§ Mr. WrayTo ask the Secretary of State for Trade and Industry what steps the Government are taking to ensure that a full range of postal services is maintained. [66636]
§ Mr. Timms[holding answer 3 July 2002]The Government laid down the universal postal service obligation in primary legislation in the Postal Services Act 2000. The legislation says that the obligation consists of a service provided at an affordable price determined by a public tariff uniform throughout the UK and includes the delivery each working day to the home or premises of every individual in the UK and a collection each working day from access points. Under the Act it is the primary duty of the Postal Services Commission (known as Postcomm) to exercise its functions in the manner which it considers is best calculated to ensure the provision of a universal postal service and it currently requires Consignia, in the licence, to provide the universal postal service.
§ Mr. WrayTo ask the Secretary of State for Trade and Industry what financial assistance the Government have given to Consignia since 1997. [66637]
§ Mr. Timms[holding answer 3 July 2002]The Government have shown a strong commitment to maintaining postal services through a variety of schemes which have been predominantly designed to support the Post Office network and to explore possible new income streams.
The Government contributed £480 million to the capital cost of the Horizon project which computerised the whole network. We have also made available a £2 million fund to support volunteer and community initiatives to maintain or reopen post office facilities in the rural areas where traditional service would otherwise close. Figures for the end of May showed that applications to the value of £500,000 had been assessed and approved and to that date, payments of £231,000 had been made. Government provided £25 million for the "Your Guide" pilot in Leicestershire and Rutland which trialled the concept of post offices as one stop shops for government information and services.
Following the announcement in January agreeing in principle to a compensation package for the urban network restructuring programme, the Government will make available up to £210 million for the compensation and investment package for urban offices, subject to state aid and parliamentary approval.
In line with the Government's commitment to the maintenance of a nationwide network of post offices, proposals for the rural network are being developed in the context of advice on transitional financial assistance from the Postal Services Commission.
In terms of supporting the mail business, the Government have not provided financial assistance for specific projects but, as announced to the House on 13 June, the need for the company to restructure has led to the Government agreeing the basis of a financing package which will allow the restructuring to go ahead. The £1.8 billion of investments on the Balance Sheet will be held by the group holding company as reserves. It will be available to back the investment required in the mails 479W business, to implement the renewal programme and to support the nationwide network of post offices, subject, where necessary, to the relevant state aid clearances.