Postal Services Act 2011

Postal Services Act 2011

2011 CHAPTER 5

Commentary on Sections

Part 4: Special Administration

Financial support for companies in administration

Section 79: Grants and Loans

342. This section sets out the conditions on which the Secretary of State can make grants or loans to a universal services provider in postal administration.

343. Subsection (2) enables the Secretary of State, with the consent of the Treasury, to make grants or loans to the universal service provider of amounts that the Secretary of State considers to be appropriate for achieving the objective of the postal administration.

344. Subsection (3) provides in general terms that the grants or loans may be made in whatever manner, and on whatever terms, the Secretary of State considers appropriate. Subsections (4) and (5) specify some of the terms which may be included, namely terms requiring:

a)

the whole or a part of the grants to be repaid to the Secretary of State if there is a contravention of the other terms on which they are made;

b)

the loans to be repaid at such times and by such methods as the Secretary of State may, with the consent of the Treasury, from time to time direct; and

c)

interest to be paid on the loans at such rates and at such times as the Secretary of State may, with the consent of the Treasury, from time to time direct.