Post Office: Mail Monopoly (Hansard, 19 December 1989)

§ The Minister of State, Department of Trade and Industry (Lord Trefgarne)
My Lords, we keep the 117 options under review but have no plans to end the letter monopoly at present. However, we have made it clear that the Post Office's monopoly is a privilege, not a right, and in the event of a cessation or serious disruption of the letter service, we would consider suspending it.

§ Lord Boyd-Carpenter
My Lords, I thank my noble friend for that not unhelpful Answer. Have he and his right honourable friend considered the representations made by the Mail Users' Association rather nicely headed Deliver Us from the Post Office and drawing attention in particular to the fact that charges must be above a £1 limit before others can circulate mail?

§ Lord Trefgarne
My Lords, yes, my right honourable friend has received the representations to which my noble friend refers but has not yet been able to reach a decision upon them.

§ Lord Peston
My Lords, will the Minister clarify his earlier Answer? I understood the Question not to be about disruption or cessation of service but about the monopoly in regard to the normal Post Office service. Do I understand, first, that the Minister's Answer means that the Government have no intention of removing the Post Office's monopoly over whatever it is one would call normal service? Secondly, is it not the case pretty well everywhere in the world that the Post Office in this context is a public monopoly?

§ Lord Trefgarne
My Lords, the last part of the noble Lord's question is probably right. Generally speaking, the service is a public monopoly. We have made it clear that we do not at present plan to change the position. But if the service deteriorated for any of the reasons to which I referred in the main answer, then of course the matter would have to be reconsidered. It was, I believe, my noble friend Lord Jenkin who last changed the terms of the monopoly about seven years ago.

§ Lord Peston
My Lords, perhaps I might press the Minister. He has now changed the form of his words which does not necessarily mean that he is mistaken. However, does he accept that there is a distinction between the problem that might arise if there were disruption and that which might arise if the service were below what one might regard as a good enough standard? Am I not right in saying that the two problems are not the same?

§ Lord Trefgarne
My Lords, yes, the noble Lord is right that the problems are not the same. However they may lead to the same ending, namely, that the monopoly is suspended.

§ Lord Barnett
My Lords, as the Post Office is a public monopoly and therefore the responsibility of the Government, why should it deteriorate?

§ Lord Trefgarne
My Lords, I am afraid that the noble Lord is not correct. The responsibility for the delivery service rests with the Post Office.

Lord Winstanley
My Lords, the noble Lord has told the House that the Post Office's monopoly is a privilege. Does he accept that regarding certain of its duties it is a responsibility and a burden? Does he agree that there are not queues of people lined up from the private sector to take on responsibility for delivering mail in the Lake District, the Highlands of Scotland, the Yorkshire Dales, Cornwall and so on?

§ Lord Trefgarne
My Lords, I think that the noble Lord has put his finger on the problem. In addition to enjoying the privilege to which I have referred, the Post Office accepts certain obligations. They are to maintain the service from anywhere to anywhere else, including sometimes very remote places.

§ Lord Orr-Ewing
My Lords, is my noble friend aware that it was said nearly nine months ago when the Post Office last increased the price of stamps to 15p and 20p that it would start a weekend collection? Will this monopoly bring that into being? Is there any sign that it is going ahead with the weekend collection?

§ Lord Trefgarne
My Lords, I am happy to be able to tell my noble friend that Sunday collections have restarted on a trial basis in five locations: Edinburgh, Belfast, Newcastle, Darlington and Cardiff. The Post Office intends to add 10 more places by the end of February.

§ Lord Molloy
My Lords, does the Minister agree that if anybody in the country, or particularly in London, were offered 19p to pop down to Cardiff or up to Glasgow with a letter they would think whoever asked them was stark raving mad? Secondly, one realises that the postmen get letters through to people in remote parts of the world and at this time of the year we ought to say to them, "Thank you for your services during the year".

§ Lord Trefgarne
My Lords, I think that the noble Lord is quite right to pay tribute to the efforts of the Post Office, particularly at this time of the year. As for the rate to which he referred, as did my noble friend, perhaps I may add that in Germany, for example, far from being 20p the charge is 31p.

§ Lord Cledwyn of Penrhos
My Lords, will the noble Lord therefore confirm that this important public service is being carried out efficiently and well at present in the public interest?

§ Lord Trefgarne
My Lords, I do not think that I could give a blanket assurance of that kind. The fact is that there are areas where the service falls below an acceptable standard. However, the Post Office recognises that and is doing its best to put it right.

§ Lord Boyd-Carpenter
My Lords, is my noble friend aware that there is a falling off in the number of letters delivered the next day?

§ Lord Trefgarne
My Lords, I wonder whether my noble friend saw the last report of the Post Office. Very detailed figures were given on the subject, 119 including important targets for improvement. I very much hope that they will be achieved.