Lord Mandelson - House of Lords Statement: The Future of Royal Mail

Introduction

My Lords, I wish to make a statement about the Royal Mail.

This Government is firmly committed to a universal postal service: that is, the ability of the 28 million homes and businesses across the country to receive mail six days a week, with the promise that one price goes anywhere.

The universal service helps to bind us together as a country. And, as well as its social importance, it is the means by which many companies build and operate their businesses, but it doesn’t come free.

Last December, John Hutton invited Richard Hooper to lead a full, independent review of the postal services market. Its purpose was to look ahead to the future and to recommend the steps needed to sustain the universal service in a world where technology, consumer behaviour and the communications market are all rapidly changing.

The review did not cover the Post Office network.

I have now received Richard Hooper’s final report. It is a serious, wide-ranging study and makes sober reading. We are publishing it this afternoon.

I am very grateful to Richard Hooper and to Dame Deirdre Hutton and Ian Smith for their work on it.

Hooper’s conclusions

Let me set out Hooper’s analysis of the challenges facing the Royal Mail.

First, there has been a revolution in communications technology over the past decade as consumers turn to emails, the internet and text messages. In this country 60 billion text messages were sent last year.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive