MPs give Postal Services Bill go-ahead

Privatisation of Royal Mail took a step closer last night (Wednesday) after the Postal Services Bill was passed. MPs in the House of Commons passed the Bill, which will now go to the House of Lords.

The Bill – which includes privatising up to 90% of Royal Mail, as well as separating Post Office Ltd from the business – was passed with a government majority of 81.

This is the first time that legislation to enable Royal Mail to benefit from private capital has been approved by MPs.

Business secretary Vince Cable said: “I am delighted that our proposals have passed through the Commons. Upon taking office the Government realised it had to move swiftly to tackle the challenges facing Royal Mail and the Post Office to ensure the future of the important services they both provide. We’re absolutely determined to secure the future of these two proud institutions.”

Minister for postal affairs, Edward Davey, also praised the decision. He said: “Today is good news for everyone who wants to see a successful Royal Mail and Post Office network.”

Today was the first chance for MPs to debate the amendment that the Government introduced on Monday that will ensure that the Queen’s head remains on stamps regardless of who owns the company in the future.

Furthermore, during yesterday’s proceedings the government defeated a challenge by two backbench MPs to force Royal Mail to agree a 10-year agreement to guarantee the Post Office’s custom.

“MPs from all parties have taken a fine tooth comb to our plans and the many hours of rigorous debate have helped to improve our legislation. We’re convinced that our approach is the right one and look forward to the debates which will soon take place in the Lords,” added Davey.