The
Postal Services Act 2000
The Postal Services Act 2000 is the most recent item of primary legislation in
the UK that relates to the postal services sector. The Act effectively replaced
the Post Office Act 1953, a large majority of the Post Office Act 1969 and some
relevant provisions contained within the British Telecommunications Act 1981.
The Act, and the numerous subsequent Statutory Instruments made under it, are
the primary means by which Government has implemented its desired new framework
for the UK postal services sector. The Act received Royal Assent on the 28th
July 2000 and some of its key provisions allowed for the:
1) Establishment of independent regulation within the UK
The Act allowed for the establishment of a fully-fledged independent Regulator
(Postcomm), placing upon it a primary duty to ensure the provision of a
universal postal service within the UK. It gives the Regulator powers to grant
licences to postal operators within a regulated area for postal services, as
well as the ability to recommend the scope of the regulated area. The Regulator
was also given powers and the responsibility to set quality of service standards
and to regulate prices, thus allowing it to further the interests of postal
service consumers by promotion of greater competition in the regulated area of
the sector, where appropriate.
2)
Greater commercial freedom for Royal Mail
The Act provided for the transfer of the property, rights and liabilities of the
Post Office to a company established under the Act. It empowered the Secretary
of State for Trade and Industry to nominate a company to be known as "the post
office company" provided it was wholly owned by the crown on the day of the
transfer. This company is Royal Mail Holdings plc (then known as Consignia
Holdings plc). The Act also placed restrictions on the issue or disposal of
shares in this nominated company to anyone other than HM Treasury or the
Secretary of State for Trade and Industry (or any nominee of either of them),
unless approval has been given by both Houses of Parliament, allowing the issue
or disposal of shares to a named third party for the purposes of cementing a
joint venture or commercial alliance. Further primary legislation would be
required in order to allow for a more general disposal of shares. The Act also
placed similar restrictions on any subsidiary of the company which is involved
in its core business.
The Act helped underline increasing commercial freedom for Royal Mail by giving
it plc status and moving the business to a more commercial footing, this leaving
it to be governed by company law akin to its private sector competitors, as well
as underlying the accountability of Directors, the commercial status of the
organisation and a clear separation of roles between the Government and the
company's Board.
3) Means for
providing financial support to the Post Office Network
The Act created a mechanism (section 103) for providing financial support in
assisting with the provision of post offices or the provision of services to be
provided from post offices by empowering the Secretary of State to make schemes
to allow subsidies to be paid.
4)
Strengthening of consumer representation in the postal sector
The Act replaced the old Post Office Users National Council (POUNC) with a new
national consumer body (Postwatch) in line with the model for other utilities,
giving it stronger information gathering powers and a key role to play alongside
the regulator in improving UK postal services for consumers.
Related publication
® White Paper -
Post Office Reform – A World Class
Service for the 21st Century 
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Related website links
® The Postal Services Act 2000 -
version as published on Royal Assent
® The Postal Services Act 2000 -
explanatory notes