Structure of the Act
17.The Act is divided into five Parts:
18.Part 1 of the Act deals with the restructuring of the Royal Mail group of companies. In particular, provision is made to lift the restrictions on the sale of shares in Royal Mail. Provision is made for the establishment of an employee share scheme prior to any sale. The restrictions on ownership of Post Office Ltd are modified to provide for it to remain in 100% Government ownership except for a possible move to a mutual ownership structure in future.
19.Part 2 of the Act deals with the Royal Mail pensions scheme. This Part enables historic pension liabilities to be transferred to the Government.
20.Part 3 of the Act is concerned with the regulation of the postal services sector. This Part makes various provisions for the regulatory framework including, but not limited to: giving OFCOM the functions of the regulator for the postal services sector and abolishing Postcomm; making maintenance of the universal service, including its financial sustainability, the primary duty for the regulator in relation to postal services; replacing the current licensing regime for the provision of postal services with a general authorisation scheme; and providing for the regulator to impose conditions aimed at ensuring accounting separation and cost transparency.
21.Part 4 of the Act contains provisions for a special administration regime. The purpose of this is to ensure that the objective of the administrator is to secure the continued provision of the universal postal service in the event that a privately-owned Royal Mail (or other provider of the universal postal service) is at risk of entering insolvency proceedings. This follows precedents in the energy and water industries.
22.Part 5 of the Act contains general provisions relating to orders or regulations made by the Secretary of State, commencement and other general matters.