HC Deb 06 April 1998 vol 310 cc63-4W
Mr. Reed

To ask the President of the Board of Trade what plans she has for the future financing and organisation of the Post Office; and if she will make a statement. [38232]

Mrs. Beckett

Following consultations last year with the main interested parties and in the light of the Third Report of the Trade and Industry Committee, I have commissioned the next phase of the review of the Post Office.

Our objective is to establish a framework for the Post Office that will enable it to meet successfully the challenges and opportunities ahead. It is important that we have an effective postal service which meets the commercial and social needs of the country.

The terms of reference of the next phase of the review are: The Government are committed to the Post Office remaining in the public sector and continuing to provide a universal postal service at a uniform tariff and a nation-wide network of post offices. Against that background, the review will make recommendations on the Post Office's future organisation, structure and financing which will best deliver: greater commercial freedom to enable it to compete effectively in the UK and overseas; and improved efficiency, effectiveness and service standards. The review is to take account of the ways in which overseas competitors and analogous organisations are facing, or being set to face, the challenges of the changing market, and is to consider in particular: a range of options for partnership with the private sector (such as joint ventures) and for the involvement of employees and customers; how best to ensure fair competition in postal services; the role of Post Office Counters in the delivery of Government services; and the Crown Office conversion programme. The Government hope to announce their proposals in the Autumn.

In the meantime, to help it meet the challenges that are already evident, I am extending the current limited freedom that the Post Office already has for international joint ventures to the domestic market.