Postal Services Act 2000
(2000 c.26, 28th July 2000)

An Act to establish the Postal Services Commission and the Consumer Council for Postal Services; to provide for the licensing of certain postal services and for a universal postal service; to provide for the vesting of the property, rights and liabilities of the Post Office in a company nominated by the Secretary of State and for the subsequent dissolution of the Post Office; to make further provision in relation to postal services; and for connected purposes.
[28th July 2000]

Note: this is an important Act that redefined the nature of the postal services. As it is also very lengthy (it takes up 112 pages in the original printing), it seemed worthwhile to show the links to sections in the format of the "Arrangement of Sections" listing at the beginning, and to include the "Explanatory Notes" section at the end, even though neither of these are part of the Act text itself.

SHOW LIST OF SECTIONS

ARRANGEMENT OF SECTIONS

PART I

INTRODUCTORY

1. The Postal Services Commission.
2. The Consumer Council for Postal Services.
3. Duty of the Commission to ensure provision of a universal postal service.
4. Provision of a universal postal service: meaning.
5. Other duties of the Commission in the consumer interest.

PART II

LICENCES FOR POSTAL SERVICES

Restriction on provision of postal services

6. Restriction on provision of postal services.
7. Exceptions from section 6.
8. Power to modify section 7 by order.
9. General power to suspend the restriction.
10. Emergency power to suspend the restriction.

Licences

11. Licences: general.
12. Licences: grant.
13. Licences: conditions and other provisions.

Modification of licences

14. Modification of licences by agreement.
15. References to the Competition Commission.
16. Reports on references.
17. Modification following report.
18. Power of intervention of the Competition Commission.
19. Procedural requirements in relation to modifications.
20. Application of competition legislation to references etc.
21. Modification by order under other enactments.

Enforcement orders

22. Final orders.
23. Provisional orders.
24. Confirmation of provisional orders.
25. Exceptions from duty to make or confirm enforcement orders.
26. Enforcement orders: main procedural requirements.
27. Enforcement orders: further procedural requirements.
28. Validity of enforcement orders.
29. Effect of enforcement orders.

Financial penalties

30. Financial penalties.
31. Statement of policy in relation to penalties.
32. Imposition of penalties: main procedural requirements.
33. Penalties: further procedural requirements.
34. Time-limits on the imposition of penalties.
35. Interest and payments by instalment.
36. Appeals.
37. Recovery of penalties.

Miscellaneous

38. Register.
39. Recovery of costs of the Council etc.
40. Directors' remuneration.
41. Free services for the blind and partially sighted.

PART III

OTHER FUNCTIONS OF THE COMMISSION
AND THE COUNCIL

The Commission

42. Duties in relation to public post offices.
43. Duties in relation to social and environmental matters.
44. Review and information.
45. Annual and other reports: the Commission.
46. Publication of information and advice: the Commission.
47. Power of the Commission to require information.
48. Information powers: enforcement.
49. Powers of entry and seizure.
50. Codes of practice.

The Council

51. Relevant postal issues.
52. Provision of advice and information to public authorities and licence holders.
53. Publication of information to users.
54. Exercise of functions: general.
55. Annual and other reports: the Council.
56. Complaints referred to the Council.
57. Power of the Council to investigate other matters.
58. Power of the Council to require information.

The Commission and the Council

59. Provision of information by the Council to the Commission.
60. Memorandum of understanding.
61. Forward work programmes.

PART IV

REORGANISATION OF THE POST OFFICE

Transfer of property etc.

62. Transfer of property etc. to nominated company.

The Post Office company etc: government holdings

63. Government holding in the Post Office company and certain subsidiaries.
64. Government investment in securities of the Post Office company and its subsidiaries.

The Post Office company etc: restrictions on dealings

65. Restriction on issue of shares to third parties.
66. Restriction on disposals of shares to third parties.
67. Approved disposals.

Financial provisions

68. Loans by the Secretary of State to the Post Office company and its subsidiaries.
69. Guarantees by the Secretary of State for the Post Office company and its subsidiaries.
70. Extinguishment of certain liabilities.
71. Limit on loans and other arrangements with government.
72. Reserves of the Post Office company and its subsidiaries.
73. Statutory accounts of the Post Office company.
74. Further provisions relating to the capital structure of the Post Office company.

Dissolution of the Post Office

75. Dissolution of the Post Office.

Supplementary provisions

76. Accounts of the Secretary of State in relation to loans.
77. Publicity requirements for certain accounts and reports of the Post Office company.
78. Information requirements on the Post Office company.
79. Exercise of functions through nominees.
80. Shadow directors.
81. Tax.
82. Interpretation: Part IV.

PART V

OFFENCES IN RELATION TO POSTAL SERVICES

Offences of interfering with the mail

83. Interfering with the mail: postal operators.
84. Interfering with the mail: general.

Prohibition on sending certain articles by post

85. Prohibition on sending certain articles by post.

Additional protection for universal postal service

86. Prohibition on affixing advertisements on certain letter boxes etc.
87. Prohibition on misleading descriptions.
88. Obstruction of business of universal service providers.

PART VI

UNIVERSAL POSTAL SERVICE: SUPPLEMENTARY

Schemes and limitation of liability

89. Schemes as to terms and conditions for provision of a universal postal service.
90. Exclusion of liability.
91. Limited liability for registered inland packets.
92. Section 91: supplementary.
93. Power to modify sections 89 to 92.

Supplementary powers for universal postal service

94. Power to require carriage of mail-bags by ship or aircraft.
95. Power to acquire land etc.

Articles in transit

96. Immunity from prosecution.
97. Harbour charges on mail-bags.
98. Mail-bags not to be subject to control by harbour authorities.

Common carriers

99. Common carriers.

Certain exemptions from postage etc.

100. Certain exemptions from postage etc.

PART VII

MISCELLANEOUS AND SUPPLEMENTARY

Supplementary powers of the Secretary of State

101. Directions in interests of national security etc.
102. Power to ensure compliance with the Postal Services Directive.
103. Subsidy for public post offices.

Inviolability of mails etc.

104. Inviolability of mails.
105. Application of customs and excise enactments to certain postal packets.
106. Power to detain postal packets containing contraband.
107. Conditions of transit of postal packets.

Evidential provisions

108. Evidence of amount of postage etc.
109. Evidence of thing being a postal packet.
110. Certificates in relation to universal postal service letter boxes.

Postal and money orders

111. Exclusion of liability in relation to postal and money orders.
112. Schemes in relation to postal and money orders.
113. Recoupment of losses on wrongly paid money orders.
114. Special arrangements with other countries or territories.

Other

115. Extension of existing powers relating to the Post Office.
116. The Postcode Address File.
117. Records of the former Postmaster General's department.
118. Supplementary provisions relating to the Council.
119. General restrictions on disclosure of information.

General

120. Offences by bodies corporate.
121. Service of documents.
122. Orders and regulations.
123. Directions.
124. General financial provision.
125. Interpretation.
126. Index of defined expressions.
127. General amendments and repeals.
128. Modifications of local enactments etc.
129. Transitional provisions etc.

Final

130. Commencement.
131. Short title and extent.

SCHEDULES:

Schedule 1—The Postal Services Commission.

Schedule 2—The Consumer Council for Postal Services.

Schedule 3—Transfer to the Post Office company: supplementary provisions.

Schedule 4—Transfer to the Post Office company: tax.

Schedule 5—Acquisition of land.

Part I—Powers of acquisition etc.

Part II—Procedure, compensation etc (England and Wales).

Part III—Procedure, compensation etc (Scotland).

Part IV—Procedure, compensation etc (Northern Ireland).

Schedule 6—Further provisions relating to land.

Schedule 7—Disclosure of information.

Schedule 8—Amendments of enactments.

Part I—General amendments.

Part II—Other amendments.

Schedule 9—Repeals and revocations.

Explanatory Notes

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

PART I

INTRODUCTORY

1.—(1) There shall be a body corporate to be known as the Postal Services Commission (in this Act referred to as "the Commission").

(2) The functions of the Commission shall be performed on behalf of the Crown.

(3) Schedule 1 (which makes further provision about the Commission) shall have effect.

(4) The body which, immediately before the coming into force of this subsection, was known as the Postal Services Commission and was designated in accordance with Article 22 of the Postal Services Directive as a national regulatory authority for the postal sector in the United Kingdom is hereby abolished.

2.—(1) There shall be a body corporate to be known as the Consumer Council for Postal Services (in this Act referred to as "the Council").

(2) The Council shall not be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown and the Council's property shall not be regarded as property of, or held on behalf of, the Crown.

(3) Schedule 2 (which makes further provision about the Council) shall have effect.

(4) The Post Office Users' National Council, the Post Office Users' Council for Scotland, the Post Office Users' Council for Wales and the Post Office Users' Council for Northern Ireland are hereby abolished.

3.—(1) The Commission shall exercise its functions in the manner which it considers is best calculated to ensure the provision of a universal postal service.

(2) The Commission may, in particular, impose as a condition of a licence under Part II a requirement that the licence holder provides a universal postal service or part of such a service.

(3) Where the Commission has imposed such a condition, it may include in the licence such conditions and other provisions as it considers appropriate in relation to the provision of such a service (including conditions and other provisions about activities which do not require a licence under Part II).

4.—(1) For the purposes of this Act and subject to subsection (2), a universal postal service is provided if—

1. except in such geographical conditions or other circumstances as the Commission considers to be exceptional—
   1. at least one delivery of relevant postal packets is made every working day to the home or premises of every individual or other person in the United Kingdom or to such identifiable points for the delivery of relevant postal packets as the Commission may approve, and
   2. at least one collection of relevant postal packets is made every working day from each access point,
2. a service of conveying relevant postal packets from one place to another by post and the incidental services of receiving, collecting, sorting and delivering such packets are provided at affordable prices determined in accordance with a public tariff which is uniform throughout the United Kingdom, and
3. a registered post service is provided at such prices.

(2) For the purposes of subsection (1)—

1. the interruption, suspension or restriction of any service in cases of emergency, or
2. the conclusion with customers of individual agreements as to prices,

shall not be taken to preclude the provision of a universal postal service.

(3) References in this Act to a universal service provider shall be construed as references to any person—

1. whose identity is notified by the Secretary of State to the European Commission in accordance with Article 4 of the Postal Services Directive as that of a person providing a universal postal service or a part of such a service in the United Kingdom, and
2. on whom the Secretary of State has served a notice informing him of that fact and the fact that he will be treated as a universal service provider for the purposes of this Act.

(4) If no-one falls within subsection (3) because there is no Community obligation to notify the European Commission of the identity of a person providing a universal postal service or a part of such a service in the United Kingdom, references in this Act to a universal service provider shall be construed as references to any person who is treated by the Secretary of State as a universal service provider for the purposes of this Act and on whom the Secretary of State has served a notice informing him of that fact.

(5) The Secretary of State shall take such steps as he considers appropriate for the purpose of bringing to the attention of the public the identity of any person who is a universal service provider for the purposes of this Act.

(6) References in this Act to the provision of a universal postal service shall, in relation to a universal service provider who provides part of a universal postal service, be construed as references to the provision of that part of such a service.

(7) In this section—

5.—(1) Subject to section 3, the Commission shall exercise its functions in the manner which it considers is best calculated to further the interests of users of postal services, wherever appropriate by promoting effective competition between postal operators.

(2) In performing its duty under subsection (1), the Commission shall have regard to the interests of—

1. individuals who are disabled or chronically sick,
2. individuals of pensionable age,
3. individuals with low incomes, and
4. individuals residing in rural areas,

but that is not to be taken as implying that regard may not be had to the interests of other descriptions of users.

(3) Subject to section 3 and subsection (1), the Commission shall exercise its functions in the manner which it considers is best calculated to promote efficiency and economy on the part of postal operators.

(4) In exercising any of its functions in relation to licence holders under Part II, the Commission shall have regard to the need to ensure that such licence holders are able to finance activities authorised or required by their licences.

PART II

LICENCES FOR POSTAL SERVICES

Restriction on provision of postal services

6.—(1) Subject to section 7, no person shall convey a letter from one place to another unless—

1. he holds a licence authorising him to do so, or
2. he is acting as an employee or agent of a person who is authorised by a licence to do so.

(2) A person who contravenes subsection (1) commits an offence and shall be liable—

1. on summary conviction, to a fine not exceeding the statutory maximum,
2. on conviction on indictment, to a fine.

(3) No proceedings shall be instituted in England and Wales or Northern Ireland in respect of an offence under subsection (2) except by or on behalf of the Commission or the Secretary of State.

(4) Without prejudice to subsection (2), compliance with subsection (1) shall be enforceable by civil proceedings by or on behalf of the Commission or the Secretary of State for an injunction or interdict or for any other appropriate relief or remedy.

(5) Without prejudice to subsections (2) and (4)—

1. the obligation to comply with subsection (1) shall be a duty owed to any person who may be affected by a contravention of subsection (1), and
2. where a duty is owed by virtue of paragraph (a) to any person, any breach of that duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(6) Any reference in this section and section 7(1) to conveying a letter from one place to another, or the conveyance of a letter, includes a reference to performing, or the performance of, any of the incidental services of receiving, collecting and delivering a letter.

(7) For the purposes of this Part references to a licence are to a licence under this Part and references to a licence holder shall be construed accordingly.

7.—(1) Section 6(1) is not contravened by the conveyance of a letter—

1. which is conveyed in consideration of a payment of not less than £1 made by or on behalf of the person for whom it is conveyed, or
2. which weighs not less than 350 grams.

(2) Section 6(1) is not contravened by—

1. the conveyance and delivery of a letter personally by the sender,
2. the conveyance and delivery of a letter by a personal friend of the sender,
3. the conveyance and delivery of a single letter by a messenger sent for the purpose by either correspondent,
4. the conveyance of an overseas letter out of the United Kingdom,
5. the conveyance and delivery of any documents in respect of which a method of service other than by post is required or authorised by law,
6. the conveyance of letters from merchants who are the owners of a merchant ship or commercial aircraft, or of goods carried in such a ship or aircraft, by means of that ship or aircraft, and the delivery of the letters to the addressees by any person employed for the purpose by those merchants, provided that no payment or reward, profit or advantage of any kind is given or received for the conveyance or delivery of those letters,
7. the conveyance and delivery of letters by any person which are letters concerning, and for delivery with, goods carried by that person, provided that no payment or reward, profit or advantage of any kind is given or received for the conveyance or delivery of those letters,
8. the conveyance and delivery to a licence holder of pre-paid letters for conveyance and delivery by that person to the addressees, and the collection of such letters for that purpose,
9. the conveyance and delivery of letters by a person who has a business interest in those letters, and the collection of letters for that purpose,
10. the conveyance and delivery of banking instruments from one bank to another or from a bank to a government department, and the collection of such instruments for that purpose,
11. the collection, conveyance and delivery of coupons or other entry forms issued by authorised promoters,
12. the collection, conveyance and delivery of Christmas cards by a charity, provided that the activity concerned takes place during the period starting with 25th November in any year and ending with 1st January in the following year,
13. the conveyance and delivery of letters from one government department to another or within the same government department, and the collection of letters for that purpose,
14. the conveyance of letters of members of a document exchange from a departure facility for that exchange to an arrival facility for another document exchange by persons who are not members of either exchange, and the collection and delivery by such persons for that purpose of letters delivered to the departure facility concerned,
15. the conveyance and delivery of brokers' research, during the relevant period and by any person who has printed it, from the business premises where it is printed to the premises of any person who is to convey it onwards,
16. the conveyance and delivery by any person of brokers' research within the period of 24 hours starting with its delivery to his premises or its collection by him during the relevant period from a collection point, and any such collection.

(3) Nothing in paragraphs (a) to (g) of subsection (2) shall authorise any person to make a collection of letters for the purpose of their being conveyed in any manner authorised by those paragraphs.

(4) For the purposes of paragraph (i) of subsection (2) a person has a business interest in a letter if, and only if—

1. he is an employee of one of the correspondents or of a member of the same group as one of the correspondents and the letter relates to the business affairs of that correspondent, or
2. he and one of the correspondents are employees of the same person or of different members of the same group and the letter relates to the business affairs of that person or (as the case may be) the employer of that correspondent.

(5) In this section—

8.—(1) The Secretary of State may by order modify section 7.

(2) No such order shall be made except on the recommendation of the Commission.

(3) Before making such a recommendation, the Commission shall consult—

1. the Council,
2. licence holders, and
3. such other persons as the Commission considers appropriate.

(4) Where the Commission makes such a recommendation but the Secretary of State decides not to make an order under this section, the Secretary of State shall lay before each House of Parliament a report containing the reasons for his decision.

9.—(1) The Secretary of State may by order suspend the operation of section 6.

(2) No such order shall be made except on the recommendation of the Commission.

(3) Where the Commission makes a recommendation to make an order under this section but the Secretary of State decides not to make such an order, the Secretary of State shall lay before each House of Parliament a report containing the reasons for his decision.

10. The Secretary of State may, if he considers it expedient in the national interest, by order suspend the operation of section 6—

1. for such period not exceeding six months as may be specified in the order, and
2. to such extent as may be so specified.

Licences

11.—(1) The Commission may, on an application by a person under section 12, grant a licence to that person authorising him to do anything which—

1. would otherwise contravene section 6(1), and
2. is specified in the licence or determined by or under it.

(2) A licence shall not be valid unless it is in writing.

(3) A licence shall not be transferred.

(4) A licence shall, unless it previously ceases to have effect in accordance with its provisions, continue in force for the period specified in it or determined by or under it.

12.—(1) An application for a licence shall be made in writing to the Commission in accordance with such requirements as the Commission may specify.

(2) The Commission may, in particular, require the application to be accompanied by such reasonable application fee as it may determine.

(3) Before granting a licence the Commission shall—

1. publish a notice in such manner as the Commission considers appropriate for bringing it to the attention of persons likely to be affected by the grant,
2. serve a copy of the notice on the Council, and
3. consider any representations made in accordance with the notice and not withdrawn.

(4) The notice shall—

1. state that the Commission proposes to grant the licence and the reasons for so proposing, and
2. state the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made regarding the proposed licence.

(5) As soon as practicable after granting a licence the Commission shall send a copy of it to the Secretary of State and the Council.

13.—(1) A licence may include such provisions as the Commission considers appropriate; and a provision need not relate to anything authorised by the licence.

(2) The provisions of a licence may, in particular, require a payment to the Commission on the grant of the licence, or payments while the licence is in force, or both, of such amount or amounts as may be specified in the licence or determined by or under it.

(3) Such provisions of a licence as the Commission considers appropriate may be expressed as conditions.

(4) The Commission shall consult any person who is to be granted a licence about any conditions that the Commission proposes to include in the licence (other than any condition which the Commission is required to include in the licence by virtue of this Act).

(5) References in this Act to a condition of a licence are to a provision of a licence which is expressed as a condition.

(6) Subject to subsection (7) no action shall lie or, in Scotland, be competent in respect of a contravention by a licence holder of a condition of his licence.

(7) Subsection (6) does not affect—

1. a right of action in respect of an act or omission which takes place in the course of the provision of any postal services or the doing of anything else to which the condition relates,
2. the power to make an order under section 22 or 23, confirm an order made under section 23 or impose a penalty under section 30,
3. the duty to comply with any such order or pay any such penalty and a power to bring proceedings in respect of such a duty.

Modification of licences

14.—(1) The Commission may modify the conditions of a licence if its holder consents to the modifications.

(2) Before making modifications under this section the Commission shall—

1. give notice of the modifications, and
2. consider any representations made in accordance with the notice and not withdrawn.

(3) The notice shall state—

1. that the Commission proposes to make the modifications,
2. the effect of the modifications,
3. the reasons for the modifications, and
4. the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made in relation to the proposed modifications.

(4) A notice under subsection (2) shall be given by—

1. serving a copy of the notice on the licence holder, the Council and the Secretary of State, and
2. publishing the notice in such manner as the Commission considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(5) The Secretary of State may, within the period stated under subsection (3)(d), direct the Commission not to make any proposed modification if he considers that the modification should be made, if at all, under section 17.

(6) As soon as practicable after making modifications under this section the Commission shall send a copy of the modifications to the licence holder, the Council and the Secretary of State.

15.—(1) The Commission may make to the Competition Commission a reference requiring the Competition Commission to investigate and report on—

1. whether any matters, which are specified in the reference and which relate to the provision of postal services whose provision is authorised or required by a licence, operate against the public interest or may be expected to do so,
2. if so, whether the effects adverse to the public interest which the matters have or may be expected to have could be remedied or prevented by modifying the conditions of the licence.

(2) The Commission may at any time by notice given to the Competition Commission vary a reference by adding to the matters specified in it or by excluding from it one or more of those matters; and on receiving a notice the Competition Commission shall give effect to the variation.

(3) The Commission may, for the purpose of assisting the Competition Commission in its investigation on the reference or the reference as varied, specify in the reference or a variation of it—

1. any effects adverse to the public interest which it considers that the matters specified in the reference or variation have or may be expected to have,
2. any modifications of the conditions of the licence by which it considers that those effects could be remedied or prevented.

(4) As soon as practicable after making a reference or variation the Commission shall give notice of it by—

1. serving a copy of the reference or variation on the licence holder and the Secretary of State, and
2. publishing particulars of the reference or variation in such manner as the Commission considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.

(5) The Secretary of State may, before the end of the period of 28 days starting with the day on which he receives the copy, direct the Competition Commission not to proceed with the reference or not to give effect to the variation.

(6) The Commission shall, for the purpose of assisting the Competition Commission in carrying out an investigation on a reference under this section, give to the Competition Commission—

1. any information the Commission has which relates to matters within the scope of the investigation and which the Competition Commission requests,
2. any information the Commission has which relates to matters within the scope of the investigation and which the Commission considers that it would be appropriate for it to give without a request,
3. any other assistance which the Commission is able to give in relation to matters within the scope of the investigation and which the Competition Commission requests.

(7) In carrying out the investigation concerned the Competition Commission shall have regard to any information given under subsection (6).

(8) In deciding under this section whether a matter operates, or may be expected to operate, against the public interest the Competition Commission shall have regard to the matters as respects which duties are imposed on the Commission by sections 3 and 5.

16.—(1) In making a report on a reference under section 15 the Competition Commission—

1. shall include definite conclusions on the questions contained in the reference and such an account of its reasons for the conclusions as it considers facilitates a proper understanding of the questions and of the conclusions,
2. if it concludes that any of the matters specified in the reference operate against the public interest or may be expected to do so, shall specify the effects adverse to the public interest which the matters have or may be expected to have,
3. if it concludes that any adverse effects so specified could be remedied or prevented by modifications of the conditions of the licence, shall specify modifications by which the effects could be remedied or prevented.

(2) A report of the Competition Commission on a reference under section 15 shall be made to the Commission.

(3) The Commission—

1. shall, on receiving such a report, serve a copy on the Secretary of State, and
2. shall, after the end of the specified period and subject to subsection (4), publish the report in such manner as the Commission considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.

(4) If the Secretary of State considers that the publication of any matter would be against the public interest or any person's commercial interests, he may before the end of the specified period direct the Commission to exclude the matter from every copy of the report to be published as mentioned in subsection (3)(b).

(5) In this section "the specified period" means the period of 14 days starting with the day on which the Secretary of State receives the copy under subsection (3)(a).

17.—(1) This section applies if a report of the Competition Commission on a reference under section 15—

1. includes conclusions to the effect that any of the matters specified in the reference operate against the public interest or may be expected to do so,
2. specifies effects adverse to the public interest which the matters have or may be expected to have,
3. includes conclusions to the effect that the effects could be remedied or prevented by modifications of the conditions of the licence, and
4. specifies modifications by which the effects could be remedied or prevented.

(2) The Commission shall, subject as follows, make such modifications of the conditions of the licence as it considers are needed for the purpose of remedying or preventing the adverse effects specified in the report.

(3) Before making any such modifications, the Commission shall—

1. have regard to the modifications specified in the report,
2. give notice of its proposed modifications, and
3. consider any representations made in accordance with the notice and not withdrawn.

(4) If, after considering any such representations, the Commission decides to make any modifications for the purpose of remedying or preventing the adverse effects specified in the report, the Commission shall give notice of the modifications to the Competition Commission.

(5) If no direction is given to the Commission under section 18(2) within the period of four weeks starting with the date on which the notice under subsection (4) is given, the Commission shall make the modifications set out in the notice.

(6) If a direction is given to the Commission under section 18(2)(b) within the period of four weeks starting with the date on which the notice under subsection (4) is given, the Commission shall make the modifications which are set out in the notice and are not specified in the direction.

18.—(1) The Competition Commission may give a direction under subsection (2) if it considers that the modifications set out in a notice under section 17(4) are not the modifications which are needed for the purpose of remedying or preventing all or any of the adverse effects specified by it in the report as effects which could be remedied or prevented by modifications.

(2) The Competition Commission may direct the Commission—

1. not to make the modifications concerned, or
2. not to make such of the modifications as may be specified in the direction.

(3) Subject to subsection (4), the Competition Commission may only give a direction under subsection (2) within the period of four weeks starting with the date on which the notice under section 17(4) is given.

(4) The Secretary of State may, on the application of the Competition Commission and within the period mentioned in subsection (3), direct that the period (and, accordingly, the period mentioned in section 17(5) and (6)) shall be extended by 14 days.

(5) The Competition Commission may itself make such modifications as it considers are needed for the purpose of remedying or preventing—

1. if the direction was given under subsection (2)(a), the adverse effects specified in the report as effects which could be remedied or prevented by modifications,
2. if the direction was given under subsection (2)(b), such of those adverse effects as are not remedied or prevented by the modifications made by the Commission under section 17(6).

(6) In exercising its functions under subsection (5), the Competition Commission shall have regard to the matters to which the Commission is required to have regard when determining the conditions of a licence.

(7) The Commission shall, for the purpose of assisting the Competition Commission in exercising its functions under this section, give to the Competition Commission—

1. any information the Commission has which relates to the exercise of the functions and which the Competition Commission requests,
2. any information the Commission has which relates to the exercise of the functions and which the Commission considers that it would be appropriate for it to give without a request,
3. any other assistance which the Commission is able to give in relation to the exercise of the functions and which the Competition Commission requests.

(8) In exercising its functions under this section, the Competition Commission shall have regard to any information given under subsection (7).

19.—(1) A notice under section 17(3) shall state—

1. that the Commission proposes to make the modifications,
2. the effect of the modifications,
3. the reasons for the modifications, and
4. the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made in relation to the proposed modifications.

(2) Such a notice shall be given by—

1. serving a copy of the notice on the licence holder, and
2. publishing the notice in such manner as the Commission considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(3) A notice under section 17(4) shall state—

1. that the Commission proposes to make the modifications,
2. the effect of the modifications, and
3. the reasons for the modifications.

(4) The Commission shall include with such a notice—

1. a copy of any representations made in accordance with the notice under section 17(3) and not withdrawn, and
2. such information (including information about any change in circumstances since the report was made) as the Commission considers it desirable for the Competition Commission to have.

(5) As soon as practicable after making modifications under section 17 the Commission shall send a copy of the modifications to the licence holder, the Council and the Secretary of State.

(6) The Competition Commission shall give notice of any direction given by it under section 18(2).

(7) The notice shall state—

1. the modifications proposed by the Commission,
2. the terms of the direction, and
3. the reasons for giving it.

(8) Before making modifications under section 18(5) the Competition Commission shall—

1. give notice of the modifications, and
2. consider any representations made in accordance with the notice and not withdrawn.

(9) The notice shall state—

1. that the Competition Commission proposes to make the modifications,
2. the effect of the modifications,
3. the reasons for the modifications, and
4. the period (not less than 28 days starting with the date of publication of the notice) within which representations may be made in relation to the proposed modifications.

(10) A notice under subsection (6) or (8) shall be given by—

1. serving a copy of the notice on the licence holder, the Commission and the Secretary of State, and
2. publishing the notice in such manner as the Competition Commission considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(11) As soon as practicable after making modifications under section 18(5) the Competition Commission shall send a copy of the modifications to the licence holder, the Commission, the Council and the Secretary of State.

20.—(1) The provisions listed in subsection (2) shall apply to references under section 15 as if—

1. the functions of the Competition Commission in relation to those references were functions under the Fair Trading Act 1973 (in this section and section 21 referred to as "the 1973 Act"),
2. the expression "merger reference" included a reference under section 15 above,
3. in section 70 of the 1973 Act references to the Secretary of State were to the Commission and the reference to three months were to six months,
4. in section 93B(1) of the 1973 Act for paragraphs (a) and (b) there were substituted a reference to the Competition Commission in connection with any of its functions in relation to a reference under section 15 above.

(2) The provisions are—

1. sections 70, 85 and 93B of the 1973 Act (time limit for report; witnesses and documents; and penalties for false or misleading information),
2. section 24 of the Competition Act 1980 (modification of provisions about the Competition Commission's general functions),
3. Part II of Schedule 7 to the Competition Act 1998 (the Competition Commission's general functions).

(3) Section 82 of the 1973 Act (general provisions as to reports) shall apply to reports of the Competition Commission on references under section 15 above as it applies to reports of the Competition Commission under that Act.

(4) The provisions listed in subsection (5) shall apply to the exercise by the Competition Commission of its functions under section 18 above as if—

1. in section 85 of the 1973 Act references to any investigation on a reference made to the Competition Commission under that Act were references to any investigation for the purposes of section 18 above,
2. in section 93B(1) of the 1973 Act for paragraphs (a) and (b) there were substituted a reference to the Competition Commission in connection with any of its functions under section 18 above.

(5) The provisions are—

1. sections 85 and 93B of the 1973 Act (witnesses and documents and penalties for false or misleading information),
2. section 24 of the Competition Act 1980 (modification of provisions about the Competition Commission's general functions),
3. Part II of Schedule 7 to the Competition Act 1998 (the Competition Commission's general functions).

(6) Section 82(1) and (2) of the 1973 Act (prejudicial information and absolute privilege) shall apply to notices given by the Competition Commission under section 19(6) or (8) above as it applies to reports made by the Competition Commission under that Act.

21.—(1) This section applies if—

1. the Secretary of State by order exercises any of the powers specified in Parts I and II of Schedule 8 to the 1973 Act, and
2. the first or second requirement (set out below) is satisfied.

(2) The first requirement is that—

1. the circumstances are as mentioned in section 56(1) of the 1973 Act (order on report on monopoly reference), and
2. the monopoly situation exists in relation to the provision of postal services.

(3) The second requirement is that the circumstances are as mentioned in section 73(1) of the 1973 Act (order on report on merger reference) and—

1. at least one of the two or more enterprises which ceased to be distinct enterprises was engaged in the provision of postal services, or
2. at least one of the two or more enterprises which would cease to be distinct enterprises (in the application of section 73(1) of the 1973 Act by virtue of section 75(4)(e) of that Act) is engaged in the provision of postal services.

(4) The order mentioned in subsection (1) may also provide for the modification of the conditions of a licence to such extent as the Secretary of State considers necessary or expedient to give effect to or take account of any provision made by the order.

(5) As soon as practicable after making modifications under this section the Secretary of State shall send a copy of the modifications to the licence holder, the Commission and the Council.

(6) Expressions used in this section and the 1973 Act have the same meanings in this section as in that Act.

Enforcement orders

22.—(1) If the Commission is satisfied that a licence holder—

1. is contravening any condition of his licence, or
2. is likely to contravene any such condition,

the Commission shall by order make such provision as is needed for the purpose of securing compliance with the condition.

(2) An order under subsection (1)—

1. shall require the licence holder to do, or not to do, such things as are specified in the order or are of a description so specified,
2. shall take effect at such time, being the earliest practicable time, as is determined by or under the order, and
3. may be revoked at any time by the Commission.

(3) An order under subsection (1) shall have effect until such time (if any) as the Commission revokes it.

(4) This section is subject to section 25.

(5) In this Act "final order" means an order under this section.

23.—(1) If—

1. the Commission is not satisfied that a licence holder is contravening any condition of his licence or is likely to contravene any such condition, but
2. the requirements in subsection (2) are met,

the Commission shall by order make such provision as it considers is needed for the purpose of securing compliance with the licence condition.

(2) The requirements are that it appears to the Commission—

1. that the licence holder is contravening any condition of his licence or is likely to contravene any such condition, and
2. that an order under subsection (1) is needed.

(3) In deciding whether an order under subsection (1) is needed the Commission shall have regard, in particular, to the extent to which any person is likely to sustain loss or damage as a result of anything likely to be done or omitted in contravention of the licence condition before a final order may be made.

(4) An order under subsection (1)—

1. shall require the licence holder to do, or not to do, such things as are specified in the order or are of a description so specified,
2. shall take effect at such time, being the earliest practicable time, as is determined by or under the order, and
3. may be revoked at any time by the Commission.

(5) An order under subsection (1) shall, subject to any earlier revocation by the Commission, have effect for such period not exceeding three months as is determined by or under the order and which starts when the order takes effect.

(6) An order under subsection (1) shall not be made in any case where a previous such order has been made in respect of the same contravention or apprehended contravention by the licence holder.

(7) This section is subject to section 25.

(8) In this Act "provisional order" means an order under this section.

24.—(1) The Commission shall confirm a provisional order (with or without modifications) if—

1. it is satisfied that the licence holder is contravening any condition of his licence or is likely to contravene any such condition, and
2. it considers that confirmation of the order (with any modifications) is needed for the purpose of securing compliance with the condition.

(2) Where the Commission confirms a provisional order under subsection (1), the order continues to have effect until such time (if any) as the Commission revokes it.

(3) This section is subject to section 25.

25. The Commission shall not make a final order or make or confirm a provisional order if it is satisfied that—

1. the duties imposed on it by sections 3 and 5 preclude it from doing so,
2. the licence holder has agreed to take and is taking all the steps that the Commission considers appropriate to secure or facilitate compliance with the condition concerned, or
3. the contraventions or apprehended contraventions are trivial.

26.—(1) Before making a final order or confirming a provisional order, the Commission shall—

1. give notice of the proposed order or confirmation, and
2. consider any representations made in accordance with the notice and not withdrawn.

(2) The notice shall state—

1. that the Commission proposes to make or confirm the order,
2. the effect of the order,
3. the condition for the purpose of securing compliance with which the order is to be made or confirmed,
4. the acts or omissions which the Commission considers constitute or would constitute contraventions of that condition,
5. any other facts which the Commission considers justify the making or confirmation of the order, and
6. the period (not less than 21 days starting with the date of publication of the notice) within which representations may be made in relation to the proposed order or confirmation.

(3) A notice under subsection (1) shall be given by—

1. serving on the licence holder and the Council a copy of the notice and a copy of the order proposed (or proposed to be confirmed), and
2. publishing the notice in such manner as the Commission considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(4) As soon as practicable after making a final order, or making or confirming a provisional order, the Commission shall—

1. serve a copy of the order on the licence holder and the Council, and
2. publish the order in such manner as the Commission considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it.

(5) This section has effect subject to section 27.

27.—(1) The Commission shall not make a final order with modifications, or confirm a provisional order with modifications, unless—

1. the licence holder consents to the modifications and the Commission complies with the requirements of subsection (2), or
2. the Commission complies with the requirements of subsection (3).

(2) The requirements of this subsection are that the Commission shall—

1. give notice of the proposed modifications to the Council, and
2. consider any representations made in accordance with the notice and not withdrawn.

(3) The requirements of this subsection are that the Commission shall—

1. give notice of the proposed modifications, and
2. consider any representations made in accordance with the notice and not withdrawn.

(4) A notice under subsection (2) or (3) shall state—

1. the proposed modifications,
2. the reasons for them, and
3. the period (not less than 7 days starting with the date of the giving of the notice under subsection (2) or (as the case may be) the publication of the notice under subsection (3)) within which representations may be made in relation to the proposed modifications.

(5) Before revoking a final order or a provisional order which has been confirmed, the Commission shall—

1. give notice of the proposed revocation, and
2. consider any representations made in accordance with the notice and not withdrawn.

(6) The notice shall state—

1. that the Commission proposes to revoke the order,
2. the effect of the proposed revocation, and
3. the period (not less than 21 days starting with the date of publication of the notice) within which representations may be made in relation to the proposed revocation.

(7) As soon as practicable after revoking a final order or a provisional order which has been confirmed, the Commission shall give notice of the revocation.

(8) If, after giving notice under section 26(1) or subsection (3) or (5) of this section, the Commission decides not to make a final order or confirm a provisional order or (as the case may be) revoke the order, it shall give notice of that decision.

(9) If, after giving notice under subsection (2), the Commission decides not to make a final order or confirm a provisional order, it shall give notice of that decision to the licence holder concerned and the Council.

(10) A notice under subsection (2) shall be given by serving a copy of the notice on the Council and a notice under subsection (9) shall be given by serving a copy of the notice on the licence holder and the Council.

(11) Any other notice under this section shall be given by—

1. serving a copy of the notice on the licence holder and the Council, and
2. publishing the notice in such manner as the Commission considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

28.—(1) This section applies if a licence holder to whom a final or provisional order relates is aggrieved by the order and wants to question its validity on the ground that—

1. its making or confirmation was not within the powers conferred by section 22, 23 or (as the case may be) 24, or
2. any of the requirements of sections 26 and 27 have not been complied with in relation to the making or confirmation of the order.

(2) The licence holder may apply to the court.

(3) If a copy of the order as made or confirmed was served on the licence holder the application to the court shall be made within the period of 42 days starting with the day on which the copy was served on the licence holder.

(4) On an application under this section the court may quash the order or any provision of it if the court considers it appropriate to do so and is satisfied that—

1. the making or confirmation of the order was not within the powers conferred by section 22, 23 or (as the case may be) 24, or
2. any of the requirements of sections 26 and 27 have not been complied with in relation to the making or confirmation of the order and the interests of the licence holder have been substantially prejudiced by the non-compliance.

(5) Where an application has been made under this section, the licence holder concerned shall not be required to comply with the order to which the application relates until the application has been determined, withdrawn or otherwise dealt with; and section 29 shall be construed accordingly.

(6) Except as provided by this section, the validity of a final or provisional order shall not be questioned in any legal proceedings.

(7) In this section "the court" means,

1. in relation to England and Wales or Northern Ireland, the High Court,
2. in relation to Scotland, the Court of Session.

29.—(1) The licence holder to whom a final or provisional order relates shall have a duty to comply with it.

(2) The duty shall be owed to any person who may be affected by a contravention of the order.

(3) Any breach of the duty which causes such a person to sustain loss or damage shall be actionable by him.

(4) In any proceedings brought against a licence holder under subsection (3) it shall be a defence for the licence holder to show that he took all reasonable steps and exercised all due diligence to avoid contravening the order.

(5) Compliance with a final or provisional order shall also be enforceable by civil proceedings brought by the Commission for an injunction or for interdict or for any other appropriate relief or remedy.

(6) Subsection (5) shall not prejudice any right that a person may have by virtue of subsection (3) to bring civil proceedings for contravention or apprehended contravention of a final or provisional order.

Financial penalties

30.—(1) If the Commission is satisfied that a licence holder—

1. has contravened any condition of his licence, or
2. is contravening any such condition,

the Commission may impose on the licence holder a penalty of such amount as is reasonable.

(2) No such penalty shall exceed 10 per cent. of the turnover of the licence holder (determined in accordance with provisions specified in an order made by the Secretary of State).

(3) The Commission may impose a penalty under this section in respect of a contravention of a licence condition irrespective of whether it has made or may make a final or provisional order in respect of that contravention.

31.—(1) The Commission shall prepare and publish a statement of policy in relation to the imposition of penalties and the determination of their amount.

(2) In deciding whether to impose a penalty, and in determining the amount of any penalty, the Commission shall have regard to the statement of policy which was most recently published at the time when the contravention concerned occurred.

(3) The Commission may revise its statement of policy and, where it does so, it shall publish the revised statement.

(4) Publication under this section shall be in such manner as the Commission considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them.

(5) The Commission shall consult the Council and such other persons as it considers appropriate when preparing or revising its statement of policy.

32.—(1) Before imposing a penalty under section 30, the Commission shall—

1. give notice of the proposed penalty, and
2. consider any representations made in accordance with the notice and not withdrawn.

(2) The notice shall state—

1. that the Commission proposes to impose a penalty,
2. the amount of the proposed penalty,
3. the condition which the Commission is satisfied has been contravened or is being contravened,
4. the acts or omissions which the Commission considers constitute the contravention,
5. any other facts which the Commission considers justify the imposition of a penalty and the amount of the proposed penalty,
6. the manner in which, and place at which, it is proposed to require the penalty to be paid, and
7. the period (not less than 21 days starting with the date of publication of the notice) within which representations may be made in relation to the proposed penalty.

(3) As soon as practicable after imposing a penalty, the Commission shall give notice of the penalty.

(4) The notice shall state—

1. that the Commission has imposed a penalty on the licence holder,
2. the amount of the penalty,
3. the condition which the Commission is satisfied has been contravened or is being contravened,
4. the acts or omissions which the Commission considers constitute the contravention,
5. any other facts which the Commission considers justify the imposition of a penalty and the amount of the penalty,
6. the manner in which, and place at which, the penalty is required to be paid, and
7. the date or dates, no earlier than the end of the period of 42 days from the date of service of the notice on the licence holder, by which the penalty or (as the case may be) different portions of it are required to be paid.

(5) The licence holder may, within 21 days of the date of service on him of a notice under subsection (3), apply to the Commission for it to specify a different date or (as the case may be) different dates by which the penalty or (as the case may be) different portions of it are to be paid.

(6) A notice under this section shall be given by—

1. serving a copy of the notice on the licence holder and the Council, and
2. publishing the notice in such manner as the Commission considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(7) This section has effect subject to section 33.

33.—(1) The Commission shall not vary the proposed amount of a penalty as stated in a notice under section 32(1) unless—

1. the licence holder consents to the variation, or
2. the Commission complies with the requirements of subsection (2).

(2) The requirements are that the Commission shall—

1. give notice of the proposed variation, and
2. consider any representations made in accordance with the notice and not withdrawn.

(3) The notice shall state—

1. the proposed variation,
2. the reasons for it, and
3. the period (not less than 7 days starting with the date of publication of the notice) within which representations may be made in relation to the proposed variation.

(4) If, after giving notice under section 32(1) or subsection (2) of this section, the Commission decides not to impose a penalty, it shall give notice of that decision.

(5) A notice under this section shall be given by—

1. serving a copy of the notice on the licence holder and the Council, and
2. publishing the notice in such manner as the Commission considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

34.—(1) No penalty shall be imposed under section 30 in respect of a contravention of a licence condition—

1. where a provisional order has been made but not confirmed in respect of the contravention and no final order has been made in respect of it, unless a copy of the notice under section 32(1) has been served on the licence holder no later than six months starting with the date on which the provisional order was made,
2. where a provisional order has been confirmed or a final order made in respect of the contravention, unless a copy of the notice under section 32(1) has been served on the licence holder no later than three months starting with the date on which the order was confirmed or (as the case may be) made.

(2) No penalty shall be imposed under section 30 in respect of a contravention of a licence condition for which no provisional or final order has been made unless a copy of the notice under section 32(1) has been served on the licence holder within twelve months from the time of the contravention.

35.—(1) If the whole or any portion of a penalty is not paid by the date by which it is required to be paid, the unpaid balance from time to time shall carry interest at the rate for the time being specified in section 17 of the Judgments Act 1838 .

(2) Where an application has been made under section 32(5), the penalty shall not be required to be paid until the application has been determined, withdrawn or otherwise dealt with.

(3) If a portion of a penalty has not been paid by the date required for it, the Commission may, where it considers it appropriate to do so, require so much of the penalty as has not already been paid to be paid immediately.

36.—(1) This section applies if a licence holder on whom a penalty is imposed under section 30 is aggrieved by—

1. the imposition of the penalty,
2. the amount of the penalty, or
3. the date by which the penalty is required to be paid or (as the case may be) the different dates by which portions of the penalty are required to be paid.

(2) The licence holder may apply to the court.

(3) If a copy of the notice under section 32(3) was served on the licence holder, the application to the court shall, subject to subsection (4), be made within the period of 42 days starting with the day on which the copy was served on the licence holder.

(4) If the application relates to a decision of the Commission on an application by a licence holder under section 32(5), the application to the court shall be made within the period of 42 days starting with the day on which the licence holder is notified of the decision.

(5) On an application under this section, the court may—

1. quash the penalty,
2. substitute a penalty of such lesser amount as the court considers appropriate, or
3. in a case falling within subsection (1)(c), substitute for the date or dates imposed by the Commission an alternative date or dates,

if it considers it appropriate to do so and is satisfied of one or more of the grounds mentioned in subsection (6).

(6) The grounds are—

1. that the imposition of the penalty was not within the powers of the Commission under section 30,
2. that any of the requirements of section 32 or 33 have not been complied with in relation to the imposition of the penalty and the interests of the licence holder have been substantially prejudiced by the non-compliance,
3. that it was unreasonable of the Commission to require the penalty to be paid by the date concerned or (as the case may be) to require portions of it to be paid by the dates concerned.

(7) Where an application has been made under this section, the penalty shall not be required to be paid until the application has been determined, withdrawn or otherwise dealt with.

(8) Where the court substitutes a penalty of a lesser amount it may require the payment of interest on the substituted penalty at such rate, and from such date, as it considers appropriate.

(9) Where the court specifies as a date by which the penalty, or a portion of the penalty, is to be paid a date before the determination of the application under this section it may require the payment of interest on the penalty, or portion, from that date at such rate as it considers appropriate.

(10) Except as provided by this section, the validity of a penalty shall not be questioned in any legal proceedings.

(11) In this section "the court" means—

1. in relation to England and Wales or Northern Ireland, the High Court, and
2. in relation to Scotland, the Court of Session.

37. Where a penalty imposed under section 30, or any portion of such a penalty, has not been paid by the date on which it is required to be paid and—

1. no application relating to the penalty has been made under section 36 during the period within which such an application may be made, or
2. any such application which has been made has been determined, withdrawn or otherwise dealt with,

the Commission may recover from the licence holder any of the penalty and any interest which has not been paid; and in England and Wales and Northern Ireland such penalty and interest may be recovered as a civil debt due to the Commission.

Miscellaneous

38.—(1) The Commission shall compile and maintain a register for the purposes of this Part.

(2) The register shall be kept at such premises and in such form as the Commission considers appropriate.

(3) The Commission shall cause the following matters to be entered in the register—

1. the provisions of every licence,
2. every modification, revocation or surrender of a licence,
3. the provisions of every direction or determination made or consent or approval given under a licence,
4. the terms of every final or provisional order made or confirmed and every revocation of such an order,
5. every penalty imposed under section 30 and every notice under section 32(3).

(4) The duty in subsection (3) does not extend to anything of which the Commission is unaware.

(5) So far as practicable the Commission shall secure the exclusion from the register of any matter relating to the affairs of a person if the Commission considers that its inclusion would or might seriously and prejudicially affect the person's interests.

(6) Subsection (5) does not apply if—

1. the person concerned consents to the matter being entered in the register, or
2. the Commission considers that entering the matter in the register would be in the public interest.

(7) If the Secretary of State considers that entry of anything in the register would be against the public interest or any person's commercial interests, he may direct the Commission not to enter it.

(8) The Commission shall secure that the contents of the register are available for inspection by the public—

1. during such hours as may be specified in an order made by the Secretary of State, and
2. subject to such reasonable fees (if any) as the Commission may determine.

(9) If requested by any person to do so and subject to such reasonable fees (if any) as the Commission may determine, the Commission shall supply the person concerned with a copy (certified to be true) of the register or of an extract from it.

39. The Secretary of State may give directions to the Commission as to—

1. the inclusion in any licence of conditions requiring the payment of sums relating to the expenses of the Council, or of the Secretary of State in relation to the establishment of the Council,
2. the exercise of any power of the Commission to determine anything falling to be determined under such conditions.

40.—(1) This section applies to any licence holder which is a company.

(2) As soon as practicable after the end of each financial year of the company it shall make a statement to the Commission—

1. disclosing whether or not remuneration has been paid or become due during that financial year to the directors of the company as a result of arrangements falling within subsection (3), and
2. where such remuneration has been paid or become due, describing the arrangements and the remuneration.

(3) Arrangements fall within this subsection if they are arrangements for linking the remuneration of the directors to standards of performance—

1. specified for the company in its licence, or determined for the company by or under the licence, or
2. set or agreed to by the company,

in relation to the provision of services authorised or required by the licence.

(4) A description under subsection (2)(b) shall include—

1. a statement of when the arrangements were made,
2. a description of the standards of performance in question,
3. an explanation of the means by which the standards of performance are assessed, and
4. an explanation of how the remuneration was calculated.

(5) The statement required by subsection (2) shall also state—

1. whether or not there are in force in respect of the financial year during which the statement is made arrangements falling within subsection (3),
2. if not, whether the company intends that such arrangements will be in force at some time during that financial year,

and if there are, or it is intended that there will be, such arrangements in force the statement shall describe those arrangements.

(6) A description under subsection (5) shall—

1. include the matters mentioned in subsection (4)(a) to (c), and
2. where the arrangements described are different from any arrangements described under subsection (2)(b), state the likely effect of those differences on the remuneration of each director of the company.

(7) The statement required by subsection (2) shall be made to the Commission in such manner as may be required by the Commission.

(8) The statement required by subsection (2)—

1. shall be published by the company making the statement in such manner as it considers will secure adequate publicity for the statement, and
2. may be published by the Commission in such manner as it may consider appropriate.

(9) The duty of a company under this section applies in relation to any person who has at any time been a director of the company.

(10) In this section—

41.—(1) The Secretary of State may direct the Commission to impose, as a condition of a relevant licence, a requirement that the licence holder provide such free postal services as may be specified in the direction to such descriptions of blind or partially sighted persons as may be so specified.

(2) The requirement shall not come into force unless—

1. the Secretary of State directs the Commission to bring it into force, and
2. the Commission gives notice of the direction to the licence holder.

(3) The Secretary of State shall consult the Commission and the Council before giving any direction under this section.

(4) In this section "relevant licence" means a licence to be granted which is to require the person holding it to provide a universal postal service or part of such a service.

PART III

OTHER FUNCTIONS OF THE COMMISSION AND THE COUNCIL

The Commission

42.—(1) The Commission shall provide advice and information to the Secretary of State about—

1. the number and location of public post offices of such descriptions as the Secretary of State may specify, and
2. their accessibility to users of postal and other services.

(2) The Commission shall consult the Council before providing any advice or information under this section.

(3) In this Act "public post office" means any post office from which any postal services are provided directly to the public (whether or not together with other services).

43.—(1) The Commission shall, in exercising its functions, have regard to any guidance given by the Secretary of State under this section.

(2) The Secretary of State shall from time to time give guidance about the making by the Commission of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance.

(3) Before giving any such guidance, the Secretary of State shall consult—

1. the Commission,
2. the Council,
3. any universal service provider,
4. any licence holder under Part II who is not a universal service provider, and
5. such other persons as the Secretary of State considers appropriate.

(4) A draft of any guidance proposed to be given under this section shall be laid before each House of Parliament.

(5) Guidance shall not be given under this section until after the period of 40 days starting with—

1. the day on which the draft is laid before each House of Parliament, or
2. if the draft is laid before the House of Lords on one day and the House of Commons on another day, the later of those two days.

(6) If, before the end of that period, either House resolves that the guidance should not be given, the Secretary of State shall not give it.

(7) In reckoning any period of 40 days for the purposes of subsection (5) or (6), no account shall be taken of any time during which—

1. Parliament is dissolved or prorogued, or
2. both Houses are adjourned for more than four days.

(8) The Secretary of State shall publish any guidance given by him under this section in such manner as he considers appropriate.

44.—(1) So far as the Commission considers it practicable to do so with a view to facilitating the exercise of its functions, it shall—

1. keep under review the provision (in the United Kingdom, other member States and elsewhere) of postal services,
2. collect information about the provision (in the United Kingdom, other member States and elsewhere) of those services.

(2) The Secretary of State may give directions indicating considerations to which the Commission is to have particular regard in deciding the order of priority in which matters are to be reviewed in performing its duty under subsection (1)(a).

(3) So far as the Commission considers it practicable to do so with a view to facilitating the exercise of its functions, it shall, in particular, collect information which enables comparisons to be made between the efficiency and economy of different postal operators (whether in the United Kingdom, other member States or elsewhere).

(4) The Commission shall from time to time collect information in relation to the standards of performance achieved by—

1. any universal service provider in the provision of a universal postal service, and
2. so far as not falling within paragraph (a), licence holders under Part II in the provision of services authorised or required by their licences.

(5) The Commission may collect such information as is necessary for it to comply with a notice of the Council under section 58(1).

(6) If the Commission considers it expedient or is asked by the Secretary of State to do so, it shall provide information, advice and help to the Secretary of State regarding any matter in relation to which the Commission has a function.

45.—(1) The Commission shall, as soon as practicable after the end of each financial year, make a report to the Secretary of State on its activities during that year ("the annual report").

(2) The annual report for each year shall, in particular, include—

1. a general survey of developments in relation to matters falling within the scope of the Commission's functions,
2. a report as to the manner in which the Commission has complied with its obligations under the Postal Services Directive,
3. a report as to whether each licence holder under Part II has achieved any standards of performance specified for him in his licence, or determined for him by or under it, in relation to the provision of services authorised or required by his licence,
4. a summary of final and provisional orders made under Part II during that year, of provisional orders confirmed under that Part during that year, and penalties imposed under that Part during that year,
5. a report on the progress of the projects described in the forward work programme for that year (within the meaning of section 61),
6. a report on such other matters as the Secretary of State may from time to time require.

(3) The Secretary of State shall consult the Commission before exercising his power under subsection (2)(f) in relation to any matter.

(4) The Secretary of State shall—

1. lay a copy of each annual report before each House of Parliament, and
2. publish the report in such manner as he considers appropriate.

(5) The Commission may prepare other reports in relation to any matter falling within the scope of its functions and may publish any such report in such manner as it considers appropriate.

(6) The Commission shall send a copy of each annual or other report published under this section to the Council.

(7) So far as practicable the Commission shall secure the exclusion from any report under this section of any matter relating to the affairs of a person if the Commission considers that its inclusion would or might seriously and prejudicially affect the person's interests.

(8) Subsection (7) does not apply if—

1. the person concerned consents to inclusion of the matter in the report, or
2. the Commission considers that inclusion of the matter in the report would be in the public interest.

46.—(1) The Commission may publish such information and advice as it considers expedient to give to—

1. a universal service provider,
2. any licence holder under Part II who is not a universal service provider, or
3. users of postal services.

(2) Publication under this section shall be in such form and manner as the Commission considers appropriate.

(3) So far as practicable the Commission shall secure the exclusion of any matter relating to the affairs of a person if the Commission considers that its publication would or might seriously and prejudicially affect the person's interests.

(4) Subsection (3) does not apply if—

1. the person concerned consents to publication of the matter, or
2. the Commission considers that publication of the matter would be in the public interest.

47.—(1) The Commission may, for any relevant purpose, serve notice on any person requiring him—

1. to produce any documents which are specified or described in the notice and are in that person's custody or under his control, and
2. to produce them at a time and place so specified and to a person so specified.

(2) The Commission may, for any relevant purpose, serve notice on any person who carries on any business requiring him—

1. to supply to the Commission such information as may be specified or described in the notice, and
2. to supply it at a time and place and in a form and manner so specified and to a person so specified.

(3) The person to whom any document is produced in accordance with a notice under this section may, for any relevant purpose, copy the document so produced.

(4) No person shall be required under this section—

1. to produce any documents which he could not be compelled to produce in civil proceedings before the court, or
2. to supply any information which he could not be compelled to supply in evidence in such proceedings.

(5) Any reference in this section to the production of a document includes a reference to the production of a legible and intelligible copy of information recorded otherwise than in legible form.

(6) In this section—

48.—(1) A person commits an offence if, without reasonable excuse, he fails to do anything required of him by a notice under section 47.

(2) A person commits an offence if he intentionally obstructs or delays any person in the exercise of his powers under section 47(3).

(3) A person who commits an offence under subsection (1) or (2) shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(4) A person commits an offence if he—

1. intentionally alters, suppresses or destroys any document which he has been required to produce by a notice under section 47, or
2. in supplying any information required of him by a notice under section 47, makes any statement which he knows to be false in a material particular or recklessly makes any statement which is false in a material particular.

(5) A person who commits an offence under subsection (4) shall be liable—

1. on summary conviction, to a fine not exceeding the statutory maximum,
2. on conviction on indictment, to a fine.

(6) If a person makes default in complying with a notice under section 47, the court may, on the application of the Commission, make such order as the court considers appropriate for requiring the default to be made good.

(7) Any such order may, in particular, provide that all the costs or expenses of and incidental to the application shall be borne—

1. by the person in default, or
2. if officers of a company or other association are responsible for its default, by those officers.

(8) The reference in this section to the production of a document includes a reference to the production of a legible and intelligible copy of information recorded otherwise than in legible form; and the reference to suppressing a document includes a reference to destroying the means of reproducing information recorded otherwise than in legible form.

(9) In this section "the court"—

1. in relation to England and Wales or Northern Ireland, means the High Court, and
2. in relation to Scotland, means the Court of Session.

49.—(1) Subsection (2) applies where, on an application made by a constable or the Commission, a justice of the peace or, in Scotland, a sheriff is satisfied that there are reasonable grounds for suspecting—

1. that a person has committed an offence under section 6 ("the suspect"), and
2. that articles or documents of a particular description which are required for the purposes of an investigation of the offence are on particular premises.

(2) The justice or sheriff may issue a warrant authorising a person appointed by him ("the appointed person") to enter the premises concerned, search for the articles or documents and, subject to subsection (3), seize and remove any that he may find.

(3) A warrant issued under subsection (2) shall not authorise the seizure and removal of any postal packet, mail-bag or document to which section 104(2) applies; but any such warrant may authorise the appointed person to take copies of the cover of any such packet, bag or document that he finds.

(4) The appointed person, in the exercise of his powers under a warrant issued under this section, may if necessary use reasonable force.

(5) The appointed person, in seeking to enter any premises in the exercise of his powers under the warrant, shall, if required by or on behalf of the owner or occupier or person in charge of the premises, produce evidence of his identity, and of the warrant, before entering.

(6) Any articles or documents which have been seized and removed under a warrant issued under this section may be retained until the conclusion of proceedings against the suspect.

(7) For the purposes of this section, proceedings in relation to a suspect are concluded if—

1. he is found guilty and sentenced or otherwise dealt with for the offence,
2. he is acquitted,
3. proceedings for the offence are discontinued, or
4. it is decided not to prosecute him.

(8) In this section "premises" includes any vehicle, ship or aircraft.

50.—(1) The Commission shall prepare, and may revise, a code of practice governing the discharge by it of its functions.

(2) The Commission shall, in exercising its functions, have regard to the provisions of the code.

(3) In preparing or revising the code, the Commission shall consult—

1. the Secretary of State,
2. the Council,
3. any universal service provider,
4. any licence holder under Part II who is not a universal service provider, and
5. such other persons as the Commission considers appropriate.

(4) The Commission shall publish in such manner as it considers appropriate the code as for the time being in force.

The Council

51. In this section and sections 52 to 57—

"relevant postal issues" means the interests of users of relevant postal services in the United Kingdom and matters affecting those interests,

"relevant postal services" means any postal services provided in connection with the provision of a universal postal service and any other postal services which are provided, or authorised or required to be provided, by a licence holder under Part II in accordance with a licence under that Part,

and, for this purpose, services are provided in accordance with a licence if the licence authorises or requires them to be provided by the licence holder.

52.—(1) The Council shall—

1. provide advice and information,
2. represent the views of users of relevant postal services, and
3. make proposals,

about relevant postal issues to any person mentioned in subsection (2).

(2) Those persons are—

1. the Secretary of State, the Commission, the Competition Commission and any other public authority,
2. any universal service provider,
3. any licence holder under Part II who is not a universal service provider, and
4. any other person whose activities may affect the interests of users of relevant postal services.

(3) So far as practicable the Council shall secure that no information relating to the affairs of a person is disclosed under this section to a person mentioned in subsection (2)(b) to (d) if the Council considers that its disclosure would or might seriously and prejudicially affect the interests of the person to whom it relates.

(4) Subsection (3) does not apply to any disclosure of information to which the person to whom the information relates consents.

53.—(1) The Council shall make available to users of relevant postal services such information as it considers expedient to give to such users about—

1. relevant postal services,
2. relevant postal issues, and
3. itself and its functions.

(2) The Council may perform its function under subsection (1) by—

1. publishing information in such form and manner as the Council considers appropriate, or
2. furnishing any such information to any user of relevant postal services (whether in response to a request or otherwise).

(3) So far as practicable the Council shall secure that no information relating to the affairs of a person is disclosed under this section if the Council considers that its disclosure would or might seriously and prejudicially affect the interests of the person to whom it relates.

(4) Subsection (3) does not apply to any disclosure of information to which the person to whom the information relates consents.

54.—(1) The Council shall, in exercising its functions in relation to relevant postal services, have regard to the interests of different users of relevant postal services (including, in particular, the interests of users in different areas).

(2) The Council shall, in exercising its functions, have regard to the interests of—

1. individuals who are disabled or chronically sick,
2. individuals of pensionable age,
3. individuals with low incomes, and
4. individuals residing in rural areas,

but that is not to be taken as implying that regard may not be had to the interests of other descriptions of persons.

(3) So far as the Council considers it practicable to do so with a view to facilitating the exercise of its functions, it shall collect and keep under review information about—

1. the provision (in the United Kingdom and elsewhere) of postal services, and
2. the interests and views of users of postal services in the United Kingdom and matters affecting those interests and views.

(4) As part of the arrangements it makes for exercising its functions, the Council—

1. shall establish—
   1. a committee for Scotland,
   2. a committee for Wales, and
   3. a committee for Northern Ireland,
2. may establish other committees for any areas within Scotland, Wales or Northern Ireland, and
3. shall establish at least one committee, and may establish other committees, in relation to England (whether a committee for England or a committee for an area within England).

(5) The purposes of a committee established under subsection (4) (in this Act referred to as a "regional committee") shall be—

1. the provision of advice and information to the Council about relevant postal issues affecting the area for which it is established, and
2. such other purposes as the Council may determine.

(6) The Council shall maintain in each of England, Scotland, Wales and Northern Ireland at least one office at which users of relevant postal services may apply for information.

55.—(1) The Council shall, as soon as practicable after the end of each financial year, make a report to the Secretary of State on its activities during that year ("the annual report").

(2) The Secretary of State shall—

1. lay a copy of each annual report before each House of Parliament, and
2. publish the report in such manner as he considers appropriate.

(3) The Council may prepare other reports in relation to any matter falling within the scope of its functions and may publish any such report in such manner as it considers appropriate.

(4) A report under this section shall contain such information as may be specified in any direction given to the Council by the Secretary of State.

(5) So far as practicable the Council shall secure the exclusion from any report under this section of any matter relating to the affairs of a person if the Council considers that its inclusion would or might seriously and prejudicially affect the person's interests.

(6) Subsection (5) does not apply if the person concerned consents to inclusion of the matter in the report.

56.—(1) Where a matter which relates to the provision of relevant postal services is referred to the Council by or on behalf of a user of such services and—

1. the matter has previously been the subject of a complaint to the person providing the service concerned,
2. the complaint has not been satisfactorily resolved, and
3. the matter does not appear to the Council to be of a frivolous or vexatious nature,

the Council shall investigate the matter as it considers appropriate.

(2) Where, as the result of any such investigation, the Council considers that—

1. a condition of a licence under Part II may have been contravened,
2. the matter referred, or any other matter, is a referable matter, or
3. it is appropriate to do so,

it shall, as soon as practicable, refer the matter concerned to the Commission for its consideration.

(3) The Council and the Commission shall from time to time agree the descriptions of matters which are to be referred to the Commission and, for the purposes of subsection (2)(b), a matter is a "referable matter" if it is of a description for the time being so agreed.

57.—(1) The Council may investigate—

1. any matter (not being a matter which it is under a duty to investigate under section 56) which it considers to be a matter relating to the interests of users of relevant postal services, and
2. any matter relating to the number and location of public post offices.

(2) The Council may send a report on any matter investigated under this section to—

1. the Commission,
2. the Secretary of State,
3. the Director General of Fair Trading, or
4. any other public authority whose functions appear to the Council to be exercisable in relation to that matter.

(3) Subject to subsection (4), the Council may also—

1. send a report on any such matter to any person who appears to the Council to have an interest in the matter, and
2. publish any such report in such manner as the Council considers appropriate.

(4) So far as practicable the Council shall secure the exclusion from any report under subsection (3) of any matter relating to the affairs of a person if the Council considers that its inclusion would or might seriously and prejudicially affect the person's interests.

(5) Subsection (4) does not apply if the person concerned consents to inclusion of the matter in the report.

58.—(1) The Council may serve notice on any person mentioned in subsection (2) requiring him—

1. to supply to the Council such information specified or described in the notice as the Council may reasonably require in the exercise of its functions, and
2. to supply it at a time and place and in a form and manner so specified and to a person so specified.

(2) The persons on whom a notice under subsection (1) may be served are—

1. the Commission,
2. a universal service provider,
3. any licence holder under Part II who is not a universal service provider.

(3) In deciding whether to serve a notice under this section and the contents of any such notice, the Council shall have regard to the desirability of minimising the costs of, and any other detriment to, the person on whom the notice may be, or is to be, served.

(4) Subject to subsections (5) to (7), a person on whom a notice is served under this section shall comply with the notice.

(5) The Commission may refuse to supply information required from it by a notice under this section if subsection (7) applies.

(6) A person falling within subsection (2)(b) or (c) may refuse to supply information required from him by a notice under this section if the Commission determines that he need not comply with the notice; and the Commission may so determine if subsection (7) applies.

(7) This subsection applies if the Commission considers that—

1. the information concerned is not reasonably required by the Council in the exercise of its functions,
2. the information concerned is of a description specified in an order made by the Secretary of State, or
3. any other circumstances so specified apply.

(8) The Commission shall, if required by the Council to do so, give a statement to the Council of its reasons for—

1. a refusal to supply information under this section,
2. a determination under subsection (6),

and the Council may publish that statement in such manner as it considers appropriate.

(9) No person shall be required under this section—

1. to produce any documents which he could not be compelled to produce in civil proceedings before the court, or
2. to supply any information which he could not be compelled to supply in evidence in such proceedings.

(10) If a person makes default in complying with a notice under this section, the court may, on the application of the Council, make such order as the court considers appropriate for requiring the default to be made good.

(11) Any such order may, in particular, provide that all the costs or expenses of and incidental to the application shall be borne—

1. by the person in default, or
2. if officers of a company or other association are responsible for its default, by those officers.

(12) In this section, "the court"—

1. in relation to England and Wales or Northern Ireland, means the High Court, and
2. in relation to Scotland, means the Court of Session.

The Commission and the Council

59.—(1) The Council shall, as soon as practicable after being required to do so by the Commission, provide to the Commission such information relating to the exercise of the Commission's functions as the Commission may require.

(2) The Secretary of State may by order specify—

1. descriptions of information which the Council may refuse to provide under this section, and
2. circumstances in which the Council may refuse to provide information under this section.

(3) Where the Council refuses to provide any information under this section, it shall give notice to the Commission of the reason for its refusal and the Commission may publish that notice in such manner as it considers appropriate.

60.—(1) The Commission and the Council shall make arrangements with a view to securing—

1. co-operation and the exchange of information between them, and
2. consistent treatment of matters which affect both of them.

(2) As soon as practicable after agreement is reached on those arrangements, the Commission and the Council shall prepare a memorandum setting them out and send a copy of it to the Secretary of State.

(3) Arrangements under this section shall be kept under review by the Commission and the Council.

(4) As soon as practicable after agreement is reached on any changes to those arrangements, the Commission and the Council shall revise their memorandum and send a copy of the revised memorandum to the Secretary of State.

(5) The Secretary of State shall lay before each House of Parliament a copy of any document received by him under this section.

61.—(1) The Commission and the Council shall, before each financial year, each publish a document ("the forward work programme") containing a general description of the projects, other than those comprising routine activities in the exercise of its functions, which it plans to undertake during the year.

(2) That description shall, in particular, include—

1. the objectives of each project, and
2. an estimate of the overall expenditure which the Commission or the Council expects to incur during the year in undertaking the projects.

(3) Before publishing the forward work programme for any year, the Commission or the Council shall—

1. give notice of the draft forward work programme, and
2. consider any representations made in accordance with the notice and not withdrawn.

(4) The notice shall—

1. contain a draft of the forward work programme, and
2. specify the period within which representations may be made about the proposals contained in it.

(5) A notice under this section shall be given by—

1. serving a copy of the notice on the Secretary of State, and the Council or (as the case may be) the Commission, and
2. publishing the notice in such manner as the Commission or (as the case may be) the Council considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

PART IV

REORGANISATION OF THE POST OFFICE

Transfer of property etc.

62.—(1) On such day as the Secretary of State may by order appoint, all the property, rights and liabilities to which the Post Office was entitled or subject immediately before that day shall become by virtue of this section property, rights and liabilities of a company nominated for the purposes of this section by order of the Secretary of State.

(2) The Secretary of State may nominate for the purposes of this section any company formed and registered under the Companies Act 1985, subject to subsections (3) and (4).

(3) The Secretary of State shall consult the Post Office before nominating a company for the purposes of this section.

(4) On the appointed day the company concerned must be a company limited by shares which is wholly owned by the Crown.

(5) An order made under this section may be varied or revoked by a subsequent order at any time before any property, rights or liabilities of the Post Office vest in a company by virtue of this section.

(6) Schedule 3 (which makes supplementary provision) shall have effect.

(7) For the purposes of this Part a company shall be treated as wholly owned by the Crown at any time when each of the issued shares of the company is held by, or by a nominee of, the Treasury or the Secretary of State.

(8) In this Part—

"the appointed day" means the day appointed under this section, and

"the Post Office company" means the company nominated for the purposes of this section.

The Post Office company etc: government holdings

63.—(1) The Post Office company or any of its wholly owned subsidiaries shall issue such securities of the company or subsidiary concerned as the Secretary of State may direct.

(2) Subject to subsections (3) and (4), any such securities shall, as the Secretary of State may direct, be issued to the Treasury or the Secretary of State.

(3) If the Secretary of State gives a direction under subsection (1) for the purpose of requiring an issue of shares or share rights for which prior approval has been given in accordance with section 67, the shares or share rights concerned shall be issued to the person approved for that purpose in accordance with that section.

(4) If the Secretary of State gives a direction under subsection (1) for the purpose of requiring a relevant subsidiary to issue shares or share rights in it to the Post Office company or to another relevant subsidiary of which it is a subsidiary, the shares or share rights concerned shall be issued to the Post Office company or (as the case may be) to the other relevant subsidiary.

(5) The Secretary of State shall not give a direction under this section without the consent of the Treasury or at a time when the Post Office company is not wholly owned by the Crown.

(6) Securities to be issued in pursuance of this section shall be issued at such time or times, and (subject to subsection (7)) on such terms, as the Secretary of State may direct.

(7) Any shares issued in pursuance of this section—

1. shall be of such nominal value as the Secretary of State may direct, and
2. shall be issued as fully paid and treated for the purposes of the Companies Act 1985 or the Companies (Northern Ireland) Order 1986 as if they had been paid up by virtue of payment of their nominal value in cash.

(8) In this Part "relevant subsidiary" means any subsidiary of the Post Office company which—

1. delivers relevant postal packets in the United Kingdom,
2. collects relevant postal packets from access points in the United Kingdom,
3. receives, sorts or conveys relevant postal packets in the United Kingdom, or
4. provides a registered post service in the United Kingdom,

and any other subsidiary of the Post Office company which holds shares or share rights in, or is connected to, any such subsidiary.

(9) For the purposes of subsection (8), a subsidiary of the Post Office company is connected to another such subsidiary which falls within any of paragraphs (a) to (d) of that subsection ("the operating subsidiary") if it forms part of a chain of subsidiaries of the Post Office company which leads to the operating subsidiary and which is identified by the fact that each member of the chain holds shares or share rights in the next subsidiary in the chain.

(10) In subsection (8) "access point" and "relevant postal packets" have the same meaning as in section 4.

64.—(1) The Treasury or, with the consent of the Treasury, the Secretary of State may at any time acquire securities of the Post Office company or of any of its subsidiaries.

(2) The Secretary of State shall not, without the consent of the Treasury, dispose of any securities acquired by him in pursuance of this section.

(3) Subsection (2) does not apply to any disposal which is excepted from subsection (1) or (2) of section 66 by virtue of subsection (3) or (5) of that section.

The Post Office company etc: restrictions on dealings

65.—(1) No shares or share rights in the Post Office company shall be issued on or after the appointed day unless—

1. they are issued to the Treasury, the Secretary of State or any nominee of either of them, or
2. the issue is one for which prior approval has been given in accordance with section 67.

(2) No shares or share rights in any relevant subsidiary of the Post Office company shall be issued on or after the appointed day unless—

1. they are issued to the Treasury, the Secretary of State or any nominee of either of them,
2. they are issued to the Post Office company or any other relevant subsidiary of which the relevant subsidiary concerned is a subsidiary or any nominee of the Post Office company or of the other relevant subsidiary, or
3. the issue is one for which prior approval has been given in accordance with section 67.

66.—(1) Neither the Treasury nor the Secretary of State nor any nominee of either of them shall, on or after the appointed day, dispose of any of the issued shares or any share rights in the Post Office company or any relevant subsidiary which are held by him.

(2) Neither the Post Office company nor any subsidiary of that company nor any nominee of the company or subsidiary shall, on or after the appointed day, dispose of any of the issued shares or any share rights in a relevant subsidiary which are held by the company, subsidiary or nominee concerned.

(3) Subsection (1) does not apply in relation to any disposal by the Treasury, the Secretary of State or a nominee of either of them to any other person falling within this subsection.

(4) Subsection (2) does not apply in relation to any disposal by the Post Office company, any subsidiary of that company or any nominee of the company or subsidiary to any other person falling within this subsection.

(5) Subsections (1) and (2) do not apply in relation to any disposal for which prior approval has been given in accordance with section 67.

67.—(1) Prior approval is given in accordance with this section if the proposed issue or disposal is approved by a resolution of each House of Parliament passed on a motion moved by or on behalf of the Secretary of State.

(2) The motion shall, in particular, specify—

1. the size and nature of the proposed issue or disposal,
2. the person to whom the proposed issue or disposal is to be made, and
3. the purpose of the proposed issue or disposal.

(3) No such motion shall be moved by or on behalf of the Secretary of State in relation to a proposed issue or disposal of shares or share rights in the Post Office company unless—

1. the Post Office company has agreed to be a party to a joint venture, or another arrangement for working together with another person, which the Post Office company considers to be in its commercial interests,
2. the arrangement includes the proposed issue or disposal,
3. the Post Office company has recommended to the Secretary of State that the proposed issue or disposal take place,
4. the Secretary of State is satisfied that the proposed issue or disposal is for the purpose of securing the arrangement in question and that the arrangement is in the commercial interests of the Post Office company, and
5. the Treasury have given their consent to the proposed issue or disposal.

(4) No such motion shall be moved by or on behalf of the Secretary of State in relation to a proposed issue or disposal of shares or share rights in a relevant subsidiary unless—

1. the Post Office company or the relevant subsidiary has agreed to be a party to a joint venture, or another arrangement for working together with another person, which the Post Office company considers to be in the commercial interests of the Post Office company,
2. the arrangement includes the proposed issue or disposal,
3. the Post Office company has recommended to the Secretary of State that the proposed issue or disposal take place,
4. the Secretary of State is satisfied that the proposed issue or disposal is for the purposes of securing the arrangement in question and that the arrangement is in the commercial interests of the Post Office company, and
5. the Treasury have given their consent to the proposed issue or disposal.

Financial provisions

68.—(1) The Secretary of State may, on or after the appointed day and with the approval of the Treasury, make loans to the Post Office company or any of its subsidiaries.

(2) Interest shall be paid on loans made by the Secretary of State under this section at such rates as the Secretary of State may, with the approval of the Treasury, direct.

(3) Subject to that, the loans shall be on such terms as may be—

1. agreed between the Secretary of State and the company to which the loan is made, and
2. approved by the Treasury.

(4) The terms shall, in particular, include provision as to the times and methods of payment of the principal and interest.

(5) The power of the Secretary of State to make loans under this section includes power to make loans in currencies other than sterling.

(6) The Treasury may issue out of the National Loans Fund to the Secretary of State such sums as are necessary to enable him to make loans under this section.

(7) Such sums may be issued in sterling or, where the loan is to be in a currency other than sterling, in that currency or in sterling.

(8) Any sums received by the Secretary of State by way of repayment of, or interest on, a loan made by him under this section shall be paid into the National Loans Fund.

69.—(1) The Secretary of State may, on or after the appointed day and in such manner and on such conditions as he considers appropriate, guarantee the discharge of any financial obligation of the Post Office company or any of its subsidiaries.

(2) As soon as practicable after giving a guarantee under subsection (1), the Secretary of State shall lay a statement of the guarantee before each House of Parliament.

(3) If any sums are paid by the Secretary of State in fulfilment of a guarantee given under subsection (1), the Post Office company or the subsidiary concerned shall make to the Secretary of State, at such times and in such manner as the Secretary of State may direct—

1. payments, of such amounts as the Secretary of State may direct, in or towards repayment of the sums paid by the Secretary of State, and
2. payments of interest on what is outstanding in respect of the sums paid by the Secretary of State, at such rate as the Secretary of State may direct.

(4) If any sums are paid by the Secretary of State in fulfilment of a guarantee given under subsection (1), the Secretary of State shall—

1. lay a statement relating to the sums before each House of Parliament as soon as practicable after the end of the financial year in which the sums were paid, and
2. lay a statement before each House of Parliament as soon as practicable after the end of any subsequent financial year in which there is an outstanding liability in relation to the obligation which is the subject of the guarantee.

(5) Any statement under subsection (4) shall include a statement of—

1. any amounts received by the Secretary of State during the financial year concerned in or towards repayment of, or as interest in respect of, sums paid by him in fulfilment of any guarantee given under subsection (1), and
2. any amounts outstanding at the end of that year in respect of sums so paid by the Secretary of State.

70.—(1) The Secretary of State may, on or after the appointed day, by order extinguish all or any of the liabilities of the Post Office company or of any of its subsidiaries in respect of—

1. such sums paid by the Treasury, in fulfilment of guarantees given under section 38 of the Post Office Act 1969, as may be specified in the order, or
2. such sums paid by the Secretary of State, in fulfilment of guarantees given under section 69 of this Act, as may be specified in the order.

(2) The Secretary of State may, on or after the appointed day, by order extinguish such liabilities to him of the Post Office company or of any of its subsidiaries as may be specified in the order; but the order shall not specify liabilities which—

1. may be extinguished under subsection (1), or
2. relate to taxes, duties or fines.

(3) Before exercising any power under subsection (1) or (2) in relation to liabilities of the Post Office company, the Secretary of State shall consult that company.

(4) Before exercising any power under subsection (1) or (2) in relation to liabilities of a subsidiary of the Post Office company, the Secretary of State shall consult the Post Office company and the subsidiary.

(5) The Secretary of State may by order repeal this section.

(6) The Secretary of State shall not exercise any power conferred on him by subsection (1), (2) or (5) without the consent of the Treasury.

71.—(1) The Secretary of State and the Treasury shall exercise their powers under or by virtue of this Act so as to ensure that, on and after the appointed day, the Crown's financial arrangements with the Post Office company and any of its subsidiaries do not at any time exceed 5,000 million or such greater sum as the Secretary of State may by order specify.

(2) For the purposes of subsection (1) the Crown's financial arrangements with the Post Office company and any of its subsidiaries are the aggregate of—

1. amounts outstanding in respect of the principal of loans made under section 37 of the Post Office Act 1969,
2. amounts outstanding (otherwise than by way of interest) in respect of sums paid by the Treasury in fulfilment of guarantees given under section 38 of that Act,
3. amounts outstanding in respect of the principal of loans made under section 68 of this Act,
4. amounts outstanding (otherwise than by way of interest) in respect of sums paid by the Secretary of State in fulfilment of guarantees given under section 69 of this Act,
5. amounts outstanding in respect of the principal of debt securities issued in pursuance of section 63 of this Act, and
6. liabilities extinguished under section 70 of this Act so far as they are not replaced with corresponding liabilities.

(3) No order shall be made under subsection (1) unless a draft of it has been approved by a resolution of the House of Commons.

(4) For the purposes of this section equivalents in sterling shall be calculated as the Secretary of State considers appropriate.

72.—(1) The Secretary of State may, on or after the appointed day, give directions to the Post Office company—

1. requiring it to allocate to a reserve generally, or to a reserve for a particular purpose, or to cause any of its subsidiaries so to allocate to a reserve, either a specified amount or such amount as the Post Office company considers appropriate,
2. requiring it to re-allocate for a specified purpose, or to cause any of its subsidiaries so to re-allocate, the whole or any part of any amount previously allocated by the Post Office company or (as the case may be) subsidiary to a reserve for some other purpose, or
3. with respect to the application by the Post Office company or any of its subsidiaries of amounts allocated to a reserve in accordance with a direction under this section.

(2) Directions requiring the allocation of any amount to a reserve may provide for it to be so allocated either at a specified time or during the course of a specified period.

(3) Directions under subsection (1)(c) may, in particular, require amounts allocated to a reserve in accordance with a direction under this section to be applied as if they were profits available for distribution within the meaning of section 263(1) of the Companies Act 1985 or Article 271(1) of the Companies (Northern Ireland) Order 1986 (distributions to be made out of profits).

(4) Despite subsection (3), no part of a reserve to which amounts have been allocated in accordance with this section shall count as an undistributable reserve of the company concerned for the purposes of section 264(3)(d) of the Act of 1985 or Article 272(3)(d) of the Order of 1986 (restriction on distribution of assets).

(5) For the purpose of determining under section 264 of the Act of 1985 or Article 272 of the Order of 1986 whether the company concerned may make a distribution at any time, any amount for the time being standing to the credit of the reserve concerned (excluding any amount which by virtue of subsection (3) above is authorised to be, but has not yet been, applied as if it were profits available for distribution) shall be treated for the purposes of section 264(3)(c) of the Act of 1985 or Article 272(3)(c) of the Order of 1986 as if it were unrealised profits of the company.

(6) The Secretary of State shall consult the Post Office company before giving a direction under this section.

(7) No direction shall be given under this section without the consent of the Treasury.

73.—(1) For the purposes of any statutory accounts of the Post Office company—

1. the transfer effected by virtue of section 62 shall be taken to have been a transfer of all the property, rights and liabilities to which the Post Office was entitled or subject immediately before the end of the last accounting year of the Post Office ending before the appointed day and to have been effected immediately after the end of that year, and
2. the value or amount (as at the time of transfer) of any asset or liability of the Post Office taken to have been transferred to the Post Office company by virtue of paragraph (a) shall be taken to be the value or (as the case may be) the amount assigned to that asset or liability for the purposes of the corresponding statement of accounts prepared by the Post Office in relation to that year.

(2) For the purposes of any statutory accounts of the Post Office company the amount to be included in respect of any item shall be determined as if anything done by the Post Office (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the Post Office company.

(3) Accordingly (but without prejudice to the generality of subsection (2))—

1. the amount to be included from time to time in any reserves of the Post Office company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Post Office had been realised and retained by the Post Office company, and
2. the amount to be included from time to time in any statutory accounts of the Post Office company as representing its accumulated realised losses shall be determined as if any losses realised by the Post Office had been realised by the Post Office company.

(4) In this section "statutory accounts", in relation to the Post Office company, means any accounts of that company prepared for the purposes of any provision of the Companies Act 1985 (including group accounts).

74.—(1) If the Secretary of State so directs, the Post Office company shall be taken to have assumed a debt to the Secretary of State of such amount as may be specified in the direction.

(2) The terms of any such debt, including the terms as to the payment of interest and repayment, shall be such as the Secretary of State may from time to time determine.

(3) The Post Office company shall issue such debt securities of the company as the Secretary of State may direct; and any such securities shall, as the Secretary of State may direct, be issued to the Treasury or the Secretary of State.

(4) Debt securities to be issued in pursuance of subsection (3) shall be issued at such time or times, and on such terms, as the Secretary of State may direct.

(5) Subsections (3) and (4) are without prejudice to any power conferred by section 63.

(6) The Secretary of State may by order repeal this section.

(7) The Secretary of State—

1. shall not exercise any power under this section without the consent of the Treasury or before the appointed day, and
2. shall, before exercising any such power (other than the power under subsection (6)), consult the Post Office company.

(8) In this Part "debt securities" means any instrument creating or acknowledging indebtedness which is issued by a company including, in particular, debentures, loan stock, bonds and certificates of deposit.

Dissolution of the Post Office

75.—(1) The Post Office shall continue in existence after the appointed day until it is dissolved in accordance with this section.

(2) The Secretary of State may by order, after consulting the Post Office and the Post Office company, dissolve the Post Office on a day specified in the order.

(3) No order shall be made under subsection (2) unless the Secretary of State is satisfied that nothing further remains to be done by the Post Office under paragraph 9 of Schedule 3 or an order made under this Act.

Supplementary provisions

76.—(1) The Secretary of State shall, in respect of each financial year, prepare in such form and manner as the Treasury may direct, an account of—

1. sums issued to him under section 68(6),
2. sums received by him as mentioned in section 68(8), and
3. the disposal by him of the sums mentioned in paragraphs (a) and (b).

(2) The Secretary of State shall send the account to the Comptroller and Auditor General not later than the end of the month of November in the following financial year.

(3) The Comptroller and Auditor General shall—

1. examine, certify and report on the account, and
2. lay copies of it, together with his report, before each House of Parliament.

77.—(1) The Post Office company shall send to the Secretary of State—

1. a copy of all annual accounts of the company on which the company's auditors have made a report under section 235 of the Companies Act 1985, and
2. a copy of the auditor's report,

as soon as practicable after the report has been made.

(2) The Post Office company shall send to the Secretary of State a copy of the report prepared by its directors under section 234 of the Companies Act 1985 in relation to any year which includes the appointed day or any subsequent year as soon as practicable after the report has been approved and signed under section 234A of that Act.

(3) The Secretary of State shall lay a copy of the accounts and reports received by him under this section before each House of Parliament.

(4) In this section "annual accounts" means annual accounts (within the meaning of Part VII of the Companies Act 1985) which relate to any year which includes the appointed day or to any subsequent year.

78.—(1) The Treasury may, on or after the appointed day, serve notice on the Post Office company—

1. requiring it to supply to the Treasury such information—
   1. as the Treasury may reasonably require for the performance of their functions in relation to public sector finance, and
   2. as may be specified or described in the notice, and
2. specifying the time, place, manner and form in which any such information is to be supplied and the person to whom it is to be supplied.

(2) If a person makes default in complying with a notice under subsection (1), the court may, on the application of the Treasury, make such order as the court considers appropriate for requiring the default to be made good.

(3) Any such order may, in particular, provide that all the costs or expenses of and incidental to the application shall be borne—

1. by the person in default, or
2. if officers of a company are responsible for its default, by those officers.

(4) In this section "the court"—

1. in relation to England and Wales or Northern Ireland, means the High Court, and
2. in relation to Scotland, means the Court of Session.

79.—(1) The Treasury or, with the consent of the Treasury, the Secretary of State may for the purposes of sections 63, 64 or 74(3) and (4) appoint a person to act as the nominee, or one of the nominees, of the Treasury or the Secretary of State.

(2) In accordance with directions given by the Treasury or, with the consent of the Treasury, the Secretary of State—

1. securities may be issued in pursuance of section 63 or 74(3) and (4) to a nominee of the Treasury or the Secretary of State appointed for the purposes of that section, and
2. a nominee of the Treasury or the Secretary of State appointed for the purposes of section 64 may acquire securities in pursuance of that section.

(3) A person holding any securities or rights as a nominee of the Treasury or the Secretary of State by virtue of this section shall hold and deal with them (or any of them) on such terms and in such manner as the Treasury or, with the consent of the Treasury, the Secretary of State may direct.

80.—(1) For the purposes of the provisions of the Companies Act 1985 listed in subsection (2) neither the Treasury nor the Secretary of State shall be regarded as a shadow director of the Post Office company.

(2) The provisions are—

1. section 288 (register of directors),
2. section 305 (directors' names on correspondence etc),
3. section 317 (disclosure of interests in contracts),
4. section 320 (transactions involving directors),
5. section 323 (prohibition on dealing in share options),
6. section 324 (disclosure of shareholdings),
7. section 325 (register of directors' interests), and
8. section 330 (restriction on loans).

81. Schedule 4 (taxation provisions in relation to the transfer to the Post Office company) shall have effect.

82.—(1) In this Part—

(2) References in this Part to property, rights and liabilities of the Post Office are references to all such property, rights and liabilities, whether or not capable of being transferred or assigned by the Post Office.

(3) It is hereby declared for the avoidance of doubt that—

1. any reference in this Part to property of the Post Office is a reference to property of the Post Office whether situated in the United Kingdom or elsewhere, and
2. any reference in this Part to rights or liabilities of the Post Office is a reference to rights to which the Post Office is entitled, or (as the case may be) liabilities to which it is subject, whether under the law of the United Kingdom or of any part of the United Kingdom or under the law of any country or territory outside the United Kingdom.

PART V

OFFENCES IN RELATION TO POSTAL SERVICES

Offences of interfering with the mail

83.—(1) A person who is engaged in the business of a postal operator commits an offence if, contrary to his duty and without reasonable excuse, he—

1. intentionally delays or opens a postal packet in the course of its transmission by post, or
2. intentionally opens a mail-bag.

(2) Subsection (1) does not apply to the delaying or opening of a postal packet or the opening of a mail-bag under the authority of—

1. this Act or any other enactment (including, in particular, in pursuance of a warrant issued under any other enactment), or
2. any directly applicable Community provision.

(3) Subsection (1) does not apply to the delaying or opening of a postal packet in accordance with any terms and conditions applicable to its transmission by post.

(4) Subsection (1) does not apply to the delaying of a postal packet as a result of industrial action in contemplation or furtherance of a trade dispute.

(5) In subsection (4) "trade dispute" has the meaning given by section 244 of the Trade Union and Labour Relations (Consolidation) Act 1992 or Article 127 of the Trade Union and Labour Relations (Northern Ireland) Order 1995; and the reference to industrial action shall be construed in accordance with that Act or (as the case may be) that Order.

(6) A person who commits an offence under subsection (1) shall be liable—

1. on summary conviction, to a fine not exceeding the statutory maximum or to imprisonment for a term not exceeding six months or to both,
2. on conviction on indictment, to a fine or to imprisonment for a term not exceeding two years or to both.

84.—(1) A person commits an offence if, without reasonable excuse, he—

1. intentionally delays or opens a postal packet in the course of its transmission by post, or
2. intentionally opens a mail-bag.

(2) Subsections (2) to (5) of section 83 apply to subsection (1) above as they apply to subsection (1) of that section.

(3) A person commits an offence if, intending to act to a person's detriment and without reasonable excuse, he opens a postal packet which he knows or reasonably suspects has been incorrectly delivered to him.

(4) Subsections (2) and (3) of section 83 (so far as they relate to the opening of postal packets) apply to subsection (3) above as they apply to subsection (1) of that section.

(5) A person who commits an offence under subsection (1) or (3) shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding six months or to both.

Prohibition on sending certain articles by post

85.—(1) A person commits an offence if he sends by post a postal packet which encloses any creature, article or thing of any kind which is likely to injure other postal packets in course of their transmission by post or any person engaged in the business of a postal operator.

(2) Subsection (1) does not apply to postal packets which enclose anything permitted (whether generally or specifically) by the postal operator concerned.

(3) A person commits an offence if he sends by post a postal packet which encloses—

1. any indecent or obscene print, painting, photograph, lithograph, engraving, cinematograph film or other record of a picture or pictures, book, card or written communication, or
2. any other indecent or obscene article (whether or not of a similar kind to those mentioned in paragraph (a)).

(4) A person commits an offence if he sends by post a postal packet which has on the packet, or on the cover of the packet, any words, marks or designs which are of an indecent or obscene character.

(5) A person who commits an offence under this section shall be liable—

1. on summary conviction, to a fine not exceeding the statutory maximum,
2. on conviction on indictment, to a fine or to imprisonment for a term not exceeding twelve months or to both.

Additional protection for universal postal service

86.—(1) A person commits an offence if, without due authority, he affixes any advertisement, document, board or thing in or on any universal postal service post office, universal postal service letter box or other property belonging to, or used by, a universal service provider in connection with the provision of a universal postal service.

(2) A person commits an offence if, without due authority, he paints or in any way disfigures any such office, box or property.

(3) A person who commits an offence under subsection (1) or (2) shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(4) In this Act—

"universal postal service letter box" means any box or receptacle provided by a universal service provider for the purpose of receiving postal packets, or any class of postal packets, for onwards transmission in connection with the provision of a universal postal service, and

"universal postal service post office" includes any house, building, room, vehicle or place used for the provision of any postal services in connection with the provision of a universal postal service or a part of such a service.

87.—(1) A person commits an offence if, without the authority of the universal service provider concerned, he places or maintains in or on any house, wall, door, window, box, post, pillar or other place belonging to him or under his control, any of the following words, letters or marks—

1. the words "letter box" accompanied with words, letters or marks which signify or imply, or may reasonably lead the public to believe, that it is a universal postal service letter box, or
2. any words, letters or marks which signify or imply or may reasonably lead the public to believe that any house, building, room, vehicle or place is a universal postal service post office, or that any box or receptacle is a universal postal service letter box.

(2) A person commits an offence if, without the authority of the universal service provider concerned, he—

1. places or maintains in or on any ship, vehicle, aircraft or premises belonging to him or under his control, or
2. uses in any document in relation to himself or any other person or in relation to any ship, vehicle, aircraft or premises,

any words, letters or marks which signify or imply, or may reasonably lead the public to believe, any of the things mentioned in subsection (3).

(3) The things are—

1. that he or that other person is authorised by the universal service provider concerned to collect, receive, sort, deliver or convey postal packets in connection with the provision of a universal postal service,
2. that the ship, vehicle, aircraft or premises are used by the universal service provider concerned for the purpose of collecting, receiving, sorting, delivering or conveying postal packets in connection with the provision of a universal postal service.

(4) A person commits an offence if, without reasonable excuse, he fails to comply with a notice given to him by the universal service provider concerned requiring him—

1. to remove or efface any words, letters or marks which fall within subsection (1) or (2), or
2. to remove or close up any letter box belonging to him or under his control which has ceased to be a universal postal service letter box.

(5) A person who commits an offence under this section shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

88.—(1) A person commits an offence if, without reasonable excuse, he—

1. obstructs a person engaged in the business of a universal service provider in the execution of his duty in connection with the provision of a universal postal service, or
2. obstructs, while in any universal postal service post office or related premises, the course of business of a universal service provider.

(2) A person who commits an offence under subsection (1) shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

(3) A person commits an offence if, without reasonable excuse, he fails to leave a universal postal service post office or related premises when required to do so by a person who—

1. is engaged in the business of a universal service provider, and
2. reasonably suspects him of committing an offence under subsection (1).

(4) A person who commits an offence under subsection (3)—

1. shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale, and
2. may be removed by any person engaged in the business of a universal service provider.

(5) Any constable shall on demand remove, or assist in removing, any such person.

(6) In this section "related premises" means any premises belonging to a universal postal service post office or used together with any such post office.

PART VI

UNIVERSAL POSTAL SERVICE: SUPPLEMENTARY

Schemes and limitation of liability

89.—(1) A universal service provider may make a scheme under this section in relation to the services provided by him in connection with the provision of a universal postal service or any of those services.

(2) A scheme under this section is a scheme for determining any or all of the following (so far as not otherwise agreed)—

1. the charges which are to be imposed in respect of the services concerned,
2. the other terms and conditions which are to be applicable to the services concerned, and
3. procedures for dealing with the complaints of persons who use the services concerned.

(3) A scheme under this section may, in particular—

1. adopt such system for the determination of the charges and other terms and conditions as the universal service provider concerned considers appropriate (including determining them himself subject to any conditions and limitations provided for in the scheme),
2. specify the manner in which, time and place at which and person by whom the charges are to be paid.

(4) Subject to section 92(5) and (6), no provision may be made in any scheme under this section—

1. for limiting the liability of the universal service provider concerned for loss or damage, or
2. for amending the rules of law relating to evidence.

(5) A scheme under this section shall come into force on such day as is specified in the scheme; but no day earlier than the day after that on which the scheme has been published in the London, Edinburgh and Belfast Gazettes shall be so specified.

(6) A scheme under this section may—

1. make different provision for different cases or classes of case determined by, or in accordance with, the provisions of the scheme,
2. modify any previous scheme made under this section.

(7) Any charge payable by virtue of this section may be recovered by the universal service provider concerned and in England and Wales and Northern Ireland may be so recovered as a civil debt due to him.

(8) The production of a copy of any of the Gazettes mentioned in subsection (5) which purports to contain a scheme under this section shall be conclusive evidence in all legal proceedings of that scheme.

90.—(1) No proceedings in tort shall lie or, in Scotland, be competent against a universal service provider in respect of loss or damage suffered by any person in connection with the provision of a universal postal service because of—

1. anything done or omitted to be done in relation to any postal packet in the course of transmission by post, or
2. any omission to carry out arrangements for the collection of anything to be conveyed by post.

(2) No officer, servant, employee, agent or sub-contractor of a universal service provider shall be subject, except at the suit or instance of the provider, to any civil liability for—

1. any loss or damage in the case of which liability of the provider is excluded by subsection (1), or
2. any loss of, or damage to, an inland packet to which section 91 applies.

(3) No person engaged in or about the conveyance of postal packets and no officer, servant, employee, agent or sub-contractor of any such person shall be subject, except at the suit or instance of the universal service provider concerned, to any civil liability for—

1. any loss or damage in the case of which liability of the provider is excluded by subsection (1), or
2. any loss of, or damage to, an inland packet to which section 91 applies.

(4) In the application of subsection (1) to Scotland, the reference to proceedings in tort shall be construed in the same way as in section 43(b) of the Crown Proceedings Act 1947 .

(5) This section is subject to section 91.

91.—(1) Proceedings shall lie or, in Scotland, be competent against a universal service provider under this section, but not otherwise, in respect of relevant loss of, or relevant damage to, an inland packet in respect of which the universal service provider accepts liability under this section in pursuance of a scheme made under section 89.

(2) The references in subsection (1) to relevant loss or damage are to loss or damage so far as it is due to any wrongful act of, or any neglect or default by, an officer, servant, employee, agent or sub-contractor of the universal service provider while performing or purporting to perform in that capacity his functions in relation to the receipt, conveyance, delivery or other dealing with the packet.

(3) No proceedings shall lie or, in Scotland, be competent under this section in relation to a packet unless they are begun within the period of twelve months starting with the day on which the packet was posted.

(4) A universal service provider shall not be liable under this section in respect of a packet of any description unless such conditions (if any) as are required by a scheme under section 89 to be complied with in relation to packets of that description at the time when they are posted have been complied with in the case of the packet.

(5) For the purposes of this section and section 92 a scheme under section 89 may define a description of packet by reference to any circumstances whatever (including, in particular, the amount of any fee paid in respect of the packet in pursuance of the scheme).

(6) In this section "inland packet" means any postal packet which is posted in the United Kingdom for delivery at a place in the United Kingdom to the person to whom it is addressed.

92.—(1) Subject to subsection (3), no relief or remedy shall be available under section 91 in relation to a packet except upon a claim by the sender or the addressee of the packet.

(2) The sender or addressee concerned shall be entitled—

1. to claim any relief or remedy available under this section whether or not he is the person who has suffered the loss or damage, and
2. to give a good discharge in respect of all claims under this section in respect of the packet concerned.

(3) Where the court is satisfied, on an application by a person who is not the sender or addressee of the packet, that the sender and the addressee are unable or unwilling to enforce their reliefs or remedies under this section, the court may, upon such terms as to security, caution, costs, expenses and otherwise as the court considers appropriate, allow that other person to bring proceedings under this section in the name of the sender or the addressee of the packet.

(4) Where, by virtue of subsection (2) or (3), a person recovers any money or property which, apart from that subsection, would have been recoverable by another person, the money or property so recovered shall be held on trust for that other person.

(5) The amount recoverable in any proceedings under section 91 in relation to a packet of any description shall not exceed—

1. the market value of the packet at the time when the cause of action arises, or
2. the maximum amount payable under a scheme made under section 89 for compensating the person aggrieved in respect of a packet of that description.

(6) For the purposes of subsection (5)(a) the market value of a packet shall not include the market value of—

1. any message or information which it bears, or
2. any item which, in relation to packets of that description, is excluded from the operation of this section by a scheme under section 89.

(7) For the purposes of any proceedings under section 91, it shall be presumed, unless the contrary is shown, that loss of, or damage to, the packet was due to such conduct as is mentioned in subsection (2) of that section.

(8) In this section—

"sender", in relation to a packet, has such meaning as may be given to it by any provision of a scheme made under section 89 and relating to an inland packet to which section 91 applies,

and any reference in this section to the sender or addressee of a packet includes a reference to his personal representatives.

93.—(1) The Secretary of State may by order modify sections 89 to 92.

(2) Before making an order under subsection (1), the Secretary of State shall consult the Commission, the Council and such other persons as he considers appropriate.

Supplementary powers for universal postal service

94.—(1) A universal service provider may, for any purpose in connection with the provision of a universal postal service, require by notice the owner or operator of a relevant ship or aircraft to carry mail-bags in the ship or aircraft.

(2) In subsection (1) "relevant ship or aircraft" means any ship or aircraft which carries on regular communications between two places in the United Kingdom, one of which is not readily accessible by road.

(3) The remuneration for any services provided in pursuance of this section shall be determined—

1. by agreement between the universal service provider and the owner or operator concerned, or
2. in the absence of agreement, by the Transport Tribunal or, where both places between which the ship or aircraft carries on regular communications are in Northern Ireland, by the Department for Regional Development in Northern Ireland.

Articles in transit

96.—(1) A universal service provider and a person who is engaged in the business of such a provider shall be entitled to the same immunity from prosecution for conduct in the provision of a universal postal service and falling within subsection (2) as the provider and that person would be entitled to if the provider were a government department.

(2) The following conduct falls within this subsection—

1. possession of anything contained in a postal packet which is in the course of transmission by post where possession of it is prohibited by virtue of any enactment, and
2. failure to comply, in relation to anything contained in a postal packet which is in the course of transmission by post, with any condition or restriction imposed by virtue of any enactment in relation to its possession, conveyance or delivery.

97.—(1) No charge imposed by a harbour authority in respect of goods brought into, taken out of, or carried through a relevant harbour shall apply to goods contained in mail-bags—

1. carried by a universal service provider in connection with the provision of a universal postal service,
2. consigned by such a provider in connection with the provision of such a service to another for carriage (whether to a foreign postal administration or not), or
3. consigned by a foreign postal administration to such a provider in connection with the provision of such a service for carriage.

(2) No charge imposed by a harbour authority in respect of goods brought into, taken out of, or carried through a relevant harbour shall apply to goods contained in mail-bags which—

1. are consigned by one foreign postal administration to another, and
2. are mail-bags which, when in the United Kingdom, are in the charge of a universal service provider in connection with the provision of a universal postal service.

(3) Charges which are exigible by a harbour authority at a relevant harbour in respect of mail-bags which are carried or consigned as mentioned in subsection (1) or (2) and their contents shall not be payable before the end of the period of eight weeks starting with the day on which the bags are brought within the limits of the harbour.

(4) Subsection (3) applies despite anything in any statutory provision made with respect to the harbour authority concerned.

(5) Such charges as are mentioned in subsection (3) may be recovered by means of proceedings instituted in that behalf in any court of competent jurisdiction; but not otherwise.

(6) In this section and section 98—

(7) The reference in the definition of "relevant harbour" in subsection (6) to a harbour which, in the exercise and performance of statutory powers and duties, a harbour authority are engaged in improving, maintaining or managing shall be construed—

1. except in relation to Northern Ireland, as if it were contained in the Harbours Act 1964, and
2. in relation to Northern Ireland, as a reference to a harbour which is being improved, maintained or managed by a harbour authority—
   1. in the exercise of powers conferred by a statutory provision,
   2. in the performance of duties imposed by a statutory provision, or
   3. in the exercise and performance of powers conferred, and duties imposed, by a statutory provision.

1. carried by a universal service provider in connection with the provision of a universal postal service,
2. consigned by such a provider in the provision of such a service to another for carriage (whether to a foreign postal administration or not),
3. consigned by a foreign postal administration to such a provider in connection with the provision of such a service for carriage, or
4. consigned by one foreign postal administration to another and which, when in the United Kingdom, are in the charge of a universal service provider in connection with the provision of a universal postal service.

Common carriers

Certain exemptions from postage etc.

100.—(1) Petitions and addresses forwarded to Her Majesty or, in Northern Ireland, to the Secretary of State, by post shall be exempt from postage chargeable by a universal service provider in connection with the provision of a universal postal service.

(2) Petitions and addresses to Her Majesty which are sent by post to a member of either House of Parliament, a member of the Scottish Parliament, a member of the National Assembly for Wales or a member of the Northern Ireland Assembly shall be exempt from postage chargeable by a universal service provider in connection with the provision of a universal postal service if—

1. the petitions or addresses do not exceed 1 kilogram in weight, and
2. are sent without covers or in covers open at the sides.

(3) Petitions which are addressed to either House of Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly and are sent by post to a member of either House of Parliament, a member of the Scottish Parliament or the Clerk of the Scottish Parliament, a member of the National Assembly for Wales or (as the case may be) a member of the Northern Ireland Assembly shall be exempt from postage chargeable by a universal service provider in connection with the provision of a universal postal service if—

1. the petitions do not exceed 1 kilogram in weight, and
2. are sent without covers or in covers open at the sides.

(4) Subsection (5) applies where the postage chargeable by a universal service provider in connection with the provision of a universal postal service on a postal packet consisting of parliamentary proceedings has not been prepaid by the sender or has been insufficiently prepaid by him.

(5) No sum exceeding the amount of the postage or (as the case may be) the deficiency may be recovered by the universal service provider (whether from the sender or the addressee).

(6) In this section "parliamentary proceedings" means proceedings of either House of Parliament, the Scottish Parliament, the National Assembly for Wales or the Northern Ireland Assembly.

PART VII

MISCELLANEOUS AND SUPPLEMENTARY

Supplementary powers of the Secretary of State

101.—(1) The Secretary of State may give such directions as he considers appropriate to the Commission in relation to the exercise of its functions if he considers it necessary or expedient to do so—

1. in the interests of national security or in the interests of encouraging or maintaining the United Kingdom's relations with another country or territory,
2. in order—
   1. to discharge, or facilitate the discharge of, an international obligation,
   2. to attain, or facilitate the attainment of, any other object which the Secretary of State considers it necessary or expedient to attain in view of Her Majesty's Government in the United Kingdom being a member of an international organisation or a party to an international agreement, or
   3. to enable Her Majesty's Government in the United Kingdom to become a member of such an organisation or a party to such an agreement.

(2) Directions under subsection (1) may, in particular, require the Commission—

1. to do or not to do a particular thing, or
2. to secure that a particular thing is done or not done.

(3) The Secretary of State may, if he considers it necessary or expedient to do so for any of the purposes mentioned in subsection (1)(a) or (b), give such directions as he considers appropriate to licence holders under Part II, or to any particular licence holder under that Part, in connection with anything authorised or required by the licence or licences concerned.

(4) Directions under subsection (3) may, in particular, require a licence holder—

1. to do or not to do a particular thing, or
2. to secure that a particular thing is done or not done.

(5) Before giving a direction under subsection (1), the Secretary of State shall consult the Commission.

(6) Before giving a direction under subsection (3) to a particular licence holder (as opposed to licence holders generally or any description of licence holders), the Secretary of State shall consult the licence holder concerned.

(7) The Secretary of State—

1. shall send to the Commission a copy of any direction given under subsection (3), and
2. shall lay before each House of Parliament a copy of any direction given under this section.

(8) Subsection (7)(b) does not apply if the Secretary of State considers that the disclosure of the direction would be against the interests of national security or the interests of the United Kingdom's relations with another country or territory or against the commercial interests of any person who has not consented to the disclosure.

(9) A person shall not disclose, and is not required by any enactment or otherwise to disclose, a direction given or other thing done or omitted to be done by virtue of this section if the Secretary of State notifies him that he considers that—

1. disclosure would be against the interests of national security or the interests of the United Kingdom's relations with another country or territory, or
2. disclosure would be against the commercial interests of any person (other than the person notified) who has not consented to the disclosure.

(10) A person commits an offence if—

1. without reasonable excuse he contravenes a direction under this section, or
2. he makes a disclosure in contravention of subsection (9).

(11) A person who commits an offence under this section shall be liable—

1. on summary conviction, to a fine not exceeding the statutory maximum,
2. on conviction on indictment, to a fine or to imprisonment for a term not exceeding two years or to both.

102.—(1) This section applies if the Secretary of State—

1. considers—
   1. that a Community obligation under the Postal Services Directive is not being complied with, or
   2. that it is likely that any such obligation will not be complied with, and
2. has been unable to obtain any undertakings from any person or persons which are sufficient to satisfy him that the situation will be remedied.

(2) The Secretary of State may by order make such provision as he considers appropriate to ensure that the obligation is or will be complied with.

(3) An order under this section may, in particular—

1. confer functions on the Commission or the Council or modify their functions,
2. require any postal operator or any postal operators of a particular description to provide such postal services as are specified in or determined by or under the order,
3. specify terms and conditions on which such services are to be provided or provide for such terms and conditions to be determined by or under the order,
4. provide for the payment of sums out of money provided by Parliament for any purpose of the order,
5. provide for the enforcement of any provision of the order (including the creation of criminal offences punishable with a fine but not imprisonment).

(4) Before making an order under this section, the Secretary of State shall consult any postal operator on whom a requirement is to be imposed by virtue of the order.

(5) In deciding whether to make an order under this section the Secretary of State shall, in particular, have regard to the likely impact of the order on any business of a postal operator on whom a requirement is to be imposed by virtue of the order.

103.—(1) The Secretary of State may by order make a scheme for the making of payments for the purpose of—

1. assisting in the provision of public post offices or public post offices of a particular description, or
2. assisting in the provision of services to be provided from public post offices or public post offices of a particular description.

(2) A scheme under this section which provides for the making of payments for a purpose falling within subsection (1)(b) shall ensure that no such payments may be made unless the person deciding whether to make the payments considers that the provision of the services concerned from public post offices or public post offices of a particular description would assist in the provision of public post offices or (as the case may be) public post offices of that description.

(3) Payments under a scheme under this section shall be made by the Secretary of State or by another person out of money provided by the Secretary of State.

(4) A scheme under this section shall specify—

1. the descriptions of payments which may be made under the scheme,
2. the descriptions of persons to whom such payments may be made,
3. the person by whom such payments may be made,
4. criteria to which that person is to have regard in deciding whether to make such payments, and
5. the amounts of such payments or the basis on which such amounts are to be calculated.

(5) A scheme under this section may, in particular, provide for—

1. payments under the scheme to be made subject to conditions specified in or determined under the scheme (including conditions as to repayment),
2. the delegation of functions exercisable by virtue of the scheme (including the delegation of any discretion conferred by virtue of the scheme),
3. the modification of the functions of a body established by an enactment, or the functions of the holder of an office created by an enactment, for the purpose of enabling the person concerned to exercise any functions conferred on that person by virtue of the scheme,
4. the payment by the Secretary of State of fees to any person in respect of functions exercised by that person by virtue of the scheme.

(6) The power to make a scheme under this section shall not be exercised without the consent of the Treasury.

Inviolability of mails etc.

104.—(1) Subsection (2) applies to—

1. a postal packet,
2. anything contained in a postal packet, and
3. a mail-bag containing a postal packet,

which is not the property of the Crown but which is in the course of transmission by post.

(2) Anything to which this subsection applies shall have the same immunity from—

1. examination, or seizure or detention, under a relevant power conferred by virtue of this Act or any other enactment,
2. seizure under distress or in execution,
3. in Scotland, any diligence, and
4. retention by virtue of a lien,

as it would have if it were the property of the Crown.

(3) In subsection (2) "relevant power" means any power other than—

1. a power conferred by section 47 so far as it is exercised for any purpose connected with the investigation of an offence under section 6 or any proceedings for such an offence,
2. a power conferred under section 49,
3. a power conferred by an enactment relating to customs or excise in its application, by virtue of section 105 or any regulations made under that section, to goods contained in postal packets, or
4. a power conferred by section 106 or 107.

(4) The Secretary of State may by order modify subsection (3).

105.—(1) Subject as follows, the enactments for the time being in force in relation to customs or excise shall apply in relation to goods contained in postal packets to which this section applies which are brought into or sent out of the United Kingdom by post from or to any place outside the United Kingdom as they apply in relation to goods otherwise imported, exported or removed into or out of the United Kingdom from or to any such place.

(2) The Treasury, on the recommendation of the Commissioners of Customs and Excise and the Secretary of State, may make regulations for—

1. specifying the postal packets to which this section applies,
2. making modifications or exceptions in the application of the enactments mentioned in subsection (1) to such packets,
3. enabling persons engaged in the business of a postal operator to perform for the purposes of those enactments and otherwise all or any of the duties of the importer, exporter or person removing the goods,
4. carrying into effect any arrangement with the government or postal administration of any country or territory outside the United Kingdom with respect to foreign postal packets,
5. securing the observance of the enactments mentioned in subsection (1),
6. without prejudice to any liability of any person under those enactments, punishing any contravention of the regulations.

(3) Duties (whether of customs or excise) charged on imported goods or other charges payable in respect of postal packets to which this section applies (whether payable to a postal operator or to a foreign administration) may be recovered by the postal operator concerned and in England and Wales and Northern Ireland may be so recovered as a civil debt due to him.

(4) In any proceedings for the recovery of any charges payable as mentioned in subsection (3), a certificate of the postal operator concerned of the amount of the charges shall be evidence (and, in Scotland, sufficient evidence) of that fact.

(5) In this section "foreign postal packet" means any postal packet either posted in the United Kingdom and sent to a place outside the United Kingdom, or posted in a place outside the United Kingdom and sent to a place within the United Kingdom, or in transit through the United Kingdom to a place outside the United Kingdom.

106.—(1) A postal operator may—

1. detain any postal packet if he suspects that it may contain relevant goods,
2. forward any packet so detained to the Commissioners of Customs and Excise.

(2) In this section "relevant goods" means—

1. any goods chargeable with any duty charged on imported goods (whether a customs or an excise duty) which has not been paid or secured, or
2. any goods in the course of importation, exportation or removal into or out of the United Kingdom contrary to any prohibition or restriction for the time being in force by virtue of any enactment.

(3) Subsection (1) is without prejudice to section 105.

(4) The Commissioners may open and examine any postal packet forwarded to them under this section—

1. in the presence of the person to whom the packet is addressed, or
2. where the address on the packet is outside the United Kingdom or where subsection (5) applies, in the absence of that person.

(5) This subsection applies where—

1. the Commissioners have—
   1. left at the address on the packet notice requiring the attendance of the person concerned, or
   2. forwarded such notice by post to that address, and
2. the addressee fails to attend.

(6) If the Commissioners find any relevant goods on opening and examining a postal packet under this section, they may detain the packet and its contents for the purpose of taking proceedings in relation to them.

(7) If the Commissioners do not find any relevant goods on opening and examining a postal packet under this section, they shall—

1. deliver the packet to the addressee upon his paying any postage and other sums chargeable on it, or
2. if he is absent, forward the packet to him by post.

107.—(1) If a postal operator knows or reasonably suspects that a postal packet is being sent by post in contravention of section 85, he may—

1. refuse the transmission of the packet,
2. detain the packet and open it,
3. subject to any requirements as to additional postage or charges, return the packet to its sender or forward it to its destination,
4. destroy or otherwise dispose of the packet.

(2) Subsection (1) is without prejudice to any other powers which the postal operator may have in relation to the packet (whether under the terms and conditions applicable to its transmission by post or otherwise).

(3) The detention or disposal by a postal operator of any postal packet on the grounds of a contravention of section 85 or of any terms and conditions applicable to its transmission by post shall not exempt the sender from any proceedings which might have been taken if the packet had been delivered in due course of post.

Evidential provisions

108.—(1) The mark of—

1. a universal service provider in connection with the provision of a universal postal service, or
2. a foreign postal administration,

of any sum on any postal packet as due in respect of that packet shall, unless the contrary is shown, be sufficient proof in any legal proceedings of the liability of the packet to the sum so marked.

(2) Subsections (3) to (5) apply in relation to any legal proceedings for the recovery of postage or other sums due in respect of postal packets.

(3) In any such proceedings, the production of the packet concerned with a stamp or other endorsement on it of a universal service provider (and made in connection with the provision of a universal postal service) or of a foreign postal administration indicating that the packet—

1. has been refused or rejected,
2. is unclaimed, or
3. cannot for any other reason be delivered,

shall, unless the contrary is shown, be sufficient proof of the fact indicated.

(4) In any such proceedings, a certificate of a universal service provider that any mark, stamp or endorsement is such a mark, stamp or endorsement as is mentioned in subsection (1) or (3) shall, unless the contrary is shown, be sufficient proof of that fact.

(5) In any such proceedings, the person from whom the packet concerned purports to have come shall, unless the contrary is shown, be taken to be the sender of the packet.

109.—(1) On the prosecution of an offence under this Act (whether summarily or on indictment), evidence that any article is in the course of transmission by post, or has been accepted by a postal operator for transmission by post, shall be sufficient evidence that the article is a postal packet.

(2) In any proceedings in England and Wales for an offence under section 83 or 84 of this Act, section 27(4) of the Theft Act 1968 shall apply as it applies to proceedings for the theft of anything in the course of transmission by post.

(3) In any proceedings in Northern Ireland for an offence under section 83 or 84 of this Act, section 26(5) of the Theft Act (Northern Ireland) 1969 shall apply as it applies to proceedings for the theft of anything in the course of transmission by post.

Postal and money orders

111.—(1) No proceedings shall lie or, in Scotland, be competent against the Post Office company for any loss or damage as a result of—

1. a reasonable refusal by the Post Office company to pay a postal or money order which has been issued by it or a foreign postal administration, or
2. a reasonable delay by the Post Office company in paying any such order.

(2) Where a postal or money order issued by the Post Office company is presented for payment in the United Kingdom by a banker to whom it has been delivered for collection, payment of the order to the banker discharges it.

(3) Where a relevant uncrossed order issued by the Post Office company is presented for payment in the United Kingdom otherwise than by a banker to whom it has been delivered for collection, payment of the order to the person by whom it is presented discharges it.

(4) A postal or money order issued by the Post Office company is discharged by the payment of the order outside the United Kingdom in accordance with arrangements made by the Post Office company in that regard.

(5) Where a postal or money order issued by a foreign postal administration is paid by the Post Office company to a banker to whom it has been delivered for collection on behalf of a person other than the true owner of the order, the Post Office company shall not be liable to the true owner of the order by reason of having paid it to the banker.

(6) Where a relevant uncrossed order issued by a foreign postal administration is presented to the Post Office company for payment otherwise than by a banker to whom it has been delivered for collection or the true owner of the order, payment of the order by the Post Office company to the person presenting it shall not make the Post Office company liable to the true owner of the order.

(7) Any person acting as a banker in the United Kingdom who, in collecting in that capacity for any principal, has received payment from the Post Office company in respect of any postal order, or any document purporting to be a postal order, shall not incur liability to anyone except the principal by reason of having received the payment or having held or presented the order or document for payment.

(8) Subsection (7) does not relieve any principal for whom any such order or document has been so held or presented of any liability in respect of his possession of the order or document or of the proceeds of the order or document.

(9) In this section "relevant uncrossed order" means—

1. an uncrossed postal or money order which—
   1. is expressed to be payable to a person specified or described in the order, and
   2. is signed by or on behalf of that person or purports to be so signed, or
2. an uncrossed postal order which is not expressed to be payable to a person specified or described in the order.

(10) In this section and section 113 "banker" includes a body which carries on the business of banking.

112.—(1) The Post Office company shall not issue postal or money orders otherwise than in accordance with a scheme under this section.

(2) The Post Office company may make a scheme under this section in relation to—

1. the issue by it of postal or money orders,
2. other services provided by it in connection with postal or money orders (whether orders issued by it or otherwise).

(3) A scheme under this section is a scheme for determining any or all of the following (so far as not otherwise agreed)—

1. the charges which are to be imposed in respect of the services concerned,
2. the other terms and conditions which are to be applicable to the services concerned, and
3. procedures for dealing with the complaints of persons who use the services concerned.

(4) A scheme under this section may, in particular—

1. adopt such system for the determination of the charges and other terms and conditions as the Post Office company considers appropriate (including determining them itself subject to any conditions and limitations provided for in the scheme),
2. provide for the non-payment by the Post Office company after the end of a specified period, except on satisfaction of specified conditions, of a postal or money order issued by that company or a foreign postal administration,
3. specify the manner in which, time and place at which and person by whom the charges are to be paid.

(5) No provision may be made in any scheme under this section—

1. for limiting the liability of the Post Office company for loss or damage, or
2. for amending the rules of law relating to evidence.

(6) A scheme under this section shall come into force on such day as is specified in the scheme; but no day earlier than the day after that on which the scheme has been published in the London, Edinburgh and Belfast Gazettes shall be so specified.

(7) A scheme under this section may—

1. make different provision for different cases or classes of case determined by, or in accordance with, the provisions of the scheme,
2. modify any previous scheme made under this section.

(8) Any charge payable by virtue of this section may be recovered by the Post Office company and in England and Wales and Northern Ireland may be so recovered as a civil debt due to it.

(9) The production of a copy of any of the Gazettes mentioned in subsection (6) which purports to contain a scheme under this section shall be conclusive evidence in all legal proceedings of that scheme.

(10) The Secretary of State may by order modify this section.

113.—(1) Subsection (2) applies where—

1. a money order issued by the Post Office company or a foreign postal administration has been delivered for collection to a banker, and
2. the Post Office company has paid the order to the banker when it should not have done so.

(2) The sum paid may be deducted from sums subsequently falling to be paid by the Post Office company to the banker by way of payment of money orders so issued which have been delivered to the banker for collection.

114.—(1) References in sections 111 (other than subsection (4)), 112 and 113 to money orders issued by the Post Office company shall be construed as including references to special money orders issued by that company.

(2) For the purposes of subsection (1) special money orders are orders for the payment of money in the United Kingdom which are issued by the Post Office company in pursuance of an arrangement made with a government or postal administration of any other country or territory for the transmission, by means of orders for the payment of money, of sums of money through post offices under the charge of the Post Office company and the postal administration of the other country or territory.

(3) The reference in section 112(2)(b) to money orders shall be construed as including a reference to orders for the payment of money issued in pursuance of an arrangement of the kind mentioned in subsection (2) above by the postal administration of the other country or territory.

Other

115.—(1) In section 7(2) of the Post Office Act 1969 (powers of the Post Office) after paragraph (r) there shall be inserted—

"(s) to enter into any form of financial transaction which it considers to be expedient and which does not fall within any of the preceding paragraphs;".

(2) After section 37(1) of that Act (loans by the Secretary of State to the Post Office) there shall be inserted—

"(1A) The Secretary of State may, with the approval of the Treasury, make loans to any subsidiary of the Post Office."

(3) After section 37(2) of that Act there shall be inserted—

"(2A) The power of the Secretary of State to make loans under this section includes power to make loans in currencies other than sterling."

(4) After section 37(3) of that Act (power to issue sums out of the National Loans Fund) there shall be inserted—

"(3A) Such sums may be issued in sterling or, where the loan is to be in a currency other than sterling, in that currency or in sterling."

(5) In section 73 of the British Telecommunications Act 1981 (borrowing powers of the Post Office etc), in subsection (1)(a) and (2)(a), after "sterling" there shall, in each case, be inserted "or a currency other than sterling".

(6) In section 74(2) of that Act (limit of indebtedness of the Post Office and its subsidiaries)—

1. after sub-paragraph (i) there shall be inserted—

   "(ia) money borrowed by any other subsidiary of the Post Office under section 37(1A) of the 1969 Act;",

2. for "1,200 million" there shall be substituted "5,000 million", and
3. the words ", not exceeding 1,700 million," shall be repealed.

(7) After section 74(4) of that Act there shall be inserted—

"(4A) For the purposes of this section equivalents in sterling shall be calculated as the Secretary of State considers appropriate."

116.—(1) The owner for the time being of the Postcode Address File shall—

1. maintain the File, and
2. make the File available to any person who wishes to use it on such terms as are reasonable.

(2) Compliance with subsection (1) shall be enforceable by civil proceedings brought by the Commission for an injunction or for interdict or for any other appropriate relief or remedy.

(3) In this section—

(4) The terms which may be imposed under subsection (1)(b) include terms as to the payment of such fee (if any) as the owner considers appropriate.

117.—(1) The Secretary of State may by order vest in the Post Office company such records of the department of the Postmaster General as—

1. belong to Her Majesty in right of Her Majesty's Government in the United Kingdom, and
2. are specified in or described by the order.

(2) The Secretary of State may give such directions to the Post Office company as he considers appropriate for ensuring that any records so transferred to the Post Office company are available to the Crown for inspection and copying.

118.—(1) On such day as the Secretary of State may by order appoint ("the relevant day"), all the property, rights and liabilities to which the Post Office Users' National Council was entitled or subject immediately before that day shall become by virtue of this section property, rights and liabilities of the Council.

(2) An order made under subsection (1) may be varied or revoked by a subsequent order at any time before any property, rights or liabilities of the Post Office Users' National Council vest in the Council by virtue of this section.

(3) Paragraphs 1 and 7 of Schedule 3 apply for the purposes of this section as they apply for the purposes of section 62 with such modifications as are necessary (including the substitution for references to the Post Office and the Post Office company of references to the Post Office Users' National Council and the Council respectively).

(4) Where a person employed in the civil service of the state and seconded to the Post Office Users' National Council or a Country Council immediately before the relevant day becomes an employee of the Council on that day, his period of employment in the civil service of the state (including any part of that period spent otherwise than on secondment) counts as a period of employment with the Council for the purposes of the Employment Rights Act 1996 (and the change of employer does not affect the continuity of the period of employment for those purposes).

(5) Where a person who—

1. is employed in the civil service of the state and is seconded to the Council, and
2. immediately before his secondment to the Council was seconded to the Post Office Users' National Council or a Country Council,

becomes an employee of the Council, his period of employment in the civil service of the state (including any part of that period spent otherwise than on secondment) counts as a period of employment with the Council for the purposes of the Employment Rights Act 1996 (and the change of employer does not affect the continuity of the period of employment for those purposes).

(6) In this section "Country Council" means the Post Office Users' Council for Scotland, the Post Office Users' Council for Wales or the Post Office Users' Council for Northern Ireland.

General

120.—(1) Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of—

1. a director, manager, secretary or other similar officer of the body corporate, or
2. a person purporting to act in such a capacity,

he as well as the body corporate commits the offence and shall be liable to be proceeded against and punished accordingly.

(2) Where the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

(3) Where an offence under this Act is committed by a Scottish partnership and is proved to have been committed with the consent or connivance of a partner, he as well as the partnership commits the offence and shall be liable to be proceeded against and punished accordingly.

121.—(1) Any document required or authorised by virtue of this Act to be served on any person may be served—

1. by delivering it to him or by leaving it at his proper address or by sending it by post to him at that address,
2. if the person is a body corporate, by serving it in accordance with paragraph (a) on the secretary of the body, or
3. if the person is a partnership, by serving it in accordance with paragraph (a) on a partner or a person having the control or management of the partnership business.

(2) For the purposes of this section and section 7 of the Interpretation Act 1978 (service of documents by post) in its application to this section, the proper address of any person on whom a document is to be served shall be his last known address, except that—

1. in the case of service on a body corporate or its secretary, it shall be the address of the registered or principal office of the body,
2. in the case of service on a partnership or a partner or a person having the control or management of a partnership business, it shall be the address of the principal office of the partnership.

(3) For the purposes of subsection (2) the principal office of a company constituted under the law of a country or territory outside the United Kingdom or of a partnership carrying on business outside the United Kingdom is its principal office within the United Kingdom.

(4) Subsection (5) applies if a person to be served under this Act with any document by another has specified to that other an address within the United Kingdom other than his proper address (as determined under subsection (2)) as the one at which he or someone on his behalf will accept documents of the same description as that document.

(5) In relation to that document, that address shall be treated as his proper address for the purposes of this section and section 7 of the Interpretation Act 1978 in its application to this section, instead of that determined under subsection (2).

(6) This section does not apply to any document if rules of court make provision about its service.

(7) In this section references to serving include references to similar expressions (such as giving or sending).

122.—(1) Any power of the Secretary of State to make an order, or of the Treasury to make regulations, under this Act shall be exercisable by statutory instrument.

(2) Any power of the Secretary of State to make an order, or of the Treasury to make regulations, under this Act—

1. may be exercised so as to make different provision for different cases or descriptions of case or for different purposes,
2. includes power to make such incidental, supplementary, consequential, transitory, transitional or saving provision as the Secretary of State or (as the case may be) the Treasury considers appropriate.

(3) The power of the Secretary of State under section 9, 10, 102 or 129 (including that power as extended by this section) may be exercised by modifying any enactment comprised in or made under this Act, or any other enactment.

(4) The power of the Secretary of State under paragraph 6(1) of Schedule 8 (including that power as extended by this section) may be exercised by modifying any enactment.

(5) The power of the Secretary of State under section 8, 93, 104(4) or 112(10) as extended by this section may be exercised by modifying any enactment comprised in or made under this Act, or any other enactment.

(6) The power of the Secretary of State under section 103 as extended by this section may be exercised by modifying any enactment.

(7) The power of the Secretary of State under section 102, 103, 127(1) or 128 (including that power as extended by this section) may be exercised so as to make provision for the delegation of functions.

(8) The fact that a power is conferred by this Act does not prejudice the extent of any other power so conferred.

(9) Regulations under section 105 shall be subject to annulment in pursuance of a resolution of the House of Commons.

(10) An order under any of the following provisions shall, if made without a draft of it having been approved by a resolution of each House of Parliament, be subject to annulment in pursuance of a resolution of either House of Parliament: sections 10, 38(8), 58(7), 59(2), 70, 74, 102, 104(4) and 128 and paragraph 1(5) of Schedule 3 (including that paragraph as applied by section 118(3)), paragraph 4 of Schedule 7 and paragraph 6(1) of Schedule 8.

(11) An instrument containing an order under any of the provisions mentioned in subsection (10) which revokes, amends or re-enacts an order under any of the provisions mentioned in that subsection may (in spite of section 14 of the Interpretation Act 1978) be subject to a different procedure under that subsection from the procedure to which the instrument containing the original order was subject.

(12) No order shall be made under section 8, 9, 30(2), 93, 103, 112(10) or 127(1) unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.

(13) In this section references to enactment include references to any instrument or other document.

123.—(1) A person to whom a direction is given under this Act shall give effect to it.

(2) Any power conferred by this Act to give a direction shall include power to vary or revoke the direction.

(3) Any direction given under this Act shall be in writing.

124.—(1) There shall be paid out of money provided by Parliament—

1. any expenditure incurred by the Commission in consequence of this Act,
2. any expenditure incurred by the Treasury or the Secretary of State in consequence of this Act (apart from any expenditure to be met from the National Loans Fund), and
3. any increase attributable to this Act in the sums payable out of money so provided under any other enactment.

(2) There shall be paid out of, or into, the National Loans Fund any increase attributable to this Act in the sums so payable under any other enactment.

(3) There shall be paid into the Consolidated Fund any sums received by the Treasury, the Secretary of State or the Commission in consequence of this Act (apart from any sums required to be paid into the National Loans Fund).

125.—(1) In this Act, unless the context otherwise requires—

(2) For the purposes of the definition of "letter" in subsection (1) the reference to a communication to be conveyed and delivered otherwise than electronically shall be construed as a reference to a communication to be conveyed and delivered otherwise than—

1. by means of a telecommunication system (within the meaning of the Telecommunications Act 1984), or
2. by other means but while in electronic form.

(3) For the purposes of this Act—

1. a postal packet shall be taken to be in course of transmission by post from the time of its being delivered to any post office or post office letter box to the time of its being delivered to the addressee,
2. the delivery of a postal packet of any description to a letter carrier or other person authorised to receive postal packets of that description for the post or to a person engaged in the business of a postal operator to be dealt with in the course of that business shall be a delivery to a post office, and
3. the delivery of a postal packet—
   1. at the premises to which it is addressed or redirected, unless they are a post office from which it is to be collected,
   2. to any box or receptacle to which the occupier of those premises has agreed that postal packets addressed to persons at those premises may be delivered, or
   3. to the addressee's agent or to any other person considered to be authorised to receive the packet,

   shall be a delivery to the addressee.

(4) Any reference in this Act to a subsidiary or wholly owned subsidiary shall be construed in accordance with section 736 of the Companies Act 1985 or Article 4 of the Companies (Northern Ireland) Order 1986 .

126. In this Act, the expressions listed in the left-hand column have the meaning given by, or are to be interpreted in accordance with, the provisions listed in the right-hand column.

127.—(1) The Secretary of State may by order make such supplementary, incidental or consequential provision as he considers necessary or expedient for the general purposes, or any particular purpose, of this Act or in consequence of any provision made by or under this Act or for giving full effect to this Act or any such provision.

(2) The power conferred by subsection (1) (including that power as extended by section 122) may, in particular, be exercised by modifying any enactment, instrument or other document.

(3) No other provision of this Act restricts the power conferred by subsection (1).

(4) Schedule 8 (which contains amendments of enactments) shall have effect.

(5) Any amendment by that Schedule of an enactment comprised in subordinate legislation is without prejudice to any power to make further subordinate legislation modifying the amended enactment.

(6) Schedule 9 (which contains repeals and revocations of enactments including enactments which are already obsolete or unnecessary) shall have effect.

128.—(1) The Secretary of State may by order make such supplementary, incidental or consequential provision in relation to local enactments as he considers necessary or expedient for the general purposes, or any particular purpose, of this Act or in consequence of any provision made by or under this Act or for giving full effect to this Act or any such provision.

(2) The power conferred by subsection (1) (including that power as extended by section 122) may, in particular, be exercised by modifying any local enactment or any instrument or other document which is not an Act.

(3) No other provision of this Act restricts the power conferred by subsection (1).

(4) In this section "local enactment" means—

1. a local or private Act,
2. a public general Act relating to London,
3. an order confirmed by Parliament or brought into operation in accordance with special parliamentary procedure, or
4. an enactment in a public general Act amending anything falling within paragraphs (a) to (c).

Final

130.—(1) Parts I to VI, sections 101 to 114, sections 116 to 119 (including Schedule 7) and section 127(4) and (6) (including Schedules 8 and 9) shall come into force on such day as the Secretary of State may by order appoint; and different days may be appointed for different purposes or different areas.

(2) Section 115 shall come into force at the end of the period of two months beginning with the day on which this Act is passed.

131.—(1) This Act may be cited as the Postal Services Act 2000 .

(2) Any modification by this Act of an enactment has the same extent as the enactment modified.

(3) Subject to that, this Act extends to Northern Ireland.

(4) Sections 127(1) to (3) and 129 and this section, together with sections 122 and 125 so far as they relate to those provisions, extend to the Isle of Man and the Channel Islands (in addition to any provisions of this Act which so extend by virtue of subsection (2) above).

S C H E D U L E S

SCHEDULE 1

THE POSTAL SERVICES COMMISSION

Membership

1.—(1) The Commission shall consist of the following members—

1. a chairman appointed by the Secretary of State,
2. no fewer than three other persons appointed by the Secretary of State after consulting the chairman, and
3. the chief executive of the Commission.

(2) The members of the Commission shall be known as the Postal Service Commissioners.

(3) In this Schedule references to the appointed members of the Commission shall be construed as references to the chairman and to the members appointed under sub-paragraph (1)(b).

Terms of appointment of members

2.—(1) Subject to this Schedule, the appointed members of the Commission shall hold and vacate office in accordance with the terms of their respective appointments.

(2) The terms of their appointments shall be determined by the Secretary of State.

3.—(1) An appointment of a person to hold office as chairman or as a member appointed under paragraph 1(1)(b) shall be for a term not exceeding five years.

(2) A person holding such an office may resign his office by giving notice to the Secretary of State.

(3) The Secretary of State may remove a person from any such office on the ground of incapacity or misbehaviour.

(4) Where a person ceases to hold office as chairman or chief executive, he shall cease to be a member of the Commission.

(5) No person shall be prevented from being a member of the Commission (whether as chairman or otherwise) merely because he has previously been a member of the Commission (whether as chairman or otherwise).

Pay and remuneration of members

4.—(1) The Commission shall, if required to do so by the Secretary of State, pay its appointed members such remuneration, and such travelling and other allowances, as the Secretary of State may determine.

(2) The Commission shall, if required to do so by the Secretary of State—

1. pay to or in respect of any person who is or has been an appointed member of the Commission such pension, allowances or gratuities as the Secretary of State may determine, or
2. make such payments as the Secretary of State may determine towards provision for the payment of a pension, allowance or gratuity to or in respect of such a person.

(3) Where—

1. a person ceases to hold office as chairman or a member appointed under paragraph 1(1)(b), and
2. the Secretary of State determines that there are special circumstances which make it right for that person to receive compensation,

the Commission shall make a payment to the person by way of compensation of such amount as the Secretary of State may determine.

Staff

5.—(1) The Commission shall, after consulting the Secretary of State, appoint a person as chief executive.

(2) The appointment shall be on such terms and conditions of service as the Minister for the Civil Service may approve.

(3) The Commission may, with the approval of the Minister for the Civil Service as to numbers and terms and conditions of service, appoint such other staff as it considers appropriate.

Committees

6.—(1) The Commission may establish committees and any committee of the Commission may establish sub-committees.

(2) The members of a committee of the Commission may include persons who are not members of the Commission (and the members of a sub-committee may include persons who are not members of the committee).

Proceedings etc.

7.—(1) The Commission may regulate its own procedure (including quorum).

(2) The validity of anything done by the Commission shall not be affected by a vacancy among its members or by a defect in the appointment of a member.

8.—(1) The application of the common seal of the Commission shall be authenticated by the signature of the chief executive, another member of the Commission or some other person who has been authorised for that purpose (whether generally or specifically) by the Commission.

(2) Sub-paragraph (1) does not apply in relation to any document which is or is to be signed in accordance with the law of Scotland.

Delegation

10.—(1) Anything authorised or required to be done by the Commission may be done by—

1. any member, or member of staff, of the Commission who is authorised by the Commission for that purpose (whether generally or specifically), or
2. any committee of the Commission which has been so authorised.

(2) In sub-paragraph (1)(b) "committee of the Commission" does not include a committee whose members include any person who is not a member, or a member of staff, of the Commission.

Supplementary powers

11.—(1) The Commission has power to do anything (except borrow money) which is calculated to facilitate, or is incidental or conducive to, the performance of any of its functions.

(2) That power includes, in particular, the formation of advisory bodies.

SCHEDULE 2

THE CONSUMER COUNCIL FOR POSTAL SERVICES

Membership

1.—(1) The Council shall consist of the following members—

1. a chairman appointed by the Secretary of State,
2. the chairmen of the regional committees established under section 54(4)(a) and the chairman of any committee for England established under section 54(4)(c), and
3. such number of other persons appointed by the Secretary of State as he may from time to time determine.

(2) The Secretary of State shall consult the chairman of the Council before making an appointment or a determination under sub-paragraph (1)(c).

(3) In appointing persons under this paragraph or paragraph 2(1)(a), the Secretary of State shall have regard to the desirability of including among the members of the Council one or more persons who—

1. have experience of work among, and the special needs of, disabled people, or
2. have or have had a disability.

Committees

2.—(1) A regional committee established under section 54(4)(a) and any committee for England established under section 54(4)(c) shall consist of the following members—

1. a chairman appointed by the Secretary of State after consulting the chairman of the Council, and
2. other persons appointed by the Council.

(2) A regional committee established under section 54(4)(b) and a regional committee (other than a committee for England) established under section 54(4)(c) shall consist of the following members—

1. a chairman appointed by the Council after consulting the Secretary of State, and
2. other persons appointed by the Council.

(3) The number of persons appointed under sub-paragraph (1)(b) or (2)(b) shall not be greater than the number for the time being determined by the Council, with the approval of the Secretary of State, in relation to that committee.

3.—(1) The Council shall not—

1. establish any committee under section 54(4)(b) or (c) (other than a committee for England),
2. abolish any such committee, or
3. vary the area for which such a committee is established,

except with the approval of the Secretary of State and, subject to sub-paragraph (5), after complying with the requirements of sub-paragraphs (2) to (4).

(2) If the Council proposes to do anything mentioned in sub-paragraph (1), the Council shall—

1. after consulting the Secretary of State, publish a notice in such manner as the Council considers appropriate for bringing it to the attention of persons likely to be affected by the proposal, and
2. consider any representations made in accordance with the notice (and not withdrawn).

(3) The notice shall—

1. describe the proposal, and
2. state the period (not less than two months starting with the date of publication of the notice) within which representations may be made in relation to the proposal.

(4) The Secretary of State shall not give his approval under sub-paragraph (1) until after the expiry of the period stated in the notice.

(5) The requirements of sub-paragraphs (2) to (4) do not apply to the establishment of any committee within the period of two months beginning with the day on which section 54(4) comes into force.

4.—(1) The Council may establish other committees.

(2) Any committee of the Council may establish sub-committees.

(3) The members of a committee of the Council may include persons who are not members of the Council (and the members of a sub-committee may include persons who are not members of the committee).

Terms of appointment of members

5. Subject to this Schedule, the chairman of the Council, chairmen of regional committees established under section 54(4)(a), the chairman of any committee for England established under section 54(4)(c) and other members of the Council shall hold and vacate office in accordance with the terms of their respective appointments.

6.—(1) A person holding office as chairman of the Council, chairman of a regional committee established under section 54(4)(a), chairman of any committee for England established under section 54(4)(c) or other member of the Council may resign his office by giving notice to the Secretary of State.

(2) The Secretary of State may remove a person from any such office on the ground of incapacity or misbehaviour.

(3) Where a person ceases to hold office as chairman of the Council or of a regional committee established under section 54(4)(a) or of any committee for England established under section 54(4)(c), he shall cease to be a member of the Council.

(4) No person shall be prevented from being a member of the Council (whether as chairman or otherwise) merely because he has previously been a member of the Council (whether as chairman or otherwise).

Pay and remuneration of members

7.—(1) The Council shall pay the chairman and other members of the Council such remuneration, and such travelling and other allowances, as the Secretary of State may determine.

(2) The Council may—

1. with the approval of the Secretary of State, pay any member of a committee or sub-committee who is not a member of the Council such remuneration, and
2. pay any member of a committee or sub-committee such travelling and other allowances,

as the Council may determine.

(3) The Council may, with the approval of the Secretary of State—

1. pay to or in respect of any person who is or has been a chairman or other member of the Council or of a committee or sub-committee such pension, allowances or gratuities as the Council may, with the approval of the Secretary of State, determine, or
2. make such payments as the Council may, with the approval of the Secretary of State, determine towards provision for the payment of a pension, allowance or gratuity to or in respect of such a person.

(4) Where—

1. a person ceases to hold office as chairman or other member of the Council or of a committee or sub-committee, and
2. the Council, with the approval of the Secretary of State, determines that there are special circumstances which make it right for that person to receive compensation,

the Council may make a payment to the person by way of compensation of such amount as it may, with the approval of the Secretary of State, determine.

Staff

8.—(1) The Council shall, after consulting the Secretary of State, appoint a person as principal officer.

(2) The appointment shall be on such terms and conditions of service as the Secretary of State may approve.

(3) The Council may, with the approval of the Secretary of State as to numbers and terms and conditions of service, appoint such other staff as it considers appropriate.

9.—(1) The persons to whom section 1 of the Superannuation Act 1972 applies (persons to or in respect of whom benefits may be provided by schemes under that section) shall include the staff of the Council.

(2) The Council shall pay to the Minister for the Civil Service, at such times as he may direct, such sums as he may determine in respect of any increase attributable to sub-paragraph (1) in the sums payable out of money provided by Parliament under the Superannuation Act 1972.

Proceedings etc.

10.—(1) The Council may regulate its own procedure (including quorum).

(2) The validity of anything done by the Council shall not be affected by a vacancy among its members or by a defect in the appointment of a member.

11.—(1) The application of the common seal of the Council shall be authenticated by the signature of the principal officer, the chairman or a member of the Council, or some other person who has been authorised for that purpose (whether generally or specifically) by the Council.

(2) Sub-paragraph (1) does not apply in relation to any document which is or is to be signed in accordance with the law of Scotland.

12. A document purporting to be duly executed under the seal of the Council, or signed on its behalf, shall be received in evidence and, unless the contrary is proved, be taken to be so executed or signed.

Delegation

13. Anything authorised or required to be done by the Council may be done by—

1. any member, or member of staff, of the Council who is authorised by the Council for that purpose (whether generally or specifically), or
2. any committee of the Council which has been so authorised.

Supplementary powers

14. The Council has power to do anything (except borrow money) which is calculated to facilitate, or is incidental or conducive to, the performance of any of its functions.

Accounts and expenses

15. The Council shall comply with any notice given to it by the Secretary of State with the approval of the Treasury requiring it to perform duties of a financial nature specified in the notice.

16.—(1) The Council shall prepare, in respect of each financial year, a statement of accounts giving a true and fair view of the state of affairs and the income and expenditure of the Council.

(2) The statement of accounts shall comply with any requirement notified to the Council by the Secretary of State with the approval of the Treasury.

(3) The Council shall send a copy of each statement of accounts prepared under this paragraph to the Secretary of State and to the Comptroller and Auditor General within such period after the end of the financial year to which it relates as the Secretary of State may specify by notice given to the Council.

(4) The Comptroller and Auditor General shall—

1. examine, certify and report on each statement of accounts received by him under sub-paragraph (3), and
2. lay a copy of each such statement of accounts, and of his report on it, before each House of Parliament.

17. The Secretary of State may pay such amounts in respect of the expenses of the Council as he may determine.

SCHEDULE 3

TRANSFER TO THE POST OFFICE COMPANY: SUPPLEMENTARY PROVISIONS

General provisions as to vesting of property etc.

1.—(1) Anything (including any legal proceedings) which, immediately before the appointed day, is in the process of being done by or in relation to the Post Office may, so far as it relates to anything transferred by virtue of section 62, be continued by or in relation to the Post Office company.

(2) Anything done (or having effect as if done) by or in relation to the Post Office for the purposes of or in connection with anything transferred by virtue of section 62 shall, if in force immediately before the appointed day, have effect as if done by or in relation to the Post Office company in so far as that is required for continuing its effect on or after the appointed day.

(3) The transfer effected by virtue of section 62 does not affect the validity of anything done (or having effect as if done) by or in relation to the Post Office before the appointed day.

(4) Any agreement (whether or not in writing), or any document other than an agreement or enactment, which was made before the appointed day shall have effect, so far as may be necessary for the purposes of, or in consequence of, the transfer effected by virtue of section 62 as if—

1. any references (including references which are to be construed as such references) to the Post Office were references to the Post Office company, and
2. any references (including references which are to be construed as such references) to an employee or other person serving the Post Office in a specified capacity were references to such a person as the Post Office company may appoint or, in default of appointment, to a person with corresponding functions serving the Post Office company.

(5) The Secretary of State may by order provide for any provision of sub-paragraphs (1) to (4) not to apply, or to apply with modifications, in such cases or descriptions of case as he considers appropriate.

(6) Sub-paragraphs (1) to (4) are subject to any provision made by or under this Act.

Pensions

2.—(1) The Post Office company shall, on and after the appointed day, be liable to make payments of the same descriptions as the descriptions of payments which, immediately before that day, the Post Office was liable to make under sections 44 and 46 of the Post Office Act 1969 (pension payments for certain former civil servants).

(2) Sub-paragraph (1) is without prejudice to the generality of the transfer effected by virtue of section 62.

3. Section 6(2) of the Commonwealth Telegraphs Act 1949(which provides for the making of regulations with respect to the payment of pensions to, or in respect of, employees of Cable and Wireless Limited) shall have effect as if, in paragraph (c) and sub-paragraphs (iv), (v) and (vi) of paragraph (d), references which include references to the successor company (within the meaning of the Telecommunications Act 1984) included references to the Post Office company.

4.—(1) Trustees appointed by the Post Office company shall hold moneys held immediately before the appointed day by virtue of section 47(10) of the Post Office Act 1969 (moneys paid to the Post Office to meet certain pension liabilities), and any sums accruing as a result of the investment of such money, on such relevant trusts as the Post Office company may declare.

(2) For the purposes of sub-paragraph (1)—

1. the persons who were trustees appointed by the Post Office for the purposes of section 47 of the Act of 1969 immediately before the appointed day shall be treated, on and after that day, as if they are the first trustees appointed by the Post Office company, and
2. the trusts (as modified by paragraph 1 of this Schedule and with the substitution of references to paragraph 2 of this Schedule for references to sections 44 and 46 of the Act of 1969) on which the moneys were held by them immediately before the appointed day for the purposes of section 47 of the Act of 1969 shall be treated, on and after the appointed day, as if they are the first relevant trusts declared by the Post Office company.

(3) Subject to that, for the purposes of sub-paragraph (1), trusts are relevant trusts if their objects consist in—

1. the payment, or the making of provision for the payment, of pensions, allowances and gratuities to, or in respect of, such persons engaged in the business of the Post Office company or any company associated with the Post Office company as may be specified in the trusts, and
2. the reimbursement of the Post Office company for sums paid under paragraph 2,

and include the objects of the first relevant trusts.

Welfare funds

5.—(1) This paragraph applies to—

1. a fund (whether described as a welfare fund, benevolent fund, mutual aid fund or otherwise) whose objects consist in, or include, the provision of benefits in case of need, sickness or distress for Post Office beneficiaries, and
2. a society or organisation (however described) whose objects are similar.

(2) In sub-paragraph (1) "Post Office beneficiaries" means any or all of the following persons—

1. persons who are, or have been, engaged in the business of the Post Office,
2. the relatives or dependants of such persons.

(3) The provisions of the trust deed, rules, regulations or other instrument constituting or regulating a fund, society or organisation to which this paragraph applies may, by resolution of the managers of the fund, society or organisation, be altered as mentioned in sub-paragraph (4).

(4) The provisions may be altered so as—

1. to permit persons who are, or have been, engaged in the business of the Post Office company, or such persons of a particular description, to become members of, or subscribers to, the fund, society or organisation,
2. to entitle such persons, or such persons of a particular description, and persons claiming in right of them, to receive benefits from the fund, society or organisation (subject to any terms and conditions specified in the resolution) if, and to the extent that, they would be entitled to receive benefits from it if being engaged in the business of the Post Office company were being engaged in the business of the Post Office.

(5) No alteration may be made that alters the character of the fund, society or organisation.

(6) If a resolution of the managers of a fund, society or organisation to which this paragraph applies so provides—

1. any references in the trust deed, rules, regulations or other instrument constituting or regulating the fund, society or organisation to the Post Office shall be construed as references (or, if the context so requires, as including references) to the Post Office company, and
2. any references in that instrument to persons engaged in the business of the Post Office or persons of a particular description so engaged shall be construed as references (or, if the context so requires, as including references) to persons engaged in the business of the Post Office company or (as the case may be) persons of a corresponding description so engaged.

(7) In this paragraph "managers" in relation to a fund, society or organisation, means the trustees, committee or other persons entrusted with its management.

Third party rights relating to land

6.—(1) No relevant land right shall operate or become exercisable as a result of the transfer effected by virtue of section 62.

(2) In this paragraph "relevant land right" means any of the following rights relating to land—

1. a right of reverter (or, in Scotland, the right of the fiar on the termination of a liferent),
2. a right of pre-emption,
3. a right of forfeiture,
4. a right of re-entry,
5. a right of irritancy,
6. an option, and
7. a right similar to anything falling within paragraphs (a) to (f).

(3) A relevant land right shall have effect, in the case of the transfer effected by virtue of section 62, as if—

1. the Post Office company were the same person in law as the Post Office, and
2. no transfer of the land had taken place.

(4) Such compensation as is just shall be paid by the Post Office company to any person in respect of any relevant land right which would, apart from sub-paragraphs (1) to (3), have operated in favour of, or become exercisable by, that person but which, in consequence of the operation of those sub-paragraphs, cannot subsequently operate in his favour or (as the case may be) become exercisable by him.

(5) Any dispute as to whether, or how much, compensation is payable or about the person to whom it is payable shall be referred to and determined by—

1. an arbitrator appointed by the President of the Royal Institution of Chartered Surveyors (if the proceedings are to be held in England and Wales),
2. an arbiter appointed by the Chairman of the Royal Institution of Chartered Surveyors in Scotland (if the proceedings are to be held in Scotland), or
3. an arbitrator appointed by the Lord Chancellor (if the proceedings are to be held in Northern Ireland).

Other third party property rights

7.—(1) This paragraph applies where—

1. any rights or liabilities of a third party which were enforceable against or by the Post Office have by virtue of this Part of this Act become enforceable against or by the Post Office company, and
2. the value of any property or interest of the third party is diminished as a result.

(2) Such compensation as is just shall be paid by the Post Office company.

(3) Any dispute as to whether, or how much, compensation is payable or about the person to whom it is payable shall be referred to and determined by—

1. an arbitrator appointed by the President of the Royal Institution of Chartered Surveyors (if the proceedings are to be held in England and Wales),
2. an arbiter appointed by the Chairman of the Royal Institution of Chartered Surveyors in Scotland (if the proceedings are to be held in Scotland), or
3. an arbitrator appointed by the Lord Chancellor (if the proceedings are to be held in Northern Ireland).

(4) In this paragraph "third party" means any person other than the Post Office and the Post Office company.

Requisitions on title as to Treasury consent

8. A person dealing with the Post Office company in respect of land transferred to it by virtue of section 62 shall not be bound or entitled to inquire whether the consent of the Treasury to any previous dealing with the land was needed or whether, if it was, it was given.

Vesting of foreign property etc.

9.—(1) The Post Office and the Post Office company shall take, as and when during the transitional period the Post Office company considers appropriate, all such steps as may be necessary to secure that the vesting in the Post Office company by virtue of section 62 or this paragraph of any foreign property, right or liability is effective under the relevant foreign law.

(2) Until the vesting in the Post Office company by virtue of section 62 or this paragraph of any foreign property, right or liability is effective under the relevant foreign law, the Post Office shall during the transitional period—

1. hold that property or right for the benefit of the Post Office company, or
2. discharge that liability on behalf of the Post Office company.

(3) Nothing in sub-paragraphs (1) and (2) shall be taken as prejudicing the effect under the law of the United Kingdom, or of any part of the United Kingdom, of the vesting in the Post Office company by virtue of section 62 or this paragraph of any foreign property, right or liability.

(4) The Post Office shall, subject to sub-paragraphs (5) and (6), have all such powers as may be necessary for the performance of its duties under this paragraph.

(5) The Post Office company shall during the transitional period act on behalf of the Post Office (so far as possible) in performing the duties imposed on the Post Office by this paragraph.

(6) Any foreign property, rights and liabilities acquired or incurred by the Post Office during the transitional period shall immediately become property, rights and liabilities of the Post Office company.

(7) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have been determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

(8) Any expenses incurred by the Post Office under this paragraph shall be met by the Post Office company.

Interpretation

10. The period of the continued existence of the Post Office after the appointed day is referred to in this Schedule as "the transitional period".

SCHEDULE 4

TRANSFER TO THE POST OFFICE COMPANY: TAX

Corporation tax: general

1. The Post Office company shall, on and after the appointed day, be treated for all purposes of corporation tax as if it were the same person as the Post Office.

Shares and other securities

of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to the company concerned of an amount equal to the nominal value of the share.

3. Any security (other than a share) issued by the Post Office company or any of its wholly owned subsidiaries in pursuance of section 63 or 74 shall be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a loan made to the company concerned of an amount equal to the principal sum payable under the security.

Debt

assumed wholly in consideration of a loan made to the company of an amount equal to the principal sum payable under the debt.

Transfer arrangements

5. The existence or exercise of the powers of the Secretary of State under section 62 shall not be regarded as constituting or creating arrangements within the meaning of section 410 of the Income and Corporation Taxes Act 1988(arrangements for the transfer of a company to another group or consortium).

Tax-free benefits

6. Nothing in this Part and nothing done under it shall be regarded as a scheme or arrangement for the purposes of section 30 of the Taxation of Chargeable Gains Act 1992(tax-free benefits).

Assets acquired by the Post Office in 1969

7. The Act of 1992 shall apply in relation to a disposal by the Post Office company of an asset acquired by the Post Office by virtue of Part III of the Post Office Act 1969as if the acquisition or provision of the asset by the Crown had been the acquisition or provision of it by the Post Office company.

Value added tax

8. The Post Office company shall, on and after the appointed day, be treated for all purposes of value added tax as if it were the same person as the Post Office.

Stamp duty

9. No transfer effected by virtue of section 62 shall give rise to any liability to stamp duty.

SCHEDULE 5

ACQUISITION OF LAND

PART I

POWERS OF ACQUISITION ETC

England and Wales

1.—(1) The Secretary of State may authorise a universal service provider to purchase compulsorily any land in England and Wales required for any purpose in connection with the provision of a universal postal service.

(2) The power of purchasing land compulsorily under this paragraph includes power to acquire, by creation of a new right, an easement or other right over land.

(3) Any land in England and Wales vested in a universal service provider by virtue of this Schedule shall be deemed for all purposes to have been acquired by him for the purposes of his undertaking as a universal service provider.

Scotland

2.—(1) The Secretary of State may authorise a universal service provider to purchase compulsorily any land in Scotland required for any purpose in connection with the provision of a universal postal service.

(2) The power of purchasing land compulsorily under this paragraph includes power to acquire, by creation of a new right, a servitude or other right over land.

(3) Any land in Scotland vested in a universal service provider by virtue of this Schedule shall be deemed for all purposes to have been acquired by him for the purposes of his undertaking as a universal service provider.

Northern Ireland

3.—(1) Where a universal service provider proposes to acquire, otherwise than by agreement, any land in Northern Ireland—

1. which is required by the universal service provider for any purpose in connection with the provision of a universal postal service, or
2. as to which it can reasonably be foreseen that it will be so required,

the universal service provider may apply to the Secretary of State for an order vesting the land in him, and the Secretary of State shall have power to make such an order.

(2) The power of acquiring land compulsorily under this paragraph includes power to acquire, by the creation of a new right, an easement or other right over land.

(3) The Secretary of State shall consult the First Minister and the deputy First Minister in Northern Ireland before exercising his power to make an order under this paragraph in respect of land which—

1. is the property of any public body which has power under any enactment to acquire land compulsorily, or
2. is declared by or under any enactment to be inalienable,

where representations objecting to the proposal for making the order have been duly made by the owner of the land and not withdrawn.

(4) Any land in Northern Ireland vested in a universal service provider by virtue of this Schedule shall be deemed for all purposes to have been acquired by him for the purposes of his undertaking as a universal service provider.

(5) Section 122(1) does not apply to an order of the Secretary of State under this paragraph.

(6) In this paragraph—

"land" has the meaning given by section 45(1)(a) of the Interpretation Act (Northern Ireland) 1954, and

"public body" means a body established by or under any enactment.

PART II

PROCEDURE, COMPENSATION ETC (ENGLAND AND WALES)

Application of Acquisition of Land Act 1981

4.—(1) The Acquisition of Land Act 1981 shall apply to any compulsory purchase by a universal service provider of land or rights in England and Wales.

(2) Schedule 3 to that Act shall apply in the case of a compulsory acquisition by a universal service provider of a right by the creation of a new right.

New rights: Compulsory Purchase Act 1965

5. The Compulsory Purchase Act 1965shall have effect with the modifications necessary to make it apply to a universal service provider's compulsory acquisition of a right in England and Wales by the creation of a new right as it applies to the compulsory acquisition of land, so that, in appropriate contexts, references in that Act to land are to be read as referring, or as including references, to—

1. the right acquired or to be acquired, or
2. land over which the right is or is to be exercisable,

according to the requirements of the particular context.

New rights: specific adaptations of 1965 Act

6. Without prejudice to the generality of paragraph 5, Part I of the Compulsory Purchase Act 1965 shall apply in relation to a universal service provider's compulsory acquisition of a right in England and Wales by the creation of a new right with the modifications specified in paragraphs 7 to 12.

7. For section 7 of that Act (measure of compensation) there shall be substituted the following section—

"7. In assessing the compensation to be paid by the acquiring authority under this Act regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the special Act."

8. In section 8 of that Act (protection for vendor against severance of house, garden, etc.), for subsection (1) there shall be substituted—

(1) Subject to subsections (1A) to (1C), no person shall be required to grant any right over part only—

1. of any house, building or manufactory, or
2. of a park or garden belonging to a house,

if he is willing to sell the whole of the house, building, manufactory, park or garden.

(1A) The Lands Tribunal may determine that—

1. in the case of a house, building or manufactory, the part over which the right is proposed to be acquired can be made subject to that right without material detriment to the house, building or manufactory, or
2. in the case of a park or garden, the part over which the right is proposed to be acquired can be made subject to that right without seriously affecting the amenity or convenience of the house.

(1B) If the Lands Tribunal make such a determination, the Tribunal shall award compensation in respect of any loss due to the acquisition of the right, in addition to its value; and the owner shall be required to grant to the acquiring authority that right over the part of the house, building, manufactory, park or garden.

(1C) In considering for the purposes of subsection (1A)—

1. the extent of any material detriment to a house, building or manufactory, or
2. any extent to which the amenity or convenience of a house is affected,

the Lands Tribunal shall have regard not only to the right which is to be acquired over the land, but also to any adjoining or adjacent land belonging to the same owner and subject to compulsory purchase."

9.—(1) The provisions of that Act referred to in sub-paragraph (2) (being provisions stating the effect of a deed poll executed in various circumstances where there is no conveyance by persons with interests in the land) shall be modified in accordance with sub-paragraph (3).

(2) The provisions are—

section 9(4) (refusal by owners to convey),

Schedule 1, paragraph 10(3) (owners under incapacity),

Schedule 2, paragraph 2(3) (absent and untraced owners), and

Schedule 4, paragraphs 2(3) and 7(2) (common land).

(3) The provisions shall be so modified as to secure that, as against persons with interests in the land which are expressed to be overridden by the deed, the right which is to be compulsorily acquired is vested absolutely in the acquiring authority.

10. Section 11 of that Act (powers of entry) shall be so modified as to secure that, as from the date on which the acquiring authority have served notice to treat in respect of any right, the acquiring authority have power, exercisable in the like circumstances and subject to the like conditions, to enter for the purpose of exercising that right (which shall be deemed for this purpose to have been created on the date of service of the notice); and sections 12 (penalty for unauthorised entry) and 13 (entry on sheriff's warrant in the event of obstruction) shall be modified correspondingly.

11. Section 20 of that Act (protection for interests of tenants at will etc.) shall apply with the modifications necessary to secure that persons with such interests as are mentioned in that section are compensated in a manner corresponding to that in which they would be compensated on a compulsory acquisition of thatland, but taking into account only the extent (if any) of such interference with such an interest as is actually caused, or likely to be caused, by the exercise of the right in question.

12. Section 22 of that Act (protection of acquiring authority's possession where by inadvertence an estate, right or interest has not been got in) shall be so modified as to enable the acquiring authority, in circumstances corresponding to those referred to in that section, to continue to be entitled to exercise the right acquired, subject to compliance with that section as respects compensation.

New rights: compensation

13. The enactments in force in England and Wales with respect to compensation for the compulsory purchase of land shall apply with the necessary modifications as respects compensation in the case of a universal service provider's compulsory acquisition of a right by the creation of a new right as they apply to compensation on the compulsory purchase of land and interests in land.

PART III

PROCEDURE, COMPENSATION ETC (SCOTLAND)

Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947

14. The Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947shall apply to the compulsory purchase by a universal service provider of land or rights in Scotland as if he were a local authority within the meaning of that Act, and as if this Act had been in force immediately before the commencement of that Act.

New rights: application of 1947 Act and incorporated enactments

15. The Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947, and the enactments incorporated with this Act by virtue of paragraph 14 above and paragraph 1 of the Second Schedule to that Act, shall have effect with the modifications necessary to make them apply to a universal service provider's compulsory acquisition of a right in Scotland by the creation of a new right as they apply to the compulsory acquisition of land, so that, in appropriate contexts, references in those enactments and that Act to land are to be read as referring, or as including references, to—

1. the right acquired or to be acquired, or
2. land over which the right is or is to be exercisable,

according to the requirements of the particular context.

New rights: specific adaptations of 1947 Act

16. Without prejudice to the generality of paragraph 15 above, Part III of the First Schedule to the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 (requirement of special parliamentary procedure, and other special provisions, in the case of acquisition of certain descriptions of land) shall apply in relation to a universal service provider's compulsory acquisition of a right in Scotland by the creation of a new right with the modifications specified in paragraphs 17 to 21 below.

17. In paragraph 9 of that Schedule (compulsory purchase affecting land of the National Trust for Scotland) for references to the compulsory purchase of land there shall be substituted references to the compulsory acquisition of rights over land.

18. In paragraph 10 of that Schedule (land of statutory undertakers)—

1. for the words "land comprised in the order" there shall be substituted the words "land over which a right is to be acquired by virtue of the order",
2. for the words "purchase of" there shall be substituted the words "acquisition of a right over",
3. for the words "it can be purchased and not replaced" there shall be substituted the words "the right can be acquired",
4. for sub-paragraph (ii) there shall be substituted the following sub-paragraph—

   "(ii) that any detriment to the carrying on of the undertaking, in consequence of the acquisition of the right, can be made good by the undertakers by the use of other land belonging to, or available for acquisition by, them", and

5. the references to "the Scottish Ministers" (as substituted by the Scotland Act 1998 (Consequential Modifications) (No. 2) Order 1999), however expressed, shall be construed as references to the Secretary of State.

19. In paragraph 11 of that Schedule (common or open space), for sub-paragraph (1) there shall be substituted the following sub-paragraph—

20. Paragraph 3(1) of the Second Schedule to the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947shall be so modified as to secure that, as from the date on which the universal service provider has served notice to treat in respect of any right, he has power, exercisable in the like circumstances and subject to the like conditions, to enter for the purpose of exercising that right (which shall be deemed for this purpose to have been created on the date of service of the notice).

21. For paragraph 4 of that Schedule (protection for owner against severance of property) there shall be substituted the following paragraphs—

New rights: specific adaptations of Lands Clauses Consolidation (Scotland) Act 1845

22. Without prejudice to the generality of paragraph 15 above, the Lands Clauses Consolidation (Scotland) Act 1845shall apply in relation to a universal service provider's compulsory acquisition of a right in Scotland by the creation of a new right with the modifications specified in paragraphs 23 to 26 below.

23. For section 61 of that Act (estimation of compensation) there shall be substituted the following section—

"61. In estimating the purchase money or compensation to be paid by the universal service provider under the special Act, in any of the cases aforesaid, regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right, but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the special Act."

24. The following provisions of that Act (being provisions stating the effect of a notarial instrument or of a disposition executed in various circumstances where there is no conveyance by persons with interests in the land)—

section 74 (failure by owner to convey),

section 76 (refusal to convey or show title or owner cannot be found), and

section 98 (vesting of common land),

shall be so modified as to secure that, as against persons with interests in the land over which the right is to be compulsorily acquired, such right is vested absolutely in the universal service provider.

25. Sections 114 (compensation to be made to tenants for a year etc.) and 115 (compensation where greater interest than tenant for a year) of that Act shall apply with the modifications necessary to secure that persons with such interestsas are mentioned in those sections are compensated in a manner corresponding to that in which they would be compensated on a compulsory acquisition of that land, but taking into account only the extent (if any) of such interference with such an interest as is actually caused, or likely to be caused, by the exercise of the right in question.

supplementary to section 117) of that Act shall be so modified as to enable the universal service provider, in circumstances corresponding to those referred to in those sections, to continue to be entitled to exercise the right acquired, subject to compliance with those sections as respects compensation.

New rights: compensation

27. The enactments in force in Scotland with respect to compensation for the compulsory purchase of land shall apply as respects compensation in the case of a universal service provider's compulsory acquisition of a right by the creation of a new right as they apply to compensation on the compulsory purchase of land and interests in land.

PART IV

PROCEDURE, COMPENSATION ETC (NORTHERN IRELAND)

28. For the purposes of the acquisition of land by means of a vesting order under paragraph 3 of this Schedule, Schedule 6 to the Local Government Act (Northern Ireland) 1972and Schedule 8 to the Health and Personal Social Services (Northern Ireland) Order 1972are incorporated in this Act subject to the modifications in paragraph 29.

29. The modifications mentioned in paragraph 28 are—

1. for any reference in Schedule 6 to a council there shall be substituted a reference to the universal service provider,
2. for any reference in Schedule 6 or Schedule 8 to the Department there shall be substituted a reference to the Secretary of State,
3. for any reference in Schedule 6 to the Act or in Schedule 8 to the Order there shall be substituted a reference to this Act,
4. in paragraph 6(2) of Schedule 6, for the words from "the fund" onwards there shall be substituted the words "funds of the universal service provider (in this Schedule referred to as "the compensation fund") and shall be discharged by payments made by the universal service provider",
5. in paragraph 12(2) of Schedule 6, for the words "the clerk of the council" there shall be substituted "such person as may be designated for the purposes of this Schedule by the universal service provider".

30. The enactments for the time being in force relating to the assessment of compensation in respect of land vested in a district council by an order made under Schedule 6 to the Local Government Act (Northern Ireland) 1972 shall, subject to any necessary modifications, apply in relation to any land vested in a universal service provider by a vesting order made under paragraph 3 of this Schedule.

SCHEDULE 6

FURTHER PROVISIONS RELATING TO LAND

1.—(1) A universal service provider may, for any purpose in connection with the provision of a universal postal service, execute in a street works of any of the kinds mentioned in sub-paragraph (2).

(2) The kinds of works are—

1. placing a universal postal service letter box or a universal postal service pouch-box in a street,
2. inspecting, maintaining, adjusting, repairing, altering or renewing such apparatus which has been so placed, changing its position or removing it,
3. works needed for, or incidental to, the purposes of any works falling within paragraph (a) or (b) (including, in particular, breaking up or opening a street).

(3) Accordingly, Part III of the New Roads and Street Works Act 1991 (street works in England and Wales), and the Street Works (Northern Ireland) Order 1995, apply in relation to undertakers' works in exercise of a power conferred by this paragraph.

(4) For the avoidance of doubt, references in Part III of the Act of 1991 or the Order of 1995 to apparatus shall be construed as including universal postal service letter boxes and universal postal service pouch-boxes.

(5) Subject to sub-paragraphs (6) and (7), sub-paragraph (1) authorises the universal service provider concerned to execute works of any of the kinds mentioned in sub-paragraph (2) without obtaining any consent which would otherwise be required to be given by the street authority in its capacity as such and, in the case of a maintainable highway, in its capacity as owner.

(6) Sub-paragraph (5) is without prejudice to—

1. the provisions of Part III of the Act of 1991, or the provisions of the Order of 1995, as to the making of requirements by the street authority or as to the settlement of a plan and section and the execution of the works in accordance with them,
2. section 61 of the Act of 1991 or Article 21 of the Order of 1995 (consent required for protected streets).

(7) Sub-paragraph (1) does not free the universal service provider concerned from obtaining any other consent, licence or permission which may be required.

(8) This paragraph binds the Crown.

(9) In this paragraph references to doing anything in a street shall be construed as including references to doing anything under, over, across, along or upon the street.

(10) In this paragraph—

(11) In the application of this paragraph to Scotland—

1. references to streets shall be construed as references to roads and references to street authority shall be construed as references to road works authority,
2. "maintainable highway" means a public road within the meaning of Part IV of the Act of 1991 and includes a road in respect of which a declaration has been made under section 146 of that Act (prospective public roads),
3. "road" and "road works authority" have the same meaning as in Part IV of the Act of 1991,
4. in sub-paragraph (3) for the words from "Part III" to "apply" there shall be substituted "Part IV of the New Roads and Street Works Act 1991 (road works in Scotland) applies",
5. in sub-paragraph (4) for the words from "Part III" to "1995" there shall be substituted "Part IV of the Act of 1991",
6. in sub-paragraph (6)(a) for the words from "Part III" to "1995," there shall be substituted "Part IV of the Act of 1991", and
7. in sub-paragraph (6)(b) for the words from "61" to "of 1995" there shall be substituted "120 of the Act of 1991".

Entry on land for exploratory purposes

2.—(1) A person authorised in writing by a universal service provider may, at any reasonable time, enter upon and survey any land for the purpose of ascertaining whether the land would be suitable for use for any purpose in connection with the provision of a universal postal service.

(2) The power to survey land conferred by this paragraph includes power to search and bore for the purpose of ascertaining the nature of the subsoil.

(3) The powers conferred by this paragraph shall not be exercisable in relation to land which is covered by a building or will be so covered on the assumption that any planning permission which is in force is acted on.

(4) In this paragraph "building" includes any garden, yard, outhouses and appurtenances belonging to or usually enjoyed with a building.

3.—(1) A person authorised to enter upon any land under paragraph 2 shall not demand to do so as of right unless—

1. 28 days notice of the intended entry has been given to the occupier, and
2. if required to do so, he has produced evidence of his authority and has stated the purpose of his entry.

(2) No person may carry out works authorised by paragraph 2(2) unless notice of the proposed works was included in the notice given under sub-paragraph (1).

(3) If the land in question is held by statutory undertakers and they object to the works on the ground that the carrying out of the works would be seriously detrimental to the carrying on of their undertaking, the authority of the appropriate Minister shall be required for the carrying out of works authorised by paragraph 2(2).

(4) In sub-paragraph (3) as it relates to England and Wales—

"appropriate Minister" means the person indicated by section 265 of the Town and Country Planning Act 1990,

"statutory undertakers" means any persons who, by virtue of section 262 of the Town and Country Planning Act 1990, are or are treated as statutory undertakers for the purposes of that Act or any provision of that Act.

(5) In that sub-paragraph as it relates to Scotland—

and this sub-paragraph has effect notwithstanding the repeal of section 217 of the Town and Country Planning (Scotland) Act 1997 by paragraph 127(3) of Schedule 2 to the Scotland Act 1998 (Consequential Modifications) (No. 2) Order 1999 .

(6) In that sub-paragraph as it relates to Northern Ireland—

4.—(1) Any person who intentionally obstructs a person acting in the exercise of any power conferred by paragraph 2 shall be guilty of an offence.

(2) A person who commits an offence under sub-paragraph (1) shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

5.—(1) If in the exercise of any power conferred by paragraph 2 any damage is caused to land or moveables, any person interested in the land or moveables may recover compensation in respect of that damage from the universal service provider on whose behalf the power is exercised; and if in consequence of the exercise of such a power a person is disturbed in his enjoyment of any land or moveables, he may recover compensation from the universal service provider in respect of that disturbance.

(2) In relation to England and Wales, any question of disputed compensation under sub-paragraph (1) shall be referred to and determined by the Lands Tribunal; and sections 2 and 4 of the Land Compensation Act 1961 shall apply in relation to the determination subject to any necessary modifications.

(3) In relation to Scotland, any question of disputed compensation under sub-paragraph (1) shall be referred to and determined by the Lands Tribunal for Scotland; and sections 9 and 11 of the Land Compensation (Scotland) Act 1963 shall apply in relation to the determination subject to any necessary modifications.

(4) In relation to Northern Ireland, any question of disputed compensation under sub-paragraph (1) shall be referred to and determined by the Lands Tribunal for Northern Ireland; and the determination shall be deemed to be a determination to which section 31 of the Land Development Values (Compensation) Act (Northern Ireland) 1965 applies.

(5) In this paragraph "moveables" means—

1. in relation to England and Wales and Northern Ireland, chattels, and
2. in relation to Scotland, corporeal moveables.

Acquisition of land by agreement

6. For the purpose of the acquisition by agreement by a universal service provider for any purpose in connection with the provision of a universal postal service of land in England and Wales, the provisions of Part I of the Compulsory Purchase Act 1965(so far as applicable), other than sections 4 to 8 and section 31, shall apply.

7. For the purpose of the acquisition by agreement by a universal service provider for any purpose in connection with the provision of a universal postal service of land in Scotland, section 188(2) of the Town and Country Planning (Scotland) Act 1997(incorporation of Lands Clauses Acts) shall, with any necessary modifications, apply for the purposes of this Act as it applies for the purposes of that Act.

8. For the purpose of the acquisition by agreement by a universal service provider for any purpose in connection with the provision of a universal postal service of land in Northern Ireland, the Lands Clauses Acts shall be incorporated with this Act except for sections 127 to 133 (sale of superfluous land) and sections 150 and 151 (access to the special Act) of the Lands Clauses Consolidation Act 1845.

Power to sell Duchy of Lancaster land

9. If a universal service provider proposes to acquire by agreement any land belonging to Her Majesty in right of the Duchy of Lancaster for any purpose in connection with the provision of a universal postal service, the Chancellor and Council of the Duchy of Lancaster may sell that land to him.

Supplementary

10. Any land acquired by agreement by a universal service provider by virtue of any of paragraphs 6 to 9 shall be deemed for all purposes to have been acquired by him for the purposes of his undertaking as a universal service provider.

SCHEDULE 7

DISCLOSURE OF INFORMATION

Prohibition on disclosure

1.—(1) This Schedule applies to information if—

1. it was obtained by virtue of this Act (other than section 62 or 118), and
2. it relates to the affairs of an individual or to a particular business.

(2) The information shall not be disclosed during the lifetime of the individual or so long as the business is carried on, except as provided below.

Disclosure with consent

2. Paragraph 1(2) does not apply to a disclosure made with the consent of the individual or the person for the time being carrying on the business.

Other permitted disclosures

3.—(1) Paragraph 1(2) does not apply to a disclosure made—

1. for the purpose of facilitating the carrying out by the Secretary of State, the Treasury, the Commission, the Competition Commission or the Council of any of his or their functions under this Act,
2. for the purpose of facilitating the carrying out by a person or body mentioned in sub-paragraph (2) of any of his or its functions under an enactment or instrument specified in sub-paragraph (3),
3. for the purpose of enabling or assisting the Secretary of State, the Treasury, the Department for Enterprise, Trade and Investment in Northern Ireland or the Department of Finance and Personnel in Northern Ireland to exercise any powers conferred by the Financial Services Act 1986 or by the enactments relating to companies, insurance companies or insolvency,
4. for the purpose of enabling or assisting an inspector appointed under the enactments relating to companies to carry out his functions,
5. for the purpose of enabling or assisting an official receiver to carry out his functions under the enactments relating to insolvency or for the purpose of enabling or assisting a recognised professional body for the purposes of section 391 of the Insolvency Act 1986 or Article 350 of the Insolvency (Northern Ireland) Order 1989 to carry out its functions,
6. for the purpose of facilitating the carrying out by the Health and Safety Commission or the Health and Safety Executive of any of its functions under any enactment or of facilitating the carrying out by any enforcing authority (within the meaning of Part I of the Health and Safety at Work etc. Act 1974) of any functions under a relevant statutory provision (within the meaning of that Act),
7. for the purpose of facilitating the carrying out by the Health and Safety Executive for Northern Ireland of any of its functions under any enactment or of facilitating the carrying out by any enforcing authority (within the meaning of Part I of the Health and Safety at Work (Northern Ireland) Order 1978) of any function under a relevant statutory provision (within the meaning of that Order),
8. for the purpose of facilitating the carrying out by the Comptroller and Auditor General, or the Comptroller and Auditor General for Northern Ireland, of any of his functions under any enactment,
9. in connection with the investigation of any criminal offence or for the purposes of any criminal proceedings,
10. for the purposes of any civil proceedings brought by virtue of this Act or any enactment or instrument specified in sub-paragraph (3),
11. in pursuance of a Community obligation,
12. by the Secretary of State, or with his consent, to an international organisation of which the United Kingdom is a member,
13. in connection with negotiations conducted by officers of the Secretary of State with representatives of the government of a country or territory outside the United Kingdom,
14. in connection with the discharge of an obligation of the United Kingdom under international arrangements.

(2) The persons and bodies are—

1. any Minister of the Crown,
2. any Northern Ireland department,
3. any Northern Ireland Minister,
4. the Director General of Fair Trading,
5. the Competition Commission,
6. the Director General of Telecommunications,
7. the Independent Television Commission,
8. the Director General of Gas Supply,
9. the Director General of Gas for Northern Ireland,
10. the Director General of Water Services,
11. the Water Appeals Commission for Northern Ireland,
12. the Director General of Electricity Supply,
13. the Director General of Electricity Supply for Northern Ireland,
14. the Coal Authority,
15. the Civil Aviation Authority,
16. the Rail Regulator,
17. the Insolvency Practitioners Tribunal,
18. a local weights and measures authority in Great Britain.

(3) The enactments and instruments are—

1. the Trade Descriptions Act 1968,
2. the Fair Trading Act 1973,
3. the Consumer Credit Act 1974,
4. the Estate Agents Act 1979,
5. the Competition Act 1980,
6. the Telecommunications Act 1984,
7. the Airports Act 1986,
8. the Gas Act 1986,
9. the Insolvency Act 1986,
10. the Consumer Protection Act 1987,
11. the Electricity Act 1989,
12. the Broadcasting Act 1990,
13. the Property Misdescriptions Act 1991,
14. the Water Industry Act 1991,
15. the Water Resources Act 1991,
16. the Railways Act 1993,
17. the Coal Industry Act 1994,
18. the Broadcasting Act 1996,
19. the Competition Act 1998,
20. the Water and Sewerage Services (Northern Ireland) Order 1973,
21. the Audit (Northern Ireland) Order 1987,
22. the Consumer Protection (Northern Ireland) Order 1987,
23. the Insolvency (Northern Ireland) Order 1989,
24. the Electricity (Northern Ireland) Order 1992,
25. Part IV of the Airports (Northern Ireland) Order 1994,
26. the Gas (Northern Ireland) Order 1996,
27. the EC Competition Law (Articles 88 and 89) Enforcement Regulations 1996,
28. the Water (Northern Ireland) Order 1999,
29. any subordinate legislation made for the purpose of securing compliance with the Directive of the Council of the European Communities dated 10th September 1984 (No. 84/450/EEC) on the approximation of the laws, regulations and administrative provisions of the member States concerning misleading advertising.

4. The Secretary of State may by order modify paragraph 3.

Other exceptions

5.—(1) Paragraph 1(2) does not limit the information which may be—

1. included in, or made public as a part of, a report on a reference under section 15,
2. included in, or made public as part of, a report under section 45, 55 or 57,
3. published by the Commission under section 46, or
4. made available by the Council under section 52, 53 or 59 or the Commission under section 58.

(2) Sub-paragraph (1) is without prejudice to any other exception to paragraph 1(2).

(3) Paragraph 1(2) does not apply to information which has been made available to the public by being disclosed in circumstances in which, or for a purpose for which, disclosure is not precluded by this Schedule.

Offence

6.—(1) A person commits an offence if he discloses information in contravention of this Schedule.

(2) A person who commits an offence under sub-paragraph (1) shall be liable—

1. on summary conviction, to a fine not exceeding the statutory maximum,
2. on conviction on indictment, to a fine or to imprisonment for a term not exceeding two years or to both.

SCHEDULE 8

AMENDMENTS OF ENACTMENTS

PART I

GENERAL AMENDMENTS

1.—(1) Any enactment which requires or authorises a document or other thing to be sent by post (whether or not it makes any other provision in that respect) shall not be construed as limited to requiring or (as the case may be) authorising that thing to be sent by the postal system of the Post Office company.

(2) Any enactment which makes any other provision in relation to the sending of a document or other thing by post or to a thing so sent shall not be construed as limited to the sending of that thing by the postal system of the Post Office company or (as the case may be) to a thing sent by that system.

2.—(1) Any enactment which requires or authorises a document or other thing to be sent by registered post (whether or not it makes any other provision in that respect) shall be construed as if it required or (as the case may be) authorised that thing to be sent by a registered post service.

(2) Any enactment which makes any other provision in relation to the sending of a document or other thing by registered post or to a thing so sent shall be construed as if it made corresponding provision in relation to the sending of that thing by a registered post service or (as the case may be) to a thing sent by such a service.

3.—(1) Any enactment which requires or authorises a document or other thing to be sent by recorded delivery (whether or not it makes any other provision in that respect) shall be construed as if it required or (as the case may be) authorised that thing to be sent by a postal service which provides for the delivery of the document or other thing by post to be recorded.

(2) Any enactment which makes any other provision in relation to the sending of a document or other thing by recorded delivery or to a thing so sent shall be construed as if it made corresponding provision in relation to the sending of that thing by a postal service which provides for the delivery of the document or other thing by post to be recorded or (as the case may be) to a thing sent by such a service.

4.—(1) Any enactment which requires or authorises a document or other thing to be sent by first class post (whether or not it makes any other provision in that respect) shall be construed as if it required or (as the case may be) authorised that thing to be sent by a postal service which seeks to deliver such documents or other things by post no later than the next working day in all or the majority of cases.

(2) Any enactment which makes any other provision in relation to the sending of a document or other thing by first class post or to a thing so sent shall be construed as if it made corresponding provision in relation to the sending of that thing by a postal service which seeks to deliver such documents or other things by post no later than the next working day in all or the majority of cases or (as the case may be) to a thing sent by such a service.

5.—(1) Any reference (however worded and including references which are to be construed as such references) in a related enactment to the post or to a thing sent by post shall not be construed as limited to the postal system of the Post Office company or (as the case may be) to a thing sent by that system.

(2) In sub-paragraph (1) "related enactment" means—

1. any enactment the provisions of which apply to, or operate in consequence of the operation of, any enactment to which paragraph 1 applies, or
2. any enactment relating to the sending of documents or other things otherwise than by post or to documents or other things so sent.

(3) Any reference (however worded and including references which are to be construed as such references) in a related enactment to the registered post, the recorded delivery service or the first class post, or to a letter or other postal packet sent by that service or post, shall be construed as references (as the case may be) to a registered post service, a postal service which provides for the delivery of the document or other thing by post to be recorded or a postal service which seeks to deliver such documents or other things by post no later than the next working day in all or the majority of cases, or to a letter or other postal packet sent by such a service or post.

(4) In sub-paragraph (3) "related enactment" means—

1. any enactment the provisions of which apply to, or operate in consequence of the operation of, any enactment to which paragraph 2, 3 or (as the case may be) 4 applies,
2. any enactment relating to the sending of documents or other things otherwise than by registered post, recorded delivery or (as the case may be) first class post or to documents or other things so sent.

(5) Any reference (however worded and including references which are to be construed as such references) in a related enactment to—

1. a Post Office receipt for a registered or recorded letter or other postal packet,
2. an acknowledgement by the Post Office of delivery of such a letter or packet, or a certificate by the Post Office of such delivery,

shall be construed as a reference to a receipt of, or an acknowledgement or certificate by, the postal operator concerned.

(6) In sub-paragraph (5) "related enactment" means—

1. any enactment (other than a future enactment) the provisions of which apply to, or operate in consequence of the operation of, any enactment to which paragraph 2 or (as the case may be) 3 applies,
2. any enactment (other than a future enactment) relating to the sending of documents or other things otherwise than by registered post or recorded delivery or to documents or other things so sent.

(7) This paragraph is without prejudice to the generality of paragraphs 1 to 4.

6.—(1) The Secretary of State may by order provide for any provision of paragraphs 1 to 5 not to apply, or to apply with modifications, in such cases or descriptions of case as he considers appropriate.

(2) Paragraphs 1 to 5 do not apply in relation to future enactments if the context otherwise requires.

(3) Paragraphs 1 to 5 are subject to any provision made by or under this Act.

7.—(1) In this Part of this Schedule, "future enactment" means any enactment passed or made after the passing of this Act other than—

1. any enactment made before the commencement of this sub-paragraph and comprised in subordinate legislation made under an enactment passed or made before the passing of this Act, and
2. any Act passed in the same session as this Act or any enactment comprised in subordinate legislation made under such an Act before the commencement of this sub-paragraph.

(2) In this Part of this Schedule—

1. references to sending a document or other thing include references to serving, executing, giving or delivering it or doing any similar thing,
2. references to sending any thing by registered post include references to sending it by or in a registered letter or other postal packet (whether the references are expressed in those terms or terms having a similar effect and whether there is any mention of the post or prepayment),
3. references to sending any thing by recorded delivery include references to sending it by or in a recorded letter or other postal packet (whether the references are expressed in those terms or terms having a similar effect and whether there is any mention of the post or prepayment),
4. references to any thing sent by registered post or the recorded delivery service shall be construed accordingly.

PART II

OTHER AMENDMENTS

Public Records Act 1958 (c.51)

8. In Schedule 1 to the Public Records Act 1958 (definition of public records), in Part II of the Table which is at the end of paragraph 3, there shall be inserted at the appropriate places—

"Consumer Council for Postal Services."

"Post Office company (within the meaning of Part IV of the Postal Services Act 2000)."

Parliamentary Commissioner Act 1967 (c.13)

9. In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc. subject to investigation), after the entry for the Office of Population Censuses and Surveys there shall be inserted—

"Consumer Council for Postal Services".

10. In that Schedule to that Act the reference to the Postal Services Commission shall be construed as a reference to the Commission established by section 1 of this Act.

Post Office Act 1969 (c.48)

11. In section 135(1) of the Post Office Act 1969 (remuneration of Post Office for issuing game licences in England and Wales) for "the Post Office", where it appears for the first, second and third time, there shall be substituted "the Post Office company".

Pensions (Increase) Act 1971 (c.56)

12. In paragraph 3 of Schedule 3 to the Pensions (Increase) Act 1971 (duty of Post Office to increase pensions of certain former civil servants)—

1. for "the Post Office", where it first appears, there shall be substituted "the Post Office company",
2. for "the Post Office are" there shall be substituted "the Post Office company is",
3. after "by virtue of" there shall be inserted "paragraph 2 of Schedule 3 to the Postal Services Act 2000 as it has effect by reference to",
4. for "that Act" there shall be substituted "the Post Office Act 1969 or any enactment reproducing its effect", and
5. for "the Post Office", where it appears for the last time, there shall be substituted "the Post Office company".

Superannuation Act 1972 (c.11)

13. In Schedule 1 to the Superannuation Act 1972 (kinds of employment in relation to which pension schemes may be made), in the list of "Other Bodies", there shall be inserted at the appropriate place—

"The Consumer Council for Postal Services."

House of Commons Disqualification Act 1975 (c.24)

14.—(1) Schedule 1 to the House of Commons Disqualification Act 1975 (offices disqualifying for membership) shall be amended as follows.

(2) In Part II (bodies of which all members are disqualified), there shall be inserted at the appropriate place—

"The Consumer Council for Postal Services."

(3) In Part III (other disqualifying offices), there shall be inserted at the appropriate place—

"Director of the Post Office company (within the meaning of Part IV of the Postal Services Act 2000) being a director nominated or appointed by a Minister of the Crown or by a person acting on behalf of the Crown."

15. In Part II of Schedule 1 to the Act of 1975 the reference to the Postal Services Commission shall be construed as a reference to the Commission established by section 1 of this Act.

Rates (Northern Ireland) Order 1977 (S.I.1977/2157 (N.I.28))

16. In paragraph 3(4) of Schedule 9A to the Rates (Northern Ireland) Order 1977 (rural rate relief for post offices etc) for the words from "the Post Office" to "1953)" there shall be substituted "a universal service provider (within the meaning of the Postal Services Act 2000) and in connection with the provision of a universal postal service (within the meaning of that Act)".

17.—(1) Section 91 of the Representation of the People Act 1983 (candidate's right to send election address post free) shall be amended as follows.

(2) In subsection (1)—

1. for the words "Post Office regulations" there shall be substituted "such reasonable terms and conditions as the universal service provider concerned may specify",
2. after the word "of", where it first appears, there shall be inserted "any",
3. after the word "postage" there shall be inserted "which would otherwise be made by a universal service provider", and
4. for the words "regulations" in paragraph (a) there shall be substituted "terms and conditions".

(3) In subsection (2)—

1. after "any" there shall be inserted "such", and
2. after "postage" there shall be inserted "as mentioned above".

(4) In subsection (3) for "the Post Office" there shall be substituted "the universal service provider concerned".

(5) After subsection (4) there shall be inserted—

"(5) In this section "universal service provider" has the same meaning as in the Postal Services Act 2000."

18. After section 200 of that Act there shall be inserted—

Mental Health Act 1983 (c.20)

19.—(1) Section 134 of the Mental Health Act 1983 (correspondence of patients) shall be amended as follows.

(2) In subsection (1) for "the Post Office" there shall be substituted "the postal operator concerned".

(3) In subsection (9)—

1. after "this Act" there shall be inserted "and "postal operator" and",
2. for "has", where it appears for the second time, there shall be substituted "have", and
3. for "the Post Office Act 1953" there shall be substituted "the Postal Services Act 2000".

Insolvency Act 1986 (c.45)

20. In section 371(1) of the Insolvency Act 1986 (re-direction of bankrupt's letters etc.)—

1. for "the Post Office" there shall be substituted "a postal operator (within the meaning of the Postal Services Act 2000)",
2. for "the Post Office Act 1953" there shall be substituted "that Act", and
3. for "them" there shall be substituted "the operator concerned".

Local Government Finance Act 1988 (c.41)

21. In section 43(6D)(a) of the Local Government Finance Act 1988 (rural rate relief for post offices etc) for the words from "the Post Office" to "1953)" there shall be substituted "a universal service provider (within the meaning of the Postal Services Act 2000) and in connection with the provision of a universal postal service (within the meaning of that Act)".

Value Added Tax Act 1994 (c.23)

22.—(1) The Value Added Tax Act 1994 shall be amended as follows.

(2) In section 16(2) (application of customs enactments) for "section 16 of the Post Office Act 1953" there shall be substituted "section 105 of the Postal Services Act 2000".

(3) In item 4 of Group 8 of Part II of Schedule 8 (zero-rating: transport of passengers) for "the Post Office" there shall be substituted "the Post Office company".

(4) In Group 3 of Part II of Schedule 9 (exemptions for postal services)—

1. for "the Post Office" in items 1 and 2 there shall, in each case, be substituted "the Post Office company", and
2. for the words in Note (1) from "the Post Office Act 1953" to "telegram" there shall be substituted "the Postal Services Act 2000".

Value Added Tax Regulations 1995 (S.I.1995/2518)

23. In regulation 2 of the Value Added Tax Regulations 1995 (interpretation) in the definition of "datapost packet"—

1. for the words "the Post Office" there shall be substituted "the Post Office company",
2. after "a post office" there shall be inserted "of the Post Office company", and
3. after "United Kingdom", where it appears for the fifth time, there shall be inserted "by that company".

Criminal Procedure (Scotland) Act 1995 (c.46)

24. In section 11 of the Criminal Procedure (Scotland) Act 1995 (jurisdiction over certain offences committed outside Scotland), after subsection (4) there shall be inserted—

Local Government and Rating Act 1997 (c.29)

25. In Schedule 2 to the Local Government and Rating Act 1997, in paragraph 3(4)(a) (relief from non-domestic rates for rural post offices) for the words from "the Post Office" to "1953)" there shall be substituted "a universal service provider (within the meaning of the Postal Services Act 2000) and in connection with the provision of a universal postal service (within the meaning of that Act)".

Northern Ireland Act 1998 (c.47)

26. For paragraph 7 of Schedule 3 to the Northern Ireland Act 1998 (reservation for the Post Office etc.) there shall be substituted—

Postal Services Regulations 1999 (S.I. 1999/2107)

27. In Regulation 2(1) of the Postal Services Regulations 1999 (designation of Secretary of State and Postal Services Commission as national regulatory authorities for the postal sector in the United Kingdom) the reference to the Postal Services Commission shall be construed as a reference to the Commission established by section 1 of this Act.

SCHEDULE 9

REPEALS AND REVOCATIONS

EXPLANATORY NOTES

SHOW EXPLANATORY NOTES

INTRODUCTION

1. These explanatory notes relate to the Postal Services Act which received Royal Assent on 28 July 2000. They have been prepared by the Department of Trade and Industry in order to assist the reader of the Act and help inform debate on it. They do not form part of the Act and have not been endorsed by Parliament.

2. The notes need to be read in conjunction with the Act. They are not, and are not meant to be, a comprehensive description of the Act. So where a section or part of a section does not seem to require any explanation or comment, none is given.

SUMMARY

3. The Postal Services Act 2000 provides for the Post Office to be converted from a statutory corporation to a public limited company formed and registered under the Companies Act 1985, with ownership remaining with the Crown.

4. The Act introduces a new system of licensing and regulation for postal service operators/providers operating in the area of the market currently reserved largely as a monopoly for the Post Office. This is called the reserved (or licensed) area. The Act gives the independent regulator, the new Postal Services Commission (the Commission), new duties and powers to protect the interests of users of postal services. In particular, it enshrines the universal service obligation in primary legislation and makes it the duty of the Commission to ensure the delivery of this universal service at a uniform tariff. Subject to this duty, the Commission is required to further the interests of users, wherever appropriate by the promotion of greater competition in postal markets. The Commission will be able to promote competition through recommending changes to the scope of the reserved area and by permitting licensed competition within the reserved area. The Commission will also have responsibility for setting quality standards and regulating prices.

5. Consumers are given greater protection through replacing the Post Office Users' National Council with the Consumer Council for Postal Services. The creation of this body brings consumer representation in the postal services market into line with the provision for other utilities.

BACKGROUND

6. This Act implements measures proposed in the White Paper,Post Office Reform: a world class service for the 21st century, published on 8 July 1999. The White Paper sets out the Government's proposals to modernise the Post Office and postal services markets through a number of key reforms. The reforms are intended to:

• introduce a more arm's-length commercial relationship with Government, including the approval of a five year strategic plan within which the Post Office and the future Post Office company have greater freedom to develop new products and services; invest; price commercially; and borrow for growth investments;
• create a new independent regulator, the Postal Services Commission, to promote and protect customer interests, regulate prices, and promote competition;
• strengthen consumer representation through the restructuring of the Post Office Users' National Council which will become the Consumer Council for Postal Services;
• increase resources for the Post Office company, by more than doubling the proportion of post tax earnings which the Post Office company can use for investment;
• convert the Post Office to a plc to underline the commercialisation of the business;
• protect the universal service obligation and uniform tariff;
• maintain a commitment to a nationwide network of post offices with the Government for the first time setting minimum criteria for access to counters' services.

7. A number of these measures have been implemented already, through administrative action. These include giving greater commercial freedom to the Post Office Board to run the business within the terms of an agreed five-year strategic plan, increasing the proportion of profits that the Post Office can use for investment and giving the Post Office greater freedom to borrow. The Postal Services Regulations 1999 (SI 1999/2107) completed the implementation of the EU Directive into UK law and created a Postal Services Commission. The aim of the Postal Services Act 2000 is to enable Government to complete this package of reforms. The reforms comply with the requirements of the EU Postal Services Directive (97/67/EC). The Act will re-enact those obligations set out in the Regulations.

8. The Post Office is currently a publicly owned, statutory corporation, established under the Post Office Act 1969. That Act and the BritishTelecommunications Act 1981 set out the responsibilities of Government towards postal services and give the Post Office its powers and duties. Since the 1969 Act became law the postal services market has developed significantly, and the Postal Services Act 2000 redefines the roles of the Government and the Post Office to reflect those changes. The Postal Services Act 2000 will enable the Post Office to be transformed into a public limited company formed and registered under the Companies Act 1985 and subject to normal company law. The Memorandum and Articles of Association of the Post Office company will be published in the normal way. All the shares in the new company will be owned by the Crown. There can be no disposal of shares without further primary legislation, except in the case of a share sale or swap between the Post Office company and a partner to cement a commercial alliance, which will require approval from both Houses of Parliament. Similar restrictions apply to the disposal of shares in any subsidiary company directly engaged in providing the universal postal service.

9. Decisions relating to the Post Office monopoly are currently taken by the Secretary of State for Trade and Industry under provisions in the British Telecommunications Act 1981. The Postal Services Regulations 1999, tabled on 26th July 1999, designated the Postal Services Commission as a new independent regulator for postal services, responsible for advising the Secretary of State on postal issues. Provisions in the Act replace this advisory body with a new fully independent regulatory body, along the lines of those in the privatised utility industries (e.g. Office of Telecommunications), by giving the Commission statutory duties and powers to issue licences, to regulate prices, to enforce the monopoly, to introduce greater competition and to maintain a universal service at a uniform tariff.

10. At present, the Post Office has the exclusive privilege of delivering mail costing less than £1 (or weighing less than 350 grams) within the UK, subject only to a handful of exceptions provided through niche and class licences. The Act makes it necessary for any person operating in the reserved area, including the Post Office company, to be licensed by the Postal Services Commission. The Commission will be responsible for recommending the level of the reserved area in future and judging how far to open up the market to further competition. It will also be given powers of investigation and enforcement, including the power to impose monetary penalties for breach of licence conditions.

11. The Post Office Users' National Council, which represents consumer interests, is replaced by the Consumer Council for Postal Services. The Bill provides this new body with a central role in the new regulatory framework, monitoring service standards that users can expect and actingas a focus for consumer issues and complaints. Its powers are strengthened, in particular through wider access to relevant information from the Post Office company and other licence holders.

12. The main pieces of legislation currently governing the Post Office are the Post Office Acts 1953 and 1969 and the British Telecommunications Act 1981. This Act seeks to consolidate the postal services provisions in these Acts, by repealing or redrafting relevant sections, to provide a more simple and modern legal framework in which the Post Office company and other licensed persons can operate.

COMMENTARY ON SECTIONS

PART I
INTRODUCTORY

Section 1: The Postal Services Commission

13. Section 1 creates the Postal Services Commission .This body will be the independent regulator of licensed postal operators and replaces the advisory body, also called the Postal Services Commission, which is abolished by the Act. In these Notes, references to "the Commission" are to the Commission established by section 1.

Section 2: The Consumer Council for Postal Services

14. Section 2 creates a new consumer body to be known as the Consumer Council for Postal Services . The existing user-representative bodies in the UK, which are limited in their scope to representing users of Post Office services, are abolished. In these notes, references to "the Council" are to this Council.

Section 3: Duty of the Commission to ensure provision of a universal postal service

15. Section 3 sets out the primary duty of the Commission, which is to exercise its functions in a manner best calculated to ensure the provision of a universal postal service. In pursuance of this duty it has power to require a person licensed to provide postal services under Part II of the Act ("a licence holder") to provide a universal service or part of such a service. This is to be read with section 5 which sets out other duties of the Commission.

Section 4: Provision of a universal postal service: meaning

16. Section 4 sets out the meanings of a universal postal service and of a universal service provider. These definitions comply with those required under the EU Postal Services Directive (97/67/EC). A universal service provider is described for the purposes of this Act as any person who the Secretary of State has notified to the European Commission as being a provider of universal postal services in the UK and on whom the Secretary of State has served a notice informing him of that fact. It also provides that in the event that the Directive lapses (and with it the requirement to notify the Commission of universal service providers) that references in the Act to a universal service provider are to be construed as references to any person who is treated by the Secretary of State as a universal service provider for the purposes of the Act and on whom the Secretary of State has served a notice informing him of that fact.

Section 5: Other duties of the Commission in the consumer interest

17. Subject to the duty to ensure the provision of a universal postal service as set out in section 3,section 5 places a duty on the Commission to exercise its functions in a manner which will further the interests of users of postal services, wherever appropriate by promoting competition.

18. In performing these duties the Commission is to have regard to, amongst other things, the interests of the disabled or chronically sick, pensioners, those on low incomes, and those located in rural areas. It also provides for the Commission to have regard to the promotion of efficiency and economy on the part of postal operators; and the need to ensure that they are able to finance activities authorised or required by their licences.

PART II
LICENCES FOR POSTAL SERVICES

Section 6: Restriction on provision of postal services

19. The Post Office currently has the exclusive privilege of delivering letters within the United Kingdom with a value of less than £1 or weighing less than 350 grams and it is an offence to infringe the privilege.

20. Under the Act, the monopoly will be replaced by a system oflicensing. Licence holders will be able to convey, in accordance with the terms of their licence, letters worth less than £1 or weighing less than 350 grams (seesection 7). Subsection (2) makes it an offence to convey letters without the necessary licence.

21. Subsection (1) establishes that no person shall convey a letter without a licence granted by the Commission. Exceptions to this prohibition are set out at section 7 .

22. Subsections (2) to (5) create three methods of enforcing the prohibition in subsection (1). The first is to bring criminal proceedings for an offence under subsection (2). The second is to bring civil proceedings for an injunction interdict or other appropriate relief or remedy under subsection (4). Criminal prosecutions can only be instituted by or on behalf of the Commission or the Secretary of State or, in Scotland, will be dealt with by the Lord Advocate. (The Lord Advocate generally controls prosecutions in Scotland.) Civil proceedings under subsection (4) may be brought by, or on behalf of, the Commission or the Secretary of State. There is also provision in subsection (5) enabling civil proceedings to be brought by any person who suffers loss or damage.

23. Subsection (6) makes clear that conveyance for the purposes of section 6 and section 7(1) includes the incidental acts of receiving the letter, collecting or delivering it.

Section 7: Exceptions from section 6

24. Section 7 sets out exceptions from the general prohibition in section 6(1).

25. Subsection (1) exempts letters conveyed for a payment of not less than £1 or weighing not less than 350 grams.

26. Subsection (2) sets out further detailed exceptions. They include activities currently exempted as "class licences", such as the document exchange system used by lawyers and other professionals. The section then defines exactly what is meant by these exceptions.

Section 8: Power to modify section 7 by order

27. Section 8 allows the Secretary of State acting on the recommendation of the Commission to modify by order section 7. This could, for example, be used to add a further exception to the general prohibition or modify the value or weight specified at section 7(1)(a) and (b). Such an order would be subject to approval by a resolution of both Houses of Parliament. Where the Secretary of State has received a recommendation from the Commission to amend the reserved area and the Secretary of State does not act upon it, he must place a report containing his reasons before Parliament.

Section 9: General power to suspend the restriction

28. Undersection 9 the Secretary of State may, on the recommendation of the Commission, suspend the operation of section 6 and allow any person to convey letters.

Section 10: Emergency power to suspend the restriction

29. Undersection 10 the Secretary of State may in the national interest suspend the licensing regime for a time-limited period not exceeding six months. Non-licensed persons would then be able to convey letters within the reserved area without penalty.

Section 11: Licences: general

30. Section 11 allows the Commission to grant licences authorising the licence holder to carry out the activities described by the licence. To that extent the general prohibition in section 6(1) does not apply to him.

Section 12: Licences: grant

31. Section 12 details the procedures that must be followed before a licence is issued including provisions about giving notice and receiving representations.

Section 13: Licences: conditions and other provisions

32. Section 13 gives the Commission the authority to include in a licence such provisions as it considers appropriate, including provisions which do not relate to anything authorised by the licence (including, for example, the provision of all or part of a universal postal service). Under subsection (4) the Commission must consult a person who is to be granted a licence about the conditions it intends to include in their licence.

Section 14: Modification of licences by agreement

33. Sections 14 - 21 provide a system for licence modification, similar to that seen in utilities regulation. Section 14 allows for licence modifications to be made by agreement between the licence holder and the Postal Services Commission. Before making any such modification the Postal Services Commission must publish a notice stating what the modifications are, the effect of them and the reasons for them and serve copies on the Secretary of State, the licence holder and the Council. Under subsection (5) the Secretary of State may direct the Postal Services Commission not to make a proposed modification if he considers that the modification should be made, if at all, following a Competition Commission reference under the procedures in this Part.

Section 15: References to the Competition Commission

34. Section 15 allows the Postal Services Commission to make references to the Competition Commission requiring the latter to investigate and report on whether:-

• matters specified in the reference and which relate to the provision of postal services whose provision is authorised or required by a licence operate against the public interest or may be expected to do so; and
• if so, whether the effects adverse to the public interest which the matters have or may be expected to have could be remedied or prevented by modifying conditions of the licence.

35. The Postal Services Commission may vary the terms of a reference. They may also specify what adverse effects they believe matters specified in the reference may be expected to have and any modifications of the licence by which it considers that those effects could be remedied or prevented. The Postal Services Commission shall give the Competition Commission any related information or assistance that itconsiders appropriate or which has been requested by the Commission.

Section 16: Reports on references

36. Section 16 provides that the Competition Commission shall make definite conclusions on the matters referred to it, and specify remedies where appropriate. The Competition Commission's report shall be made to the Postal Services Commission who shall, if required to do so by the Secretary of State, exclude from the published report such matters he believes may be against the public interest or the commercial interest of a person.

Section 17: Modification following report

37. Under this section, where the Competition Commission has identified matters operating against the public interest and concluded that remedies could be made by licence modifications, the Postal Services Commission shall make such modifications to the licence conditions as it considers appropriate for the purpose of remedying or preventing the adverse effects specified in the report.

38. The Postal Services Commission shall give notice of its intended modifications. After this the Postal Services Commission shall make such modifications if after four weeks the Competition Commission has not issued a direction undersection 18 .

Section 18: Power of intervention of the Competition Commission

39. This section allows the Competition Commission the power to direct the Postal Services Commission not to make modifications under section 17 if it considers that the modifications proposed by the Postal Services Commission are not appropriate for the purpose of remedying or preventing all or any of the adverse effects specified by its report. Undersubsection (5) of this section the Competition Commission may make its own licence modifications.

Section 19: Procedural requirements in relation to modifications

40. Section 19 sets out the procedural requirements for licence modifications following a report by the Competition Commission.

Section 20: Application of competition legislation to references etc.

41. Section 20 provides for the application of competition legislation to references. The purpose and effect of this section is to ensure consistency between the Competition Commission's procedures in relation to a reference under this Part of the Act and with its procedures in relation to its (relevant) functions under competition legislation. For example, it deals with the treatment of witnesses and documents, time limits on reports and penalties for false and misleading information. Details of these provisions are set out in the relevant legislation and not in this Act.

Section 21: Modification by order under other enactments

42. Section 21 allows for the modification of licences as a result of investigations and reports under the Fair Trading Act 1973.

Section 22: Final orders

43. Sections 22-29 lay down the powers of the Commission to make final and provisional enforcement orders in relation to breaches of licence conditions, and the procedures to be followed. Under section 22,final orders may be issued where the Commission is satisfied that a licence holder is contravening any condition of his licence or is likely to do so. An order makes such provision as is needed to secure compliance with the licence condition and shall require the licence holder to do, or not to do, such things as specified.

Sections 23 and 24: Provisional orders

44. Where the Commission is not satisfied, but nonetheless it appears to the Commission that there is or is likely to be a contravention and that an order should be made, it may impose a provisional order lasting up to 3 months. If the Commission is subsequently satisfied, it shall confirm the provisional order.

Section 25: Exceptions from the duty to make or confirm enforcement orders

45. This section provides that the duty to make orders does not apply where the duties imposed under sections 3 and 5 on the Commission preclude it from doing so, the licence holder has agreed to take and istaking all the steps that the Commission considers appropriate, or the contraventions are trivial.

Sections 26 and 27: Procedural requirements

46. These sections set out the steps the Commission must follow when making orders, such as notice provisions.

Section 28: Validity of enforcement orders

47. This section allows a licence holder to whom a final or provisional order relates to appeal to the court on the grounds that the making of the order by the Commission was not within their powers under sections 22, 23 or 24 or that any of the requirements of sections 26 and 27 were not met. The court may quash the order.

Section 29: Effect of enforcement orders

48. Section 29(1) makes it a duty of licence holders to comply with a final or provisional order.

49. Section 29(6) makes it clear that if the Commission brings civil proceedings to enforce a final or provisional order, it shall not prevent others with a right to claim from bringing their own actions against the licence holder.

Section 30: Financial penalties

50. Section 30 gives the Commission power, where it is satisfied that a licence holder has contravened or is contravening a condition of his licence, to impose a penalty on the licence holder. The penalty must be of such amount as is reasonable and is limited to a maximum of 10% of the turnover of the licence holder determined in accordance with provisions to be specified in an order made by the Secretary of State.

Section 31: Statement of policy in relation to penalties

51. Section 31 provides that the Commission shall after consulting the Council and others prepare and publish a statement of their policy in relation to the imposition of penalties and the determination of their amount.

Sections 32 and 33: Penalties

52. Sections 32 and 33 lay down the procedures the Commission must follow before imposing a financial penalty including giving notice and allowing for representations, and procedures that may follow from the notice including variation of penalties.

Section 34: Time-limits on the imposition of penalties

53. Section 34 sets out time limits on the Commission's ability to impose financial penalties.

Sections 35 and 37: Interest and payments by instalments; recovery of penalties

54. Sections 35 and 37 cover the payment of interest on unpaid penalties and the recovery of unpaid penalty payments.

Section 36: Appeals

55. Section 36 allows licence holders to appeal against penalties to the court (the High Court in England and Wales or Northern Ireland or the Court of Session in Scotland). The court may quash the penalty or order a reduction in the penalty or in certain cases substitute a different date for payment of the penalty.

Section 38: Register

56. Section 38 requires the Commission to keep a register of licences, licence modifications, revocations and surrenders, directions, determinations, consents and approvals given under a licence, the terms of final and provisional orders and revocations, and penalties imposed. Safeguards are provided to ensure that as far as practicable matters relating to the affairs of a person are not entered in the register if that could be seriously prejudicial to that person's interests. In addition, the Secretary of State may direct the Commission not to make an entry where it would in his view be against the public interest or a person's commercial interests to do so. The register is to be available to public inspection, and copies may be obtained, subject to a reasonable fee.

Section 39: Recovery of costs of the Council etc.

57. Section 39 enables the Secretary of State to direct that licence conditions shall include paying for the Consumer Council and its start up costs. It also enables the Secretary of State to direct the Commission in any matter falling to be determined under such a licence condition.

Section 40: Directors' remuneration

58. Section 40 requires companies which are also licence holders under the Act to disclose the links, if any, between the achievement of service standards in the activities covered by their licence and the remuneration of their directors. If no such links exist, this must also be disclosed. The section sets out the criteria for determining whether a licence holder must comply with the provisions of the section and the disclosure requirements which then apply. The requirement to disclose what links, if any, exist between service standards and remuneration is intended to encourage companies to establish and strengthen such links and to stimulate improvement to service standards.

Section 41: Free services for the blind and partially sighted

59. Section 41 gives the Secretary of State powers to direct the Commission to impose a licence condition requiring the licensee to provide free postal services for blind or partially sighted people. The Secretary of State shall consult the Commission and the Council before giving any directions. The section is designed to ensure the continuation of existing non-statutory practice by the Post Office who convey certain items, known as Articles for the Blind, free of charge for blind and partially sighted people.

PART III
OTHER FUNCTIONS OF THE COMMISSION AND THE COUNCIL

Section 42: Duties in relation to public post offices

60. Section 42 imposes a duty on the Commission, in consultation with the Council, to provide advice and information to the Secretary of State about the number and location of public post offices and their accessibility to users. In the Act, a public post office means any post office from which any postal services are provided directly to the public (whether or not together with other services).

Section 43: Duties in relation to social and environmental matters

61. Section 43 provides that the Commission, in exercising its functions, should have regard to any guidance issued by the Secretary of State issued under this section. Such guidance, which will need to be laid before each House of Parliament and subsequently published, will be concerned with social and environmental policies which may include policy on ensuring access to the post office network.

Section 44: Review and information

62. Section 44 requires the Commission to keep under review and collect information about the provision of postal services in the United Kingdom, other member States of the European Community and elsewhere in order to facilitate the exercise of its functions, and to enable comparisons to be made between the efficiency and economy of different postal operators.

63. It also provides for the provision of information, advice and help to the Secretary of State regarding any matter in relation to which the Commission has a function; and for the collection of such information as is necessary for it to comply with a requirement of the Council undersection 58(1) .

Section 45: Annual and other reports: the Commission

64. The Commission is required to make an annual report to be sent to the Secretary of State and published. Section 45(2) specifies what the report should include. The Commission also has the power to make other reports in respect of its functions.

Section 46: Publication of information and advice: the Commission

65. Section 46 allows the Commission to publish information and advice to universal service providers, licence holders who are not universal service providers and users of postal services. The Commission is required, so far as practicable, to ensure that any such publication does not seriously and prejudicially affect a person's interests or, if it does, that the person consents to publication or publication is in the public interest.

Section 47: Power of the Commission to require information

66. Section 47 provides powers for the Commission to require information and documents from any person for any relevant purpose; "relevant purpose" is defined in subsection (6) . But no person may be required to provide information or documents which he could not be compelled to produce or supply in evidence in civil proceedings before the court.

Section 48: Information powers: enforcement

67. Section 48 makes it an offence for a person, without reasonable excuse, to fail to provide information and documents required by a notice under section 47. An offender is liable on summary conviction to a fine not exceeding level 5 on the standard scale. Under subsection (4) it is an offence for a person to alter, suppress or destroy documents which he has been required to produce, or knowingly or recklessly to make a false statement.

Section 49: Powers of entry and seizure

68. Section 49 provides a power of entry and seizure where, on an application by a constable or the Commission, a justice of the peace or sheriff is satisfied that there are reasonable grounds for suspecting that a person has committed an offence under section 6. A warrant may be issued for an appointed person to enter premises, search for articles or documents, and seize and remove items. In order to respect the principle of the inviolability of the mail, the power to seize documents does not extend to items of mail. The section also sets out procedures and powers in relation to the use of a warrant.

Section 50: Codes of practice

69. Section 50 provides that the Commission shall prepare, and may revise, a code of practice governing the discharge of its functions. In preparing or revising the code the Commission shall consult the Secretary of State, the Council, universal service providers, licence holders who are not universal service providers, and such other persons as the Commission considers appropriate. The code and any revisions must also be published.

Section 51: Relevant postal issues

70. Section 51 lays the foundations for setting out the functions of the Consumer Council for Postal Services by defining the postal issues and services that are to be covered. Relevant postal issues are defined by reference to relevant postal services. Relevant postal services are defined as those provided in connection with the provision of a universal postal service and any other postal services provided by licence holders in accordance with a licence under Part II.

Section 52: Provision of advice and information to public authorities and licence holders

71. Section 52 gives the Council the duty of providing advice and information, representing the views of users in relation to relevant postal issues and making proposals on relevant postal issues to the Secretary of State, the Commission, the Competition Commission, other public authorities, universal service providers, licence holders who are not universal service providers and any person whose activities may affect the interests of users. Subsection (3) requires the Council to secure as far as practicable that no information is disclosed to a licence holder or person whose activities may affect the interests of users under this section which might seriously or prejudicially affect the interests of the person to whom it relates (unless by virtue of subsection (4) that person consents).

Section 53: Publication of information to users

72. Section 53 requires the Council to make available and gives it power to publish information for users of postal services about relevant postal issues and services, and the Council itself and its functions. It includes a similar provision about disclosure of information to that in section 52.

Section 54: Exercise of functions: general

73. Section 54(1) requires the Council to have regard to the interests of different users of relevant postal services including the interests of users in different areas.

74. Subsection (2) requires the Council to have regard to the interests of certain specified groups. The specified groups are qualified to make clear however, that this is not intended to be an exhaustive list and it should not be taken as implying that regard should not be had to the interests of other descriptions of persons.

75. Subsection (3) requires the Council, as far as practicable, to collect and review information about the provision of postal services and the interests and views of users and matters affecting them.

76. Subsection (4) requires or allows the Council to set up certain committees. It requires committees to be set up for each of Wales, Scotland, and Northern Ireland and for there to be at least one committee in relation to England. It allows for committees to be set up for England and for areas within England, Wales, Scotland, and Northern Ireland.

77. Subsection (5) sets out the purposes of a committee established under subsection (4), which are to provide advice and information to the Council about relevant postal issues affecting the area for which it is established and such other purposes as the Council may determine.

78. Subsection (6) requires the Council to maintain in each of England, Wales, Scotland, and Northern Ireland at least one office where users can apply for information.

Section 55: Annual and other reports: the Council

79. Section 55 requires the Council to make an annual report to be sent to the Secretary of State and published. The Commission also has the power to make other reports in respect of its functions. So far as practicable, the Council should exclude from the report information about a person which might seriously and prejudicially affect that person's interest (unless that person consents).

Section 56: Complaints referred to the Council

80. Section 56(1) provides that the Council shall investigate complaints by or on behalf of users of relevant postal services as it thinks appropriate if:

• the matter has previously been the subject of a complaint to a person providing the services concerned and has not been satisfactorily resolved, and
• it does not appear to the Council to be of a frivolous or vexatious nature.

81. Subsection (2) requires the Council to refer any complaint to the Commission if, as a result of an investigation under section 56(1) it considers that:

• a licence condition may have been contravened
• the matter is a referable matter (as defined insubsection (3) of section 56)
• it is appropriate to do so.

82. Subsection (3) requires the Council to agree with the Commission what are referable matters for the purposes of subsection (2)(b) .

Section 57: Power of the Council to investigate other matters

83. Section 57(1) allows the Council to investigate any matter, not being a matter it has a duty to investigate under section 56 which appears to it to relate to the interests of users of relevant postal services (defined in section 51) or which relates to the number and location of public post offices.

84. Subsection (2) allows the Council to send reports on any matter investigated under subsection (1) to specified public bodies.

85. Subsection (3) allows the Council, subject to the requirements of subsection (5), to send reports on matters investigated to persons who the Council thinks might have an interest in these matters, or to publish a report in any manner the Council considers appropriate.

86. Subsections (4) and (5) require the Council, so far as practicable, to exclude from any report sent to any person or published under subsection (3), any matter which might seriously or prejudicially affect the interests of the person to whom it relates (unless that person consents).

Section 58: Power of the Council to require information

87. Section 58 gives the Council the power to require information which it may reasonably require in the exercise of its functions from the Commission, universal service providers, or other licence holders. The Commission or other persons specified in this section, may refuse to supply information to the Council under certain circumstances.

Section 59: Provision of information by the Council to the Commission

88. Section 59 gives the Council the duty to provide to the Commission information which the Commission may need in order to carry out its functions. But this duty is limited by the Secretary of State having the power to make an order specifying the conditions in which the Council may refuse to provide information to the Commission. If the Council refuses to supply information to the Commission, it must give notice to the Commission explaining why it has reached this decision. The Commission has the power to publish this notice.

Section 60: Memorandum of understanding

89. Section 60 gives the Council and the Commission the duty to make arrangements on co-operation and exchange of information between them and on consistent treatment of matters which affect both of them, and also the duty to prepare a document setting out these arrangements (a Memorandum of Understanding; MoU). The Council and the Commission have the duty to send this MoU to the Secretary of State who has the duty to lay it before each House.

Section 61: Forward work programmes

90. Section 61 provides that the Commission and the Council shall publish forward work programmes before the beginning of each financial year with a description of the projects each intends to undertake during that year. Such descriptions need not include routine activities in exercise of their functions. The description of the projects shall cover the objectives and the estimated costs to be incurred during the year in question.

PART IV
REORGANISATION OF THE POST OFFICE

Section 62: Transfer of property etc. to nominated company

91. Section 62 permits the Secretary of State, after consulting the Post Office, to transfer by order all the property, rights and liabilities of the Post Office to a company wholly owned by the Crown which has been formed under the Companies Act 1985. He may vary or revoke the order with a subsequent order before any transfer has taken place. Further provisions about the transfer are made in Schedule 3.

Section 63: Government holding in the Post Office company and certain subsidiaries

92. Section 63 requires the Post Office company or any of its wholly owned subsidiaries to issue securities (securities are defined in section 82) upon the direction of the Secretary of State with the consent of the Treasury. Those securities shall, as directed by the Secretary of State, be issued to the Treasury or the Secretary of State, or to a person approved for the purpose of a disposal under section 67, or to the Post Office company or a relevant subsidiary (as defined in subsections (8) and(9)). Section 79 has the effect that nominees may be appointed by the Treasury or the Secretary of State for the purpose of receiving securities issued under this section. The Secretary of State's power to direct for the purpose of section 63 ceases in the event that the Crown no longer wholly owns the Post Office company.

93. Securities issued under this section can be issued at such times and on such terms as the Secretary of State directs, but any shares issued will bear a nominal value, as directed by the Secretary of State and be treated as if fully paid for the purposes of the Companies Act 1985 or the Companies (Northern Ireland) Order 1986.

94. A relevant subsidiary is defined in subsection (8) as one which delivers, collects, receives, sorts or conveys relevant postal packets (of the type defined in section 4) in the United Kingdom or which provides a registered postal service in the United Kingdom or any other subsidiary of the Post Office company which holds shares or share rights in, or is connected to, any such subsidiary. A subsidiary is connected to another under subsection (9) for the purpose of the section if it forms part of a chain of subsidiaries of the Post Office company, each holding shares or share rights in the other, which includes the relevant subsidiary.

Section 64: Government investment in securities of the Post Office company and its subsidiaries

95. Section 64 empowers the Treasury or the Secretary of State (with Treasury consent) to acquire any securities issued by the Post Office company or any of its subsidiaries. The Secretary of State can only dispose of such securities with the consent of the Treasury. The Secretary of State does not require the consent of the Treasury for disposals permitted under section 67 nor for a disposal to the Treasury or the Treasury's nominee. Section 79 has the effect that nominees may be appointed by the Treasury or the Secretary of State for the purpose of this section.

Section 65: Restriction on issue of shares to third parties

96. Section 65 prevents shares or share rights in the Post Office company or any relevant subsidiary being issued to anyone other than the Treasury and the Secretary of State (or any nominee of either of them), unless approval has been given by Parliament under the procedure set out in section 67 to dispose of shares to a named third party. Subsection (2)(b) also permits shares or share rights in relevant subsidiaries being issued to the Post Office company or another relevant subsidiary of which the subsidiary concerned is itself a subsidiary.

Section 66: Restriction on disposals of shares to third parties

97. Section 66 prohibits the Treasury and the Secretary of State (or any nominee) disposing of shares or share rights in the Post Office company (or any relevant subsidiary) other than to each other, as permitted by subsection (3) . However, the prohibition does not apply if the prior approval of Parliament has been obtained in accordance with section 67 . This follows the policy, set out in the Government's White Paper (Post Office Reform, cmnd 4340), that after transformation to a Companies Act company, the Post Office company would remain Government-owned and shares would only be exchanged or sold in order to cement commercial strategic alliances.

98. Subsection (2) prohibits the Post Office company or any of its subsidiaries (or their nominees) disposing of shares or share rights in any relevant subsidiary (as defined in section 63), though subsection (4) permits their disposal to the company or another subsidiary (or their nominees). Again, in accordance with subsection(5), the prohibition does not apply if Parliamentary approval has been obtained under the procedure in section 67 .

Section 67: Approved disposals

99. Section 67 sets out the procedure to be followed in order to obtain the approval of Parliament to make share issues or disposals of shares or share rights which would otherwise be prohibited by sections 65 and 66.

100. Subsection (2) specifies the minimum information to be contained in a motion to be presented for the approval of both Houses.

101. Subsection (3) sets out the conditions that must be met before a motion relating to the disposal of shares or share rights in the Post Office company may be moved, notably that the company has agreed to take part in a joint venture or other partnership which it considers to be in its commercial interests, which involves the issue or disposal of shares or share rights in the Post Office company. In addition the motion may not be moved unless the Post Office company has recommended to the Secretary of State that the disposal takes place, the Secretary of State is satisfied that the issue or disposal secures the proposed arrangement and that it is in the commercial interests of the company; and the Treasury has given consent to the proposed issue or disposal.

102. Subsection (4) sets out the pre-conditions to be met before moving a motion relating to issue or disposal of shares or share rights in a relevant subsidiary (as defined in section 63) in order to enable the Post Office company or a relevant subsidiary to take part in a joint venture or other partnership. The pre-conditions are generally similar to those set out in subsection (3).

Section 68: Loans by the Secretary of State to the Post Office company and its subsidiaries

103. Section 68 empowers the Secretary of State, with the approval of the Treasury, to lend to the Post Office in any currency once it becomes a company and authorises the necessary funds to be provided from the National Loans Fund. The section provides for lending either to the Post Office company or direct to any of its subsidiaries on terms to be agreed (with the Treasury's consent) between the Secretary of State and the Post Office company/subsidiary, except that interest rates are to be as directed by the Secretary of State with the approval of the Treasury. The lending and issues from the National Loans Fund may be in any foreign currency if the loan is to be in that currency, as well as sterling. Any monies repaid to the Secretary of State in respect of interest or capital on the loan will be repaid into the National Loans Fund. The provisions of this section make section 5 of the National Loans Act 1968 applicable to the rate of interest payable on loans and the rate will be subject to the requirements of that section.

Section 69: Guarantees by the Secretary of State for the Post Office company and its subsidiaries

104. Section 69 empowers the Secretary of State to give guarantees in respect of any financial obligation of the Post Office company or its subsidiaries. This power is taken because under Treasury guidance, it is usual practice for nationalised industries which are borrowing from non-Government sources (e.g. to provide an overdraft facility) to obtain a Government guarantee to secure the cheapest available funds for the public sector. However, this may not be appropriate in all circumstances, and it is not envisaged that this power would be used often in the case of the Post Office or its subsidiaries.

105. The Secretary of State must make a statement to Parliament about the giving of any such guarantees as soon as practicable after they have been given. If any payments are made by the Secretary of State under a guarantee, the Secretary of State will direct the terms (as to interest and capital) on which the monies are repayable by the Post Office company or, as relevant, by the subsidiary.

106. As soon as practicable after the end of any financial year in which any monies were paid by the Secretary of State in respect of a guarantee, a statement will be laid before each House of Parliament stating the sums paid. A statement will also be laid before each House as soon as practicable after the end of each financial year regarding the amount of any outstanding debt or obligation which is the subject of the guarantee given by the Secretary of State. This will allow Parliament to be informed about the remaining risk under any outstanding guarantees. In addition, the statement laid must include any amounts received by the Secretary of State during the financial year concerned in repayment of sums, or interest on sums, paid by the Secretary of State in fulfilment of any guarantee given under this section. The statement must also include any amount outstanding and unpaid at the end of the financial year in respect of the sums paid by the Secretary of State. This will allow Parliament to be informed of what has been paid back to the Government by the Post Office company or its subsidiaries in respect of any guarantees fulfilled by the Secretary of State and what amounts remain to be repaid. These statements will cover both the principal and the interest and are intended as an aid to public accountability.

Sections 70, 72 and 74: Provisions about financial restructuring

107. Sections 70 and 72 are intended to facilitate the restructuring of the balance sheet by 1 April 2002, as announced in the White Paper. The balance sheet will be restructured in order to place the Post Office company on a more commercial footing and allow benchmarking against its competitors. At present the Post Office holds on its balance sheet the government securities and deposits with the National Loans Fund (NLF) which represent accumulated reserves, in effect accumulated dividends, which were not payable to the Consolidated Fund.

108. Section 70 empowers the Secretary of State with the consent of the Treasury by order to cancel any liability of the Post Office company or any of its subsidiaries, including any in respect of sums paid in fulfilment of guarantees, but not principal of or interest on loans owed to the Secretary of State and payable into the National Loans Fund or any form of taxation duty or fine. The Secretary of State must consult the Post Office company before extinguishing any of its liabilities and must consult that company and the subsidiary concerned before extinguishing any liabilities of a subsidiary. However, the Secretary of State may by order repeal the section, with the consent of the Treasury, and it would be the intention to do so once the purpose of the section is spent, i.e. the restructuring of the balance sheet of the Post Office company is complete.

109. Section 72 empowers the Secretary of State, after consultation with the Post Office company and with the consent of the Treasury, to give directions to the Post Office company requiring it to allocate amounts to general reserves or to reserves for a particular purpose; and to reallocate those reserves to other specified purposes. The Secretary of State may also direct the Post Office company to cause any of its subsidiaries to create such reserves or to reallocate them for other purposes.

110. The Secretary of State may also direct how amounts allocated to a reserve are to be applied and may require such amounts to be paid out as if they were profits available for distribution within the meaning of section 263(1) of the Companies Act 1985 or Article 271(1) of the Companies (Northern Ireland) Order 1986 (distributions to be made out of profits). This provision therefore enables the Secretary of State to require the payment of dividends out of these reserves.

111. Subsection (4) provides that no reserve created under this section shall count as an undistributable reserve for the purposes of section 264(3)(d) of the Companies Act 1985 or Article 272(3)(d) of the Companies (Northern Ireland) Order 1986 (restriction on distribution of assets). However, under subsection (5), amounts allocated to reserves, apart from any amounts which the Secretary of State has authorised to be applied as if they were profits available for distribution, shall be treated as if they were unrealised profits of the company (for the purpose of section 264(3)(c) of the Companies Act 1985 or article 272(3)(c) of the Companies (Northern Ireland) Order 1986). This means that the reserves created under this section would only be distributable once the Secretary of State has given a direction requiring their application as distributable profit.

112. This section enables the Government to extract as a dividend, payable to it and then into the Consolidated Fund, the Post Office company's holdings of government securities and deposits with the National Loans Fund which represent accumulated reserves.

113. Section 74 gives the Secretary of State further powers for the purposes of restructuring the balance sheet of the Post Office company by April 2002 by injecting debt to create a commercial level of gearing and removing from it value representing reserves accumulated because the company could not as a statutory corporation pay government a dividend. It enables the Secretary of State to create debt owed by the Post Office company including debt in the form of debentures or bonds. These powers are only to be exercised after consultation with the Post Office company and with the consent of the Treasury. They are not limited to the time when the company is wholly owned by the Crown as the timing of restructuring in relation to any commercial partnering of the Post Office cannot be predicted and flexibility is required. However the Secretary of State may by order repeal the section and it would be the intention to do so once the purpose of the section is spent, i.e. the balance sheet of the Post Office company has been restructured. The section contains a definition of "debt securities" for the purpose of Part IV of the Act and this includes debentures, bonds and loan stock.

Section 71: Limit on loans and other arrangements with government

114. Section 71 sets a limit of £5,000 million on the total of the Crown's financial arrangements with the Post Office company and any of its subsidiaries and defines what is to be included in the calculation of the figure. The Secretary of State may increase the limit set out in the Act by an order approved by a resolution of the House of Commons. The limit is in part required in order to provide assurance to Parliament that the Post Office company and its subsidiaries are not being afforded unlimited access to the National Loans Fund. The limit also provides assurance that unlimited calls may not be made on monies to be provided by Parliament.

Section 73: Statutory accounts of the Post Office company

115. Section 73 provides for continuity in the business across the transfer from statutory corporation to public limited company by providing that the Post Office's closing accounts are in effect also the Post Office company's opening statutory accounts. The section will mean that assets and liabilities of the Post Office are to be taken as transferred at the value given by the accounts of the Post Office for its last accounting year. It also means that anything done by the Post Office is treated for accounting purposes as if it had been done by the Post Office company. For example, the profits of the Post Office are carried forward and treated as profits of the Post Office company and the same would be true of losses, if there were any.

Section 75: Dissolution of the Post Office

116. Section 75 provides for the Post Office to continue in existence after the day of transfer of the business of the Post Office to the Post Office company, for a transitional period. It gives the Secretary of State the power to dissolve the Post Office by order, following consultation with the Post Office and Post Office company, once he is satisfied that nothing further remains to be done under paragraph 9 of Schedule 3 or an order made under the Act.

Section 76: Accounts of the Secretary of State in relation to loans

117. Section 76 requires the Secretary of State, at the Treasury's direction, to prepare an account in the form required by the Treasury showing:

• sums issued to him from the National Loans Fund for lending to the Post Office company and its subsidiaries;
• repayments to him in respect of those loans and payments of interest on them; and
• how he disposed of the sums issued to him for lending and of the repayments of and interest on loans made by him, the repayments and interest being payable by him into the National Loans Fund.

118. The account must be sent to the Comptroller and Auditor General by 30 November following the end of the financial year in question and he will examine, certify and report on the account and lay copies of it and his report before each House.

Section 77: Publicity requirements for certain accounts and reports of the Post Office company

119. Section 77 requires the Post Office company to send to the Secretary of State:

• a copy of all annual accounts on which the company's auditors have made a report under section 235 of the Companies Act 1985, and
• a copy of the auditor's report

as soon as is practicable after the report is made. The Post Office company must also send to the Secretary of State a copy of its directors' report made in respect of each financial year under section 234 of the Companies Act 1985 as soon as is practicable after the report has been approved and signed. The Secretary of State is required to lay a copy of the accounts and reports before both Houses of Parliament. In this section, "annual accounts" means annual accounts within the meaning of Part VII of the Companies Act 1985 which relate to any year which includes the appointed day or to any subsequent year.

Section 78: Information requirements on the Post Office company

120. Section 78 empowers the Treasury to require the Post Office company to provide information (for example, forecasts of its capital expenditure and profits) for the performance of its functions in relation to public sector finance. The Treasury may apply to the court for any default under section 78 to be made good.

Section 79: Exercise of functions through nominees

121. Section 79 empowers the Treasury, or the Secretary of State with the Treasury's consent, to appoint a person to act as their nominee for the purposes of section 63 (government holding in the Post Office company and its subsidiaries), section 64 (government investment in securities of the Post Office company) and section 74(3) and (4) (further provisions relating to the capital structure of the Post Office company). Any nominees shall hold and deal with the securities or debt securities on such terms and manner as directed by the Treasury, or with the consent of the Treasury, the Secretary of State.

Section 80: Shadow directors

122. Section 80 exempts the Secretary of State and the Treasury from certain administrative duties which would be imposed on them under the Companies Acts in respect of the Post Office company, in the event that either of them fell within the definition of "shadow director". A shadow director is defined by section 741(2) of the Companies Act 1985 as "a person in accordance with whose directions or instructions the directors of a Company are accustomed to act;". As detailed in the White Paper, the Government aims to reserve to itself controls over certain functions of the Post Office company, but the formulation of strategy and the running of the company will be the responsibility of the board of directors.

123. This section does not remove any of the substantive obligations and duties falling on a shadow director. The Secretary of State or the Treasury would still bear the same substantive responsibilities and liabilities as any other director of the Post Office company in so far as those responsibilities would require the Secretary of State or the Treasury to behave with due care and diligence towards the company. But, in the event that the Secretary of State or the Treasury was a shadow director, no useful purpose is served by obliging them to comply with the provisions specified which are of an administrative nature, such as section 288 which imposes obligations on a company to keep particulars of its directors (name, address and occupation) and to notify the registrar of any changes.

Section 81: Tax

124. Section 81 gives effect to the provisions in Schedule 4, which sets out the tax provisions in relation to the transfer of property, rights and liabilities from the Post Office to the Post Office company. The provisions ensure that the transfer is tax neutral i.e. the Post Office company will not gain any tax advantage from the transfer or suffer any tax disadvantage.

Section 82: Interpretation

125. Section 82(1) defines various terms used in Part IV of the Act. Subsections 2 and 3 clarify the interpretation of property, rights and liabilities of the Post Office.

PART V
OFFENCES IN RELATION TO POSTAL SERVICES

Section 83: Interfering with the mail: postal operators

126. Section 83 provides for it to be an offence for a person engaged in the business of a postal operator to delay or open postal packets without reasonable excuse. It amalgamates the content of offences previously included in the Post Office Act 1953. It specifies a number of cases that are not to be regarded as offences under the section.

Section 84: Interfering with the mail: general

127. Section 84(1) provides for it to be an offence if persons intentionally delay or open postal packets without reasonable excuse. It amalgamates the content of offences previously included in the Post Office Act 1953.

128. Subsection (3) makes it an offence for a person, intending to act to a person's detriment and without reasonable excuse, to open a postal packet which he knows or suspects has been incorrectly delivered to him.

129. Subsections (2) and (4) specify a number of cases that are not to be regarded as offences under the section.

Section 85: Prohibition on sending certain articles by post

130. Section 85 sets out criminal offences of sending postal packets by post which either contain:

• articles, creatures or anything likely to injure other postal packets in the course of transmission by post or postal workers. This does not apply where the postal operator has given general or specific permission for anything to be enclosed in a postal packet; or
• indecent or obscene material. It is also an offence if such material is on the packet or cover of the packet.

131. The offences apply to postal packets handled by any postal operator. The section replaces section 11 of the Post Office Act 1953.

Section 86: Prohibition on affixing advertisements on certain letter boxes etc.

132. Section 86 contains criminal offences in relation to the fixing of advertisements, documents, boards or things onto post offices, post boxes or other property belonging to, or used by universal service providers in connection with the provision of a universal postal service, and other damage or disfigurement to such property. This section replaces section 61 of the Post Office Act 1953.

Section 87: Prohibition on misleading descriptions

133. Section 87 contains criminal offences intended to prohibit a person unless he has the authority of the universal service provider concerned from:

• maintaining a letter box or post office and placing on them marks, words or letters with the purpose of deceiving members of the public into believing that a post box or post office is operated by a universal service provider;
• using words, letters or marks which signify or imply that a ship, vehicle, aircraft or premises are used by a universal service provider to collect, receive, sort, deliver or convey postal packets in connection with the provision of a universal postal service; or
• using words, letters or marks which imply that that person is authorised by a universal service provider to collect, receive, sort, deliver or convey packets in connection with the provision of a universal postal service.

134. A person also commits an offence by failing, without reasonable excuse, to comply with a notice given to him by the universal service provider to remove the words etc, or remove/close up the letter box. This section replaces section 64 of the Post Office Act 1953.

Section 88: Obstruction of business of universal service providers

135. Section 88 sets out criminal offences in relation to:

• the obstruction, without reasonable excuse, of persons engaged in the business of a universal service provider in execution of their duty in connection with the provision of a universal postal service;
• the obstruction, without reasonable excuse, of the business of a universal service provider while in any universal service provider's post office or related premises; and
• failing, without reasonable excuse, to leave a universal service provider's post office or related premises when asked to do so by a person engaged in the business of a universal postal service provider on the basis that they suspect the person is obstructingtheir business.

136. It also enables the police to remove from the premises a person who is reasonably suspected of committing an offence under this section. This section replaces section 65 of the Post Office Act 1953.

PART VI
UNIVERSAL POSTAL SERVICE: SUPPLEMENTARY

Sections 89, 90, 91 and 92: Schemes and limitation of liability

137. Sections 89, 90, 91 and 92 concern the legal relationship between a universal service provider and its customers in connection with the provision of universal postal services. They replace sections 28 to 30 of the Post Office Act 1969 which dealt only with the relationship between the Post Office and its customers. The new provisions provide for the same privileges to apply to a universal service provider if a condition of his licence is that he should provide a universal postal service.

138. These sections enable a universal service provider to make and operate schemes setting out terms and conditions for the provision of universal postal services (in place of contracts), which limit liability, in particular the liability for consequential losses. The purpose of having such schemes is to ensure that the universal service will continue to be provided. Where a universal service is provided through the use of post boxes (as is the case at present) there is no proof of posting or of the value of contents. The removal of immunity could result in universal service providers being forced to require proof of posting to determine eligibility for any compensation for service failure. These provisions provide for all universal service providers to have immunity to avoid this.

Section 93: Power to modify sections 89 to 92

139. Section 93 creates a power for the Secretary of State to modify sections 89 to 92 by order having first consulted the Commission, the Council, licence holders and any such persons as the Secretary of State considers appropriate. It is intended that the need for and scope of the provisions in sections 89 to 92 should be reviewed to ensure that they continue to be in the best interests of users of postal services. The purpose of this power is to ensure that the conclusions of any such review could be implemented without unnecessary delay.

Section 94: Power to require carriage of mail-bags by ship or aircraft

140. Section 94 provides that a universal service provider can in circumstances where there is no ready access to addresses by road, serve notice on the owner or operator of a ship or aircraft to carry mail bags in connection with the universal service. If the remuneration for providing such a service cannot be agreed, it can be determined by the Transport Tribunal or, where relevant, the Department for Regional Development in Northern Ireland.

Section 95: Provision relating to land

141. Section 95 gives effect to the provisions of Schedules 5 and 6, which relate, respectively to the compulsory acquisition of land by universal service providers and other provisions relating to land.

Section 96: Immunity from prosecution

142. Subsections (1) and (2) provide equivalent protection for persons engaged in the business of universal service providers against prosecution for possession of articles in the post where such articles are prohibited under any enactment or fail to comply with restrictions under any enactment on carriage or delivery as if they were a government department.

Section 97: Harbour charges on mail-bags

143. Section 97(1) and (2) protect the goods in the mail-bags of universal service providers and foreign postal administrations from harbour charges in respect of those goods.

144. Subsection (3) protects the mail-bags of universal service providers and foreign postal administrations from being detained by a harbour authority for non-payment of charges for a period of eight weeks so that they cannot be held up by a demand for immediate payment. This replaces section 66 of the Post Office Act 1969.

Section 98: Mail-bags not to be subject to control by harbour authorities

145. Section 98 sets out four cases in which harbour authorities may not detain mail-bags. It overrides any other statutory provisions. This replaces section 67 of the Post Office Act 1969 and extends the protection to mail-bags of all universal service providers. The cases are:-

• where a universal service provider is carrying the mail-bags himself in connection with the provision of a universal postal service;
• where another is carrying the mail-bags of a universal service provider on his behalf either within the UK or to a foreign destination;
• where mail-bags of a foreign administration are being carried by a universal service provider: and
• where a universal service provider is in charge of the mail-bags of foreign administrations in the United Kingdom in connection with the provision of a universal postal service.

Section 99: Common carriers

146. Section 99 states that universal service providers (so far as they are providing a universal postal service) are not "common carriers". According to the common law, a "common carrier" is a person who carries all goods of all persons wishing to use his services. He is bound to accept goods that are offered to him for carriage, but he may refuse to do so if he believes that he has lawful ground for such refusal. Being a "common carrier" has implications in terms of liability. Without this exemption universal service providers might be regarded as common carriers, which could make them absolutely responsible for the safety of goods entrusted to them for carriage. This would mean that they could be liable in certain circumstances if the goods they carry are lost or damaged, even without fault on their part.

Section 100: Certain exemptions from postage etc.

147. Section 100 provides for the exemption from postal charges for certain petitions and addresses forwarded or sent to Her Majesty, or to the Secretary of State for Northern Ireland, or sent to a member of either House of Parliament, the Scottish Parliament (or its Clerk), the Northern Ireland Assembly or of the Welsh Assembly. It also limits the amount of postage that the universal service provider may recover for the delivery of parliamentary proceedings.

PART VII
MISCELLANEOUS AND SUPPLEMENTARY

Section 101: Directions in interests of national security etc.

148. Section 101 provides a power to the Secretary of State to direct the Commission or a licence holder as he considers appropriate if he considers it expedient to do so either in the interest of national security or in order to discharge an international obligation; to meet the object of an international organisation of which the Government is a member or agreement to which they are party; or to enable the Government to become a member of such an organisation or party to such an agreement. The Directions should generally be laid before Parliament but there are exceptions to this on specified grounds. It is an offence to contravene a direction or, in certain circumstances, to disclose it.

Section 102: Power to ensure compliance with the Postal Services Directive

149. Section 102 provides a power for the Secretary of State to ensure compliance with the EU Postal Services Directive. The purpose of this power is to ensure that the Government's obligations are always met, in particular in the event that the reserved area is removed and with it the ability to impose the universal service obligation and related requirements through licence conditions.

150. The power only applies where the Secretary of State is satisfied that a Community obligation under the Postal Services Directive is not being met or will not be met and where he has been unable to obtain any undertakings from any person which are sufficient to satisfy him that the situation will be remedied. In that case the Secretary of State may make by order such provision as he considers appropriate to ensure that a universal service is provided.

151. An order under this section may in particular: confer or modify the functions of the Commission or the Council; require a postal operator to provide all or part of a universal postal service; specify terms and conditions for such services; provide for payment from public funds for any purpose of the order; and for the enforcement of provisions in the order.

152. In deciding whether to make any such order the Secretary of State will have regard to the likely impact of the order on the person on whom the requirement is to be imposed. Before making such an order he will consult with any such person.

Section 103: Subsidy for public post offices

153. This section will allow the Secretary of State to make a scheme for payments for the purpose of assisting in the provision of public post offices or assisting in the provision of services to be provided from public post offices. Where the payments are made for services, they must ultimately assist in the provision of public post offices.

154. The Secretary of State must set the terms of the scheme, but may specify another person to make the payments. If that person is a statutory body or an office holder the Secretary of State has power to alter their statutory functions to allow them to undertake functions under any scheme set up under this section.

Section 104: Inviolability of mails

155. Section 104(1) and (2) provide for mail-bags, packets in the post and their contents, which are not the property of the Crown, to be given the same immunity from examination, seizure or detention, as if they were the property of the Crown.

156. Subsection (3) provides for exceptions to the above immunities where the Commission is investigating an offence of delivery of letters without a licence or where Customs and Excise is to exercise its powers.

Section 105: Application of Customs and Excise enactments to certain postal packets

157. Section 105 applies customs legislation to postal packets. It re-enacts and updates the provisions contained in section 16 of the 1953 Post Office Act.

158. Subsection (1) applies customs and excise legislation to postal packets that are being imported, exported or in transit through the UK from or to any place outside the UK.

159. Subsection (2) provides a power, similar to the one in the 1953 Act, for HM Treasury to make regulations specifying how the legislation should apply. The power allows HM Treasury to make regulations:

• specifying which postal packets the section applies to;
• making any exceptions or modifications in how those acts apply;
• enabling a postal operator to perform the duties of an importer, exporter or remover;
• giving effect to arrangements for foreign postal packets;
• securing observance of the acts; and
• punishing contravention of the regulations.

160. Subsection (3) allows duties and charges applied through this section to be recovered by the postal operator concerned and subsection (4) allows for a certificate from the relevant postal operator to be evidence in proceedings for that recovery.

161. Subsection (5) defines the term "foreign postal packet" used in this section.

Section 106: Power to detain postal packets containing contraband

162. Section 106 permits postal operators to forward postal packets to the Commissioners of Customs and Excise. It re-enacts and updates the provisions contained in section 17 of the 1953 Post Office Act.

163. Subsections (1)and(2) allow postal operators to detain and forward to the Commissioners of Customs and Excise, any postal packet that they suspect contains goods which are subject to duty which has not been paid, or which are subject to legislation prohibiting or restricting their import or export.

164. Subsection (4)and(5) allow the Commissioners to open any postal packet that is forwarded to them under this section, in the presence of the addressee, or - if the addressee has been notified but fails to turn up or the address is overseas - in the addressee's absence.

165. Subsection (6) enables the Commissioners if they find any goods that are prohibited or on which duty has not been paid to take proceedings in relation to them. Subsection (7) specifies that if, upon opening, the Commissioners do not find any such goods they must forward or deliver the package to the addressee.

Section 107: Conditions of transit of postal packets

166. Section 107 permits a postal operator in certain circumstances to refuse transmission of a postal packet, detain and open it, make additional charges, return to its sender or forward it to its destination, or destroy or otherwise dispose of the packet. Subsection (2) has the effect that the provisions in subsection (1) should not be construed as placing any restriction on postal operators applying other terms and conditions to the transmission by post or otherwise of a postal packet. Subsection (3) makes it clear that the fact that a postal packet does not reach its destination because it is detained or destroyed or disposed of by a postal operator (on the grounds of a contravention of section 85 or other terms and conditions), should not prevent proceedings being brought against the sender. This applies to proceedings under this or other legislation.

Sections 108/109/110: Evidential provisions

167. Sections 108, 109 and 110 are intended to prevent delays in court cases arising from hearsay arguments.

168. Section 108 enables official marks of universal service providers in connection with the provision of the universal service or a foreign administration to be sufficient proof of the amount of postage due on a postal packet. It allows in legal proceedings for the recovery of postage or other sums due in respect of postal packets that the production of the packet with a universal service provider's or a foreign administration's stamp or endorsement on it is sufficient proof that the packet has been refused or rejected, is unclaimed or cannot be delivered for any other reason. It also states that a certificate of a universal service provider is sufficient proof that any mark, stamp or endorsement has been made by that universal service provider unless the contrary is shown. The section makes it clear that, in any legal proceedings, the person from whom a postal packet seems to have come will, unless the contrary is shown, be taken to be the sender of the packet.

169. Section 109 enables, on prosecution of an offence under the Act, evidence that an article is in the course of transmission by post or has been accepted by a postal operator for transmission by post will be sufficient proof that it is a postal packet. This applies to any offence in the Act. Subsections (2) and (3) apply certain provisions of the Theft Act to offences under sections 83 and 84 of the Postal Services Act.

170. Section 110 enables certification by a universal service provider to be sufficient proof, unless the contrary is shown, that any box or receptacle was provided by the provider for receiving and onward transmission of postal packets in connection with the provision of a universal postal service.

171. These sections replace sections 19, 72 and 78 of the Post Office Act 1953.

Section 111/112/113/114: Provisions relating to postal and money orders

172. These provisions, which replace those for postal and money orders in the 1953 and 1969 Post Office Acts, protect the Post Office company and bankers by limiting liability in certain circumstances (Section 111); allow the Post Office company to make schemes in relation to postal and money orders (Section 112); make provisions for the recoupment of losses on money orders wrongly paid to bankers (Section 113); and set out the treatment of special money orders issued by the Post Office company under an arrangement with a foreign Government or postal administration (Section 114). These provisions only apply to the Post Office company.

Section 115: Extension of existing powers relating to the Post Office

173. Section 115 extends certain existing powers of the Post Office (the statutory corporation) and the Crown under the Post Office Act 1969 and the British Telecommunications Act 1981 prior to the Post Office becoming a company. The purpose is to support the Government's policy of allowing the Post Office greater commercial freedom. The section provides:

• for the Post Office to enter into any financial transactions not already empowered by section 7 of the Post Office Act 1969 and the power will include, for example, power to enter into currency swaps required in connection with the business of the Post Office and its expansion outside the United Kingdom;
• for the Secretary of State, with the approval of the Treasury, also tomake loans direct to any subsidiaries of the Post Office, and not only to the Post Office itself;
• for the Secretary of State, with the approval of the Treasury, to make loans in foreign currencies to the Post Office or its subsidiaries. The monies will continue to be issued from the National Loans Fund, but may be issued in sterling or a foreign currency if the loan is to be in that currency;
• for the Post Office correspondingly to have powers to borrow in a foreign currency from the Secretary of State;
• for the limit on the Post Office's total indebtedness, as permitted under the British Telecommunications Act 1981 and including borrowing by any subsidiary, to be increased from £1,200 million to £5,000 million and for the removal of the ceiling up to which the limit may be increased, although any increase will still need to be authorised by an affirmative resolution order.

Section 116: The Postcode Address File

174. Section 116 requires the owner (currently the Post Office) of the database of United Kingdom postcodes (known as the Postcode Address File) to make it available to those who wish to use it, on reasonable terms and on possible payment of a charge. It also requires the owner to maintain it.

Section 117: Records of the former Postmaster General's department

175. Section 117 recreates a power similar to that in section 75(2) of the Post Office Act 1969 to enable the Secretary of State by order to vest in the Post Office company the property in the pre-1969 records of the Postmaster General and to give directions to the Post Office company in respect of making those records available to the Crown for inspection and copying. The order-making power in section 75(2) of the 1969 Act has never been exercised, and so the vesting of the pre-1969 records remains an outstanding matter from the 1969 Act.

Section 118: Supplementary provisions relating to the Council

176. Section 118 provides transitional provisions to facilitate the transfer of functions from the Post Office Users' National Council and the Country Councils for Scotland, Wales and Northern Ireland to the new Consumer Council for Postal Services. Subsections (1) and (2) enable the Secretary of State to make an order transferring property, rights and liabilities of the Post Office Users' National Council to the Council. Subsection (3) applies the provisions in Schedule 3 concerning vesting of property etc and other third party rights to the Post Office Users' National Council and the Council. Subsections (4) and (5) preserve the employment rights of any staff seconded from the civil service that choose to transfer to the Council.

Section 119: General restrictions on disclosure of information

177. Section 119 provides that the provisions of Schedule 7, which makes provision about disclosure of information, shall have effect.

Section 120: Offences by body corporate

178. Section 120 allows the directors, managers or other officers of a body corporate, to be subject to prosecution if a corporate body is found guilty of an offence under the Act, and it is proved that the offence has been committed with their consent, connivance or neglect.

Section 121: Service of documents

179. Section 121 provides for the ways in which documents may be served on persons, bodies corporate and partnerships.

Section 122: Orders and regulations

180. Section 122 sets out how the Secretary of State is to exercise his powers to make orders or regulations under the Act, and makes additional provisions in respect to his powers. It also sets out how the Treasury can exercise their power to make regulations under the Act.

Section 123: Directions

181. Section 123 requires a person to whom a direction is given to give effect to it. It further provides that any power conferred by this Act to give a direction includes the power to vary or revoke any such direction. Finally it provides that such directions should be in writing.

Sections 124 to 131 General and financial provisions

182. Section 124 summarises the financial provisions for the Act.

183. Section 127(1) confers the power to make such supplementary, incidental or consequential provision as the Secretary of State considers necessary or expedient for the general purposes, or any particular purpose of the Act or in consequence of any provision made by or under the Act or for giving full effect to the Act or any such provision.

184. Section 128 confers a similar power to section 127(1), but in relation to local enactments.

185. Section 130 provides that most of the provisions of the Act will be brought into force by commencement orders made by the Secretary of State. It permits different commencement dates for different purposes or areas. Some provisions come into force on Royal Assent, and section 115 (extending certain existing powers of the Post Office) comes into force two months after Royal Assent.

186. The Act is to apply throughout the United Kingdom.

SCHEDULE 1

THE POSTAL SERVICES COMMISSION

187. Schedule 1 sets out a series of detailed provisions regarding the membership and constitution of the Commission, staffing and supplementary powers.

188. Paragraph 1 provides that the Commission shall consist of a chairman and no fewer than three other members, each appointed to the Commission by the Secretary of State, and the chief executive.

189. Paragraph 2 gives a power to the Secretary of State to determine the terms of appointment of members of the Commission and requires appointed members to hold and vacate office in accordance with such terms.

190. Paragraph 3 provides that any appointment shall be for a period of not more than five years; but that previous membership does not preclude a further term.

191. It also provides that a member may resign, and that the Secretary of State may remove a member on grounds of incapacity or misbehaviour.

192. Paragraph 4 makes provision for the Commission to pay and remunerate its members. It also makes provision for the Secretary of State to authorise the Commission to pay compensation where a person ceases to be a member where in his view there are special circumstances.

193. Paragraph 5 provides the Commission with the duty to appoint a chief executive, and power to appoint other staff, on such terms and conditions of service as the Minister for the Civil Service may approve.

194. Paragraph 6 provides the Commission with a power to establish committees and sub-committees; and that these may include persons other than members of the Commission.

195. Paragraph 7 provides for the Commission to regulate its own proceedings, including quorum.

196. Paragraph 8 provides for the authentication of the Commission's common seal.

197. Paragraph 9 provides for a document executed under the seal to be received in evidence.

198. Paragraph 10 sets out the power of the Commission to delegate to any member, member of staff or any committee who is authorised by the Commission for that purpose.

199. Paragraph 11 provides supplementary powers for the Commission. It provides that the Commission has a power to do anything (except borrow money) which is calculated to facilitate, or is incidental or conducive to, the performance of any of its functions, in particular the formation of advisory bodies.

SCHEDULE 2

THE CONSUMER COUNCIL FOR POSTAL SERVICES

200. Schedule 2 sets out a series of detailed provisions regarding the membership and constitution of the Council.

201. Paragraph 1 provides for the membership of the Council. There must be a Chairman appointed by the Secretary of State. The Chairmen of the regional committees for Wales, Scotland and Northern Ireland and any committee for England are members by virtue of their office. The Secretary of State may appoint such other members as he may from time to time determine subject to consulting the Chairman before making any such appointments.

202. Paragraph 2 provides that the regional committees for Wales, Scotland and Northern Ireland and any committee for England shall consist of a Chairman appointed by the Secretary of State after consultation with the Chairman of the Council and other members appointed by the Council. It also makes provisions about the formation of regional committees and the appointment of the Chairmen.

203. Paragraph 3 provides that the Council in consultation with the Secretary of State shall decide the nature of regional committees and make provisions about the procedure for making changes to such committees.

204. Paragraph 4 allows both the Council and any of its committees to establish other committees and that the members may include persons who are not members of the Council or of its committees and makes provisions about members vacating office.

205. Paragraph 5 provides that subject to this schedule the Chairmen and all members of the Council shall hold and vacate office in accordance with the terms of their appointments.

206. Paragraph 6 provides that the Chairmen and all members of the Council may resign by giving notice to the Secretary of State and provides that the Secretary of State may remove any Council member on grounds of incapacity or misbehaviour. It also provides that where a person ceases to be the Chairman of the Wales, Scotland or Northern Ireland regional committees or of any committee for England then he shall cease to be a member of the Council. Previous service in any capacity on the Council does not disqualify someone from being appointed again.

207. Paragraph 7 makes provision for the Council to pay and remunerate its members. It also makes provision for the Secretary of State to authorise the Council to pay compensation where a person ceases to be a member where in his view there are special circumstances.

208. Paragraph 8 provides the Council with a duty to appoint a principal officer, and a power to appoint other staff, on such terms and conditions of service as the Minister for the Civil Service may approve.

209. Paragraph 9 provides for the Council's staff to be eligible for schemes under the Superannuation Act 1972. This allows staff to have pensions analogous to those of civil servants.

210. Paragraph 10 provides that the Council may regulate its own proceedings including its quorum.

211. Paragraph 11 provides for the authentication of the Council's common seal.

212. Paragraph 12 provides for a document executed under the seal of the Council, or signed on its behalf, to be received in evidence.

213. Paragraph 13 sets out the power of the Council to delegate to any member, or member of staff, of the Council or a Committee who is authorised for that purpose.

214. Paragraph 14 provides supplementary powers for the Council. It provides that the Council has power to do anything (except borrow money) which is calculated to facilitate, or which is incidental or conducive to, the performance of any of its functions.

215. Paragraph 15 provides that the Council must perform duties of a financial nature specified in notices from the Secretary of State which have been approved by Treasury.

216. Paragraph 16 requires the Council to prepare annual accounts that give a true and fair view of its financial affairs and for such accounts to be sent to the Secretary of State and laid before each House of Parliament.

217. Paragraph 17 provides that the Secretary of State may pay such amounts in respect of the expenses of the Council as he may determine.

SCHEDULE 3

TRANSFER TO THE POST OFFICE COMPANY: SUPPLEMENTARY PROVISIONS

218. Schedule 3 sets out a series of provisions regarding the vesting of property, rights and liabilities of the Post Office in the Post Office company.

219. Paragraph 1 provides that anything (including any legal proceedings) which is being done by or in relation to the Post Office immediately before the appointed day may be continued to be done by or in relation to the Post Office company after the appointed day. Anything done by or in relation to the Post Office for the purpose of the transfer to the Post Office company will, if it is in force immediately before the appointed day, have effect as if it were done by or in relation to the Post Office company in so far as that is required for it to have continuing effect after the transfer. The transfer to the Post Office company does not affect the validity of anything done by or in relation to the Post Office before the transfer.

220. Any agreement or any document which was made before the appointed day will have effect for the purposes or consequences of the transfer to the Post Office company as if any reference to the Post Office were references to the Post Office company and any references to an employee or other person serving the Post Office in a specified capacity were references to such a person as the Post Office company may appoint or, in default, to the officer who most closely corresponds with the original member or officer of the Post Office.Sub-paragraph (5) contains an order-making power for the Secretary of State to disapply, or apply with modifications, the provisions in subsections (1) to (4) of paragraph 1. The order-making power could be used to deal with an instance where it is inappropriate for a reference to the Post Office in a current document to be construed as a reference to the Post Office company after vesting day. Only sub-paragraphs (1) to (4) of paragraph 1 are subject to any provision made by or under the Act.

221. Paragraph 2 provides for the Post Office company to be liable, as from the appointed day, for the pension arrangements of the Post Office. In particular, paragraph 2(1) imposes the Post Office's previous liabilities under the 1969 Act on the new Post Office company. Paragraph 3 confers similar powers in relation to the new Post Office company to those which currently exist in relation to the Post Office in respect of certain previous employees of the Cable and Wireless company. Paragraph 4 provides that certain moneys in the pension schemes which were provided under the Post Office Act 1969 are to be held by trustees - just as they are currently held by trustees. The Post Office's pension funds are currently held by a corporate trustee company (Post Office Pensions Trustees Ltd), and the Trustee Board operates independently of the Post Office. The effect of paragraph 4(1) is to permit such arrangements to continue. Paragraph 4(2) provides that the Trustees in office immediately before the "appointed day" will remain the Trustees after the transformation, and the trusts themselves will be equally unaffected in substance by the transformation. Paragraph 4(3)defines the boundaries of the trusts which are held within the ambit of these transfer provisions - it is drawn in such a way as to embrace all the current pension schemes.

222. Paragraph 5 ensures that managers of welfare and other funds for persons (and their relatives and dependants) who are or have been engaged in the business of the Post Office have the power to alter these funds to take account of the transfer of the Post Office to the Post Office company. It maintains the rights of persons eligible for assistance under the existing funds and allows persons (and their relatives and dependants) who become engaged in the business of the Post Office company to become eligible.

223. Paragraph 6 provides that no relevant land right of third parties will operate or become exercisable by virtue of the vesting of the rights and liabilities of the Post Office in the Post Office company. "Relevant land right" is defined in sub-paragraph (2). A relevant land right will have effect in the case of vesting of the rights and liabilities of the Post Office in the Post Office company as if the Post Office company were the same person in law as the Post Office and no transfer of land had taken place. Fair compensation will be paid by the Post Office company to any person having a relevant land right but who cannot exercise it because of the provisions in this paragraph. The paragraph makes provision for the appointment of an arbitrator to deal with any dispute over such compensation.

224. Paragraph 7 deals with any other rights or liabilities of a third party which were enforceable against or by the Post Office and which by virtue of the Act have become enforceable against or by the Post Office company, and the value of any property or interest of the third party which is consequently reduced. "Third party" in this paragraph means any other person other than the Post Office and the Post Office company. Fair compensation will be paid by the Post Office company in such circumstances and any dispute as to whether and how much compensation should be payable, and provision is made for the appointment of an arbitrator.

225. Paragraph 8 provides that a person dealing with the Post Office company in respect of land transferred under section 62 of the Act shall not be bound or entitled to enquire whether Treasury consent to any previous dealing with the land was needed or, if it was needed, whether or not it was given. It re-enacts section 62 of the Post Office Act 1969 but modifies it to apply to the Post Office company.

226. The Post Office still owns much of the land purchased with Treasury consent. The proposed section has the effect of allowing third parties to deal solely with the Post Office company in respect of dealings in land. It removes the burden on third parties to enquire whether Treasury consent was given in respect of past dealings in land and also provides protection in the unlikely event that Treasury consent was not given. The provision will remove the risk that dealings in respect of land between the Post Office company and third parties could be prejudiced.

227. Paragraph 9 provides for the transfer of any foreign property, right or liability.

228. Paragraph 10 defines "the transitional period" referred to in this schedule as the period of continued existence of the Post Office after the appointed day.

SCHEDULE 4

TRANSFER TO THE POST OFFICE COMPANY: TAX

229. This Schedule sets out the tax provisions in relation to the transfer of property, rights and liabilities from the Post Office to the Post Office company. The effect of these provisions is to make the transfer tax neutral. They ensure that the Post Office company will not receive any tax advantage as a result of the transfer and equally ensure that the Post Office company does not suffer any disadvantage.

230. The Post Office is currently chargeable to corporation tax, as will the Post Office company. Paragraph 1 enables that, for the purposes of corporation tax, the Post Office company shall be treated as if it were the same person as the Post Office. It will ensure tax neutrality. The Post Office company will avoid charges to corporation tax resulting from the transfer of property, rights and liabilities from the Post Office. It will also allow the Post Office company the same tax reliefs as would have been available to the Post Office.

231. Paragraph 2 covers the treatment of any shares issued under section 63 of the Act. It enables such shares to be treated for the purposes of the Corporation Tax Acts as if they had been issued wholly for consideration of a subscription paid to the Post Office company of an amount equal to the nominal value of the share. Without this provision, shares would be deemed to be issued for no consideration with the consequence the issuing of the shares would be deemed to be a distribution which would attract a tax charge.

232. Paragraph 3 covers the treatment of any securities issued under sections 63 or 74 of the Act. It enables such securities to be treated for the purposes of the Corporation Tax Acts as if they had been issued for consideration of a loan made to the Post Office company of an amount equal to the principal sum payable under the security. If securities were issued for no consideration, interest payments by the company could be considered a distribution and attract a tax charge.

233. Paragraph 4 makes provision for any debt assumed by the Post Office company under Section 74(1) to be treated for the purposes of the Corporation Tax Acts as if it had been assumed wholly in consideration of a loan made to the Post Office company of an amount equal to the principal sum payable under the debt. If the debt were treated as having been assumed for no consideration, interest payments by the company could be considered a distribution and attract a tax charge. It is intended to maintain a position of tax neutrality for the Post Office company during the restructuring of the company's balance sheet.

234. Paragraph 5 ensures that the existence or exercise of the powers of the Secretary of State under section 62 of the Act does not constitute or create arrangements within the meaning of section 410 of the Income and Corporation Taxes Act 1988. Without this amendment, there is the possibility that the Post Office company and its subsidiaries may not be able to obtain group relief from the time that arrangements are in place to transfer the Post Office subsidiaries to the company.

235. Paragraph 6 makes it clear that nothing in Part IV of the Act and nothing done under it shall be regarded as a scheme or an arrangement for the purposes of section 30 of the Taxation of Chargeable Gains Act 1992. Without this provision, section 30 would confer on the Post Office company a tax free benefit as a result of the transfer of property, rights and liabilities from the Post Office which could give rise to an additional tax liability.

236. Paragraph 7 ensures that the Taxation of Chargeable Gains Act 1992 applies to a disposal by the Post Office company of any assets acquired by the Post Office under Part III of the Post Office Act 1969. In such instances, the acquisition or provision of an asset by the Crown will be deemed to be an acquisition or provision by the Post Office company. This provision gives the Post Office company the capital gains base cost for things such as buildings that will be owned by the Post Office at the time of transfer. Without this provision the Post Office company would not be entitled to the base cost.

237. Paragraph 8 enables that, for the purpose of value added tax, the Post Office company shall be treated as if it were the same person as the Post Office. This paragraph has the same effect for value added tax as paragraph 1 has for corporation tax.

238. Paragraph 9 makes it clear that the transfer of property, rights and liabilities under section 62 of the Act will not give rise to any liability to stamp duty.

239. Amendments to the Value Added Tax Act 1994 as set out inSchedule 8 of the Act are also intended to ensure that the transfer of the property, rights and liabilities of the Post Office to the Post Office company is tax neutral.

SCHEDULE 5

ACQUISITION OF LAND

240. Schedule 5 sets out the detailed provisions on the compulsory acquisition of land by a universal service provider. Under Part I, any universal service provider who requires to make a compulsory acquisition of land for the purpose of the provision of a universal postal service will require authorisation from the Secretary of State. As planning law differs within the UK, the Schedule provides separate powers for England and Wales, Scotland and Northern Ireland.

241. Paragraph 1(2) expands the power to make a compulsory purchase of land and rights over land so that it includes the power to acquire a right over land by creating a new right. Unlike the Acquisition of Land Act 1981, the Compulsory Purchase Act 1965 does not contain provision for such new rights and so paragraphs 5 to 13 make the necessary modifications to that Act.

242. Paragraph 2(2), like paragraph 1(2), provides for the acquisition of land by means of the creation of a new right over land. Paragraphs 15 to 28 make provision similar to that in paragraphs 5 to 13 and for the same reason.

243. Part IV of the Schedule contains procedures for the compulsory purchase of land by universal service providers in Northern Ireland. It applies, with modifications, Schedule 6 to the Local Government Act (Northern Ireland) 1972 and Schedule 8 to the Health and Personal Social Services (Northern Ireland) Order 1972. It provides that any compensation due as a consequence of a compulsory purchase is to be assessed in the same way as when land is vested in a district council by virtue of Schedule 6 to the 1972 Act.

SCHEDULE 6

FURTHER PROVISIONS RELATING TO LAND

244. Schedule 6 contains further provisions relating to land.

245. Paragraph 1 gives universal service providers the power to execute street works in relation to the placing of letter boxes and pouch-boxes. Sub-paragraph (3) applies Part III of the New Roads and Street Works Act 1991 and the Street Works (Northern Ireland) Order 1995. Pouch-boxes are secure receptacles from which postmen and women collect additional mail sacks without returning to a Delivery or Sorting Office.

246. Paragraph 2(1) permits a person authorised by a universal service provider to enter and survey land to ascertain whether it is suitable for any purpose in connection with the provision of a universal postal service.

247. Paragraph 2(2) allows the authorised person to search and bore to ascertain the nature of the subsoil of the land.

248. Paragraph 2(3) limits the power in paragraph 2(1) to circumstances where the land is not covered by a building (or does not have planning permission to be covered). Paragraph 2(4) extends the meaning of "building" to include a garden etc. belonging to the building.

249. Paragraph 3(1) and (2) contains the conditions with which the universal service provider must conform to obtain entry to any land.

250. Paragraph 3(3) provides that, if the land is owned by a statutory undertaking, the authority of the appropriate Minister (as defined in paragraph 3(4) to 3(6)) will need to be obtained if the survey of the land would be detrimental to the undertakings' activities.

251. Paragraph 4 makes it an offence to obstruct an authorised person carrying out their work.

252. Paragraph 5(1) provides that the owner of the land may seek compensation from the universal service provider if the authorised person causes damage to the land.

253. Paragraph 5(2) to (4) sets out the procedures for the determination of compensation in England and Wales, Scotland and Northern Ireland.

254. Paragraph 6 applies, for England and Wales, the relevant provisions of Part I of the Compulsory Purchase Act to the acquisition of land by a universal service provider by agreement.

255. Paragraph 7 applies, for Scotland, the relevant provisions of the Town and Country Planning (Scotland) Act 1997 (incorporation of Land Clauses Acts) to the acquisition of land by a universal service provider by agreement.

256. Paragraph 8 applies, for Northern Ireland, the relevant provisions of the Land Clauses Acts to the acquisition of land by a universal service provider by agreement.

257. Paragraph 9 permits the Duchy of Lancaster to sell land owned by the Crown to a universal service provider for use in the provision of a universal postal service.

258. Paragraph 10 has the effect that land acquired by a universal service provider by agreement under paragraphs 6-9 shall be deemed for all purposes to have been acquired for the purposes of the provider's undertaking as a universal service provider.

SCHEDULE 7

DISCLOSURE OF INFORMATION

259. Schedule 7 sets out the basis upon which information obtained under the Act can be disclosed. Information obtained under this Act (except for that obtained under section 62 or section 118) which relates to the affairs of a person or business may only be disclosed if it falls within one of the criteria in this schedule. Paragraph 3(1) allows disclosures to be made for certain purposes which are listed there. One of these purposes (see paragraph 3(1)(b)) is to facilitate the carrying out by a person or body listed in paragraph 3(2) of any function conferred by the Acts and other legislation listed in paragraph 3(3) . The Secretary of State may modify paragraph 3 by Order. There are comparable provisions in the Telecommunications Act 1984. The Act makes it an offence to disclose information in contravention of Schedule 7.

SCHEDULE 8

AMENDMENTS OF ENACTMENTS

260. Schedule 8 amends a number of enactments in consequence of the Act.

SCHEDULE 9

REPEALS AND REVOCATIONS

261. Schedule 9 repeals and revokes a number of enactments in consequence of the Act or which are obsolete or unnecessary.

COMMENCEMENT

262. Some technical provisions of the Act will come into force on Royal Assent. The substantive provisions of the Act other than section 115 will come into force on such a day, or days, as the Secretary of State shall determine. Section 115 will come into force at the end of the period of two months beginning with the day on which the Act received Royal Assent.

HANSARD REFERENCES

263. The following table sets out the dates and Hansard references for each stage of this Act's passage through Parliament.

Stage	Date (all year 2000)	Hansard reference
House of Commons
Introduction	27 January	Column 593
Second Reading	15 February	Columns 802 - 880
Committee	22 and 29 February; 2, 7, 9, 14, 16 and 21 March.	House of Commons Official Report - Standing Committee B
Report and Third Reading	18 April	Columns 834 - 952
House of Lords
Introduction	19 April	Column 707
Second Reading	2 May	Columns 931 -945; 956 -986
Committee	8 and 15 June	Columns 1242 - 1307; 1323 - 1362; 1762 - 1828
Report	29 June	Columns 1073 - 1146
Third Reading	11 July	Columns 167 - 196
House of Commons
Consideration of Lords Amendments	27 July	Columns 1361 - 1381
House of Lords
Royal Assent	28 July	Column 766
House of Commons
Royal Assent	28 July	Column 1457