POL00362922
POL00362922
dts
Barry Gardiner MP
PARLIAMENTARY UNDER-SECRETARY
OF STATE FOR COMPETITIVENESS
Z8 March 2006
Mr Alan Cook CBE
Managing Director
Post Office Limited
80 - 86 Old Street
London
EC1V 9NN
Ane Alon
ENTRUSTMENT OF POST OFFICE LIMITED WITH THE DELIVERY OF
CERTAIN PUBLIC SERVICES
The UK Government is required by paragraph 11 of the Community Framework for
State Aid in the form of public service compensation (2005/C 297/04) to entrust Post
Office Limited with services of general economic interest through an overarching
ministerial instruction. This letter contains this instruction.
Post Office Limited is required to provide a network of Post Office branches to make
available the services of general economic interest detailed in Annex A. Post Office
Limited is entrusted with the delivery of these services of general economic interest
using its network in accordance with the contractual terms which apply to each service.
Specifically, the services listed in Annex A are provided under commercial contracts
entered into by Post Office Limited and the Government Department or body
purchasing the service. In the case of universal postal services, the services made
available at Post Office branches are ones which the universal service provider (Royal
Mail Group plc) is required to provide under the terms of its postal service licence.
The entrusiment of the delivery of the services set out in this letter to Post Office Ltd
does not replace or change in any way contracts and other agreements under which the
terms of the provision of the individual services are made. As stated above, the purpose
of this letter is to meet our obligation to entrust these services of general economic
Department of Trade and Industry
LG52
1 Victoria Street
London SW1H OET
dti.correspondence@dti.gsi.gov.uk
POL00362922
POL00362922
Continuation 2
interest to Post Office Limited in accordance with the letter from the European
Commission of 23 February 2006 giving clearance to State Aid notification N166/2005
(the “clearance letter”).
We confirm that Post Office Limited’s public service obligation extends to maintaining
the rural network beyond its optimum commercial size until 31 March 2008. The basis
of Government funding for the non-commercial rural network up to 2008 is set out in
the European Commission’s clearance letter.
The Community Framework for State Aid in the form of public service compensation
(2005/C 297/04) paragraphs 20-23 further requires that the UK Government ensures no
over-compensation. We will continue to arrange for independent audit of the social
network payment (including the accounting principles and figures) at the end of the
financial year in which monies have been paid. This will cover the net loss in rural non-
commercial branches calculated on a fully attributed costs and benefits basis under
general accounting procedures. In accordance with the Community Framework, any
overpayment will be required to be repaid to the State, subject to the provisions of the
Community Framework.
oT Sp ~
BARRY, ‘GARDINER
a
RESTRICTED-POLICY
POL00362922
POL00362922
Annex A
SCHEDULE OF SERVICES OF GENERAL ECONOMIC INTEREST
PROVIDED
BY POST OFFICE LTD AT POST OFFICE BRANCHES
Processing social
Cash payment of state
Department for Work and
identity and licensing
scheme applications
application forms for
customers to complete
and return to UKPS
Checking and
authentication of
passport applications and
supporting
documentation
Providing vehicle licence
application forms for
customers to complete
and return to DVLA, and.
budget cash savings
schemes for licence fees.
I benefit and tax credit I benefits including state I Pensions, Social Security
payments to the pension, child benefits Agency - Northern Ireland,
public. and tax credits and the Inland Revenue and
encashment of benefit financial institutions
cheques.
Cash payment of benefits I Home Office
and the issuing of
vouchers to eligible
asylum seekers.
Cash payment of health I Department of Health.
benefits and the
provision of form EHIC
benefits
2. I Processing of national I Providing passport The United Kingdom
I
I
Passport Service (““UKPS”)
The United Kingdom
Passport Service.
The Driver and Vehicle
Licensing Agency
(“DVLA”)
POL00362922
POL00362922
RESTRICTED-POLICY
Receiving payment for
vehicle licences and
Photocard Licences, and
checking Photocard
application forms and
supporting
documentation.
Issuing of television
licences and the
provision of related
The Driver and Vehicle
Licensing Agency.
British Broadcasting
Corporation.
public utility services.
electricity, gas,
telecommunications and
water bills. Payment
options include pre-
payment and other
budgeting schemes (e.g.
savings stamps).
Provision of facilities for
cash payment of local
authority council tax
bills and social housing
rents.
budget cash payment
schemes.
3 I Universal cash Provision of facilities for I Financial Institutions
payment facilities for I cash payment of individual utility service
providers, and billing
service providers
Financial Institutions,
Local Authorities, and
housing associations.
4 I Universal postal
service.
Provision of postal
services which the
universal service
provider (Royal Mail
Group plc) is required to
provide under its postal
services licence
Royal Mail Group plc.
RESTRICTED-POLICY
Universal access to
basic cash and
banking facilities and
Government savings
instruments, especially
for rural customers
and those on social
benefits.
Provision of basic
community banking
facilities (cashing of
cheques, cash deposit,
Post Office card account
and automated cash
withdrawals and
deposits) and cash
transmission facilities
(postal orders), in
particular to socially
excluded customers.
This includes deposits
and withdrawals of cash
by businesses local to
Post Office branches.
Access to Government
savings instruments
including Premium
Bonds, Investment
Accounts, Children’s
Bonds and National
Savings certificates.
POL00362922
POL00362922
Financial Institutions
including the Government-
owned National Savings &
Investments, the
Department for Work and
Pensions, the Social
Security Agency - Northern
Ireland, and the Inland
Revenue.
National Savings and
Investments.