HC Deb 25 June 2001 vol 370 cc29-30W
Mr. Heathcoat-Amory

To ask the Secretary of State for Trade and Industry if she will make a statement on future ownership arrangements for(a) Consignia and (b) its constituent parts. [297]

Ms Hewitt

The future ownership arrangements for Consignia and certain of its subsidiaries are governed by Part IV of the Postal Services Act 2000. In accordance with sections 65 of the Postal Services Act, no shares in the Post Office company (i.e. Consignia Holdings plc) may be issued or disposed of to anyone other than the Treasury or the Secretary of State (or their nominees) without authority from Parliament in accordance with section 67 of the Act. The Act also prohibits the issuing or disposal of shares in any "relevant subsidiary" of the Post Office company to anyone other than the Treasury or the Secretary of State (or their nominees) or the Post Office company or any other appropriate relevant subsidiary (or their nominees) without parliamentary authority in accordance with section 67. Consignia plc— the wholly-owned principal operating subsidiary of Consignia Holdings falls within the definition of a "relevant subsidiary".

The future ownership of subsidiaries other than Consignia plc and other "relevant subsidiaries" is a commercial matter for Consignia Holdings plc (or the member of the group who owns the subsidiary), in accordance with the commercial freedom given the company under the Post Office reform package.