HC Deb 27 October 2003 vol 412 cc17-8WS
Sir Sydney Chapman

To ask the Secretary of State for Trade and Industry if she will make a statement on how the principles of good regulation, set down by the Better Regulation Taskforce, of(a) proportionality, (b) accountability, (c) consistency, (d) transparency and (e) targeting are applied to Postcomm. [133464]

Mr. Timms

Postcomm must follow its statutory duties, and is accountable to Parliament for its decisions and activities. Its decisions are open to challenge via Judicial Review.

The Department has co-ordinated two progress reports documenting advances made by Government and regulators against the BRTF's recommendations. They have been sent to the Cabinet Office for onward circulation to the Panel for Regulatory Accountability.

The reports have found that Postcomm's activities fully respect the need for proportionality: are consistent with those of other economic regulators: are transparent, with all key decisions fully explained in published documents: and appropriately targeted in relation to their statutory obligations.

Sir Sydney Chapman

To ask the Secretary of State for Trade and Industry if (1) she will take steps to strengthen Postcomm's penalty system for failure to achieve postal service quality targets; [133465]

(2) what research she has commissioned on penalty mechanisms used by postal regulators in other EU countries; [133466]

(3) to whom the financial penalty levied on Royal Mail announced by Postcomm on 30th September is payable; [133467]

(4) if she will make a statement on the financial penalty announced by Postcomm on 30 September levied on Royal Mail for failing first class business service targets. [133468]

Mr. Timms

The Postal Services Act 2000 establishes the framework under which the Postal Services Commission may impose financial penalties. It is for the Commission to decide on its policy within this framework, which was adopted in February 2002 following a public consultation. I consequently have no plans to commission research in this area. The Commission frequently liases with other industry regulators in the UK, as well as postal regulators in the rest of Europe on a range of postal regulation matters. The recent decision to impose a financial penalty on Royal Mail is a matter for the Commission and is still under a 28 day period for comment. Such financial penalties are payable to Postcomm in the first instance, and then transferred to the Treasury Consolidated Fund.

Sir Sydney Chapman

To ask the Secretary of State for Trade and Industry if she will make a statement on the terms of reference she has laid down for Postcomm to guide its duties, purpose and activities. [133469]

Mr. Timms

The Postal Services Act 2000 ("the Act") sets out the purpose and duties of the Postal Services Commission ("the Commission"). The Act makes provision for the Secretary of State in certain circumstances to give directions and guidance to the Commission. On 14 March 2001, in exercise of her powers under section 41(1) of the Act, the Secretary of State gave directions to the Commission with regard to the provision of free postal services to blind and partially sighted persons. In accordance with section 43(2) of the Act the Secretary of State provided social and environmental guidance to the Commission on 22 March 2001.