratulate the hon. Gentleman on taking up his new position. It is always a pleasure to see him.
We certainly look very carefully at all the schemes that are proposed to try to help shift whatever we can from the most congested roads on to the railways, and we will continue to do so. That is the Government's policy. Of course, we are looking at the recommendations made by the rail regulator and, indeed, at his interim report.