HC Deb 28 July 2000 vol 354 cc1097-9W
Mr. Mitchell

To ask the Secretary of State for Trade and Industry (1) what financial interests the Royal Mail holds in mail or parcel services in member states of the European Union; how much was received in respect of such interests in the last financial year; and if it counted toward any payment from the Royal Mail to the Chancellor of the Exchequer; [132666]

(2) what the status, income, and competitive position is of majority-owned subsidiaries of Royal Mail in member states of the European Union. [132667]

Mr. Alan Johnson

The Royal Mail holds no subsidiaries or financial interests in mail or parcel services in member states (outside of the UK). However the Post Office interests are as follows.

Percentage
Company Member state Status (share holding)
CityMail Sweden AB Sweden 167
Citipost US based but with offices in Europe including France and Germany 2100
Crie Group France 2100
Der Kurier Germany 2100
Extand S.A. France 2100
German Parcel Germany 2100
General Parcel Austria Austria 2100
Nederlandse Paket Dienst The Netherlands 2100
Pakke-Trans Denmark 2100
Williames Ireland 2100
1 Majority ownership.
2 Fully owned.

The contributions of overseas interests to profits is reported in the Report and Accounts.

Mr. Mitchell

To ask the Secretary of State for Trade and Industry, pursuant to his answers of 13 June 2000,Official Report, columns 595–96W, and 10 July 2000, Official Report, columns 372–73W, concerning successive reductions in the lower limit authorising competitive mail delivery, what treaty article was used as the basis for Directive 96/97; when he expects to receive the advice of the Postal Services Commission concerning the further reduction to the limit; if he will list its members and who appointed them; what monopoly limits were in force in the United Kingdom for such Crown monopolies prior to and immediately after accession to the European Community for letters and packets; and when they were reduced or eliminated. [132664]

Mr. Alan Johnson

As stated in the answer of 13 June 2000,Official Report, columns 595–96W, Directive 96/97 was made under Articles 57(2), 66 and 100a of the Treaty establishing the European Community (now Articles 47(2), 55 and 95 in the consolidated version of the EU Treaty and the EC Treaty made by the Treaty of Amsterdam).

The advice of the Postal Services Commission concerning the minimum reserved area necessary to maintain the universal service is expected to be available during the first half of 2001.

I refer my hon. Friend to the answer given to my hon. Friend the Member for South Ribble (Mr. Borrow) on 4 June 2000, Official Report, columns 186–87W, which gave details of the appointment of members and chairman of the advisory Postal Services Commission which took up its functions under the Postal Services Regulations (S.I.1999/2107). They were appointed by the Secretary of State for Trade and Industry.

The UK joined the European Communities on 1 January 1973. The postal privilege of the Post Office before and after entry to the European Community was as defined in the Post Office Act 1969 where it was limited to the conveyance of letters (regardless of weight or price). The Postal Privilege (Suspension) Order (S.I.1981/1483) suspended the postal privilege in relation to the conveyance of a letter which is conveyed in consideration of a payment of not less than £1. The Order came into operation on 7 November 1981. It followed the introduction of the British Telecommunications Act 1981. The Postal Services Regulations (S.I.1999/2107) which also introduced the 350 gram element came into effect on 1 September 1999 but the pricing structure meant that this did not make any material change.