What is the Governments Role?
The Government now has a "dual role" with respect to the postal market
Role 1
as the authority
responsible in the national interest for setting the legal and regulatory
framework and (through the Regulator) the social and environmental
obligations on the Post Office company and other licensed postal operators.
In its role as
guardian of the national interest and legislator the Government:
-
has set the universal service obligation and the framework for a uniform tariff in legislation within the context of EU obligations;
-
appoints a regulator and establishes the principles of the regulatory regime;
-
has strengthened the Consumer Council and appoints its Chairman;
-
has retained prime responsibility as the UK's postal representative within the European Union, World trade Organisation, Universal Postal Union and for determining legislative framework;
-
lays down the social and environmental guidance to be followed by the Postal Services Commission;
-
has the power to give universal service providers directions in respect of free services for the blind.
Tell
me more about
The Universal Service Obligation
Postcomm
Postwatch
The European Union
Social and Environmental Obligations
Free Services for the Blind
Role 2
As sole shareholder
in the Post Office company (one ordinary share being held by the HM Treasury
solicitor (as a nominee of HM Treasury) and 49,999 ordinary shares and one
special share being held by the Secretary of State for Trade & Industry) the
Government exercises influence over it within prescribed limits (these are set
out in the company's Memorandum and Articles of
Association), thus enabling its management to operate with the
appropriate commercial freedom.
Within this
framework, Government:
-
appoints the Chairman of the Post Office company; and approves the appointment of the Board (after consulting with the Chairman), seeking to ensure access to the widest possible experience, internally and externally;
-
determines the Board members' remuneration on the basis of advice from the remuneration committee of the Board;
-
consults with the company on its strategic plan which includes key financial projections, and overview of strategy and an analysis of major risks;
-
approves borrowing for major acquisitions and also sets the guidelines on borrowing. Otherwise Government is not involved in the day-to-day management and commercial matters which fall to the Post Office company.
Tell me more about
Memorandum and Articles of
Association
Commercial Freedom
Government
Ministers whose responsibilities include postal services
The
Rt. Hon. Patricia Hewitt MP - Secretary of State for Trade and Industry,
and Minister for Women and Equality - Overall responsibility.
Tell
me more about Patricia Hewitt
Stephen
Timms MP - Minister of State for Energy, e-Commerce and
Postal Services.
Tell
me more about Stephen Timms
Lord
Sainsbury of Turville - Parliamentary Under-Secretary of State for
Science and Innovation - DTI spokesperson in the House of Lords.
Tell
me more about Lord Sainsbury