The Postal Services Act 2000 (Consequential Modifications No. 1) Order 2001

Explanatory Note

(This note is not part of the Order)

This Order makes consequential and supplementary provisions in connection with the commencement of the provisions of the Postal Services Act 2000.

Article 1 provides for citation, commencement and extent. Article 1(3) provides that the repeal of Part I of Schedule 4 to the National Audit Act 1983 will come into force on the day that the Post Office is dissolved under section 75 of the Postal Services Act 2000. Article 1(4) provides that the Order does not extend to the Isle of Man and the Channel Islands. Article 1(5) provides that subject to Article 1(4), the modifications in the Order have the same extent as the Act modified.

Article 2 provides a similar gloss in relation to references in legislation to “second class post” as exists in Schedule 8 of the Postal Services Act for “first class post”. References to “second class post” in legislation are deemed to be references to a postal service that seeks to deliver documents and other things no later than three working days after posting. The articles apply to future enactments unless the context otherwise requires. It also applies to related enactments which include enactments which apply to or operate in consequence of an enactment to which Article 2 applies.

Article 3 gives effect to Schedule 1 (amendments) and Schedule 2 (repeals).

Article 4 makes various transitional and saving provisions. Article 4(1) provides that the repeal of sections 16 (vesting in the Post Office of property rights and liabilities generally) and 18 (vesting in the Post Office of rights and liabilities under certain contracts conferring on the Crown incidental rights as to patents etc.) of the Post Office Act 1969 does not affect the rights and liabilities vested under those sections. Article 4(2) makes transitional provision for the rights and liabilities vested under section 18 of the 1969 Act and vests such rights and liabilities in the Post Office company. Article 4(3) provides that the repeal of section 133 does not affect any changes made or having effect in accordance with section 133 relating to trust deeds, rules, regulations or other instruments. Article 4(4) provides that the repeal in section 157(5) of the Inheritance Tax Act 1984 does not affect the determining of the value of an estate by reference to a point in time before 26th March 2001. Articles 4(5) to (7) provide that the exemption from Building Regulations currently enjoyed by the Post Office will continue to apply after 26th March 2001 in relation to any building work commenced before 26th March 2001 or in relation to any building for which a contract for substantive building work had been entered into before 26th March 2001 and for which, the contract stipulates that the building work will commence no later than six months after 26th March 2001. Article 4(8) provides that the modifications of the Regulation of Investigatory Powers Act 2000 in this Order do not affect the validity of any authorisation issued by the Post Office under sections 28 and 29 of the Regulation of Investigatory Powers Act before 26th March 2001. Functions in connection with such an authorisation after 26th March 2001 will be deemed to be functions of the corresponding universal service provider. Article 4(9) provides that the revocation of paragraph 23 of the Schedule to the Local Authorities (Capital Finance) (Approved Investments) Regulations 1990 shall not have effect in relation to any investments made by a local authority to the Post Office prior to 26th March 2001. Article 4(10) provides that any transitory, transitional or saving provision relating to an enactment modified by the Postal Services Act, which is made by a Commencement and Transitional Order under section 129 of the Postal Services Act 2000, shall apply, so far as relevant, to any modification in this Order which relates to such an enactment. Article 4(11) provides that no repeal of an enactment in the Order shall apply so far as that enactment is necessary for the purposes of a transfer effected by virtue of sections 4 and 10 of the British Telecommunications Act 1981 or section 60 of the Telecommunications Act 1984. Article 4(12) provides that any transitional or saving provision operates without prejudice to section 16 of the Interpretation Act 1978.

Article 5 makes supplementary provision. It applies the definition of Post Office company in section 62(8) of the Postal Services Act 2000 to sections 111 to 114 and 117 of that Act.

Schedule 1 makes various consequential amendments to legislative references to, inter alia, Post Office, Post Office Act 1953, Post Office Act 1969, Postmaster General and to provisions relating to statutory undertakers and statutory undertakings. Such references are not caught by the glosses in Schedule 8 to the Postal Services Act 2000.

Paragraphs 1, 2, 4, 8(2), 9(2)(b), 9(3), 33,34,37,39(3), 43(3), 50,60,62,64,65,67,68, 70(a), (c) and (d), 72, 79, 92(a) and (b), 93, 94, 104, 105, 110, 118, 125, 126 and 137 to 141 of Schedule 1 make consequential amendments by replacing references in legislative provisions to “Post Office” or “post office” and replacing them with “postal operator” within the meaning of the Postal Services Act 2000. These amendments do not restrict which postal operator can provide the postal service. However, if there is a reference to a particular postal operator, who for example, has received a document, the amendment is to the “postal operator concerned”.

Paragraph 6 of Schedule 1 amends the definition of postal packet in the Revenue Act 1898 which relies on the definition in the Post Office Protection Act 1884 and amends it to the Postal Services Act 2000.

Paragraph 7 of Schedule 1 amends the Law of Property Act 1925 by replacing references to “through the post-office” with “postal operator” where the reference in legislation refers to the postal operator and not the building. The definition of “post office” in section 125(1) of the Postal Services Act 2000 refers to the place from which postal services are provided not the operator.

Paragraphs 10, 13, 18, 20, 24, 26, 27, 28, 30(a), 31(a), 32, 35, 36, 38, 40, 42, 45 to 49, 53, 54, 57 to 59, 61, 69, 73 to 75, 77, 80, 84, 85, 87 to 90, 95 to 97, 99,102, 107, 109, 112, 117, 119, 121, 123(3)(c), 129, 135, 136 and 142 to 144 of Schedule 1 make consequential amendments by replacing references in legislative provisions to “Post Office” or “Postmaster General” with references to a universal service provider, within the meaning of the Postal Services Act 2000, in connection with the provision of a universal postal service, within the meaning of that Act. This is usually in legislation where the Post Office is a statutory undertaker and its undertaking is a statutory undertaking. This restricts the application of the legislation to the person or persons nominated to be the universal service provider and only insofar as they are carrying out activities in connection with the provision of the universal postal service.

Paragraph 14 of Schedule 1 amends the Civil Defence Act 1939 and makes it clear that a universal service provider is a public utility undertaker and his undertaking a public utility undertaking for the purposes of that Act.

Paragraph 15 of Schedule 1 inserts into the definition of “statutory undertaker” in the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 a universal service provider in connection with the provision of a universal postal service.

Paragraph 16 of Schedule 1 excludes a universal service provider and his undertaking from the definitions of “statutory undertaker” and “statutory undertaking” in the Opencast Coal Act 1958. Paragraph 61 makes similar provision for the Building Act 1984.

Paragraph 23 of Schedule 1 amends section 40(2) of the Forestry Act 1967 and inserts a new paragraph (e) which provides that land held or used by a universal service provider in connection with the provision of a universal postal service is not subject to compulsory purchase.

Paragraph 40 of Schedule 1 amends the Welsh Development Agency Act 1975. Sub-paragraph (3) clarifies that the undertaking of a universal service provider insofar as it relates to the provision of a universal postal service shall be his statutory undertaking. Similar provision is made in paragraphs 42, 45, 48, 49, 52, 54, 56, 80, 84, 96, 112 and 116.

Paragraph 49 of Schedule 1 amends the Highways Act 1980. Sub-paragraph (8) inserts a new section 254(6A) into that Act. It provides that for the purposes of section 254(1) of that Act (compulsory acquisition for certain purposes of rights in land belonging to local authorities etc.), it is only land held or used for any purpose in connection with the provision of the universal postal service and not land which has been acquired by the universal service provider for the purposes of its undertaking which is subject to section 254.

Paragraph 57 of Schedule 1 amends the Representation of the People Act 1983. It replaces the functions of the Post Office and the Head and Deputy Postmasters in relation to elections with the designated officials of a universal service provider. Similar provision is made in paragraph 129 for the National Assembly for Wales (Representation of the People) Order 1999 and in paragraph 131 for the Scottish Parliament (Elections etc.) Order 1999.

Paragraph 58 of Schedule 1 makes similar amendments to paragraph 57 in relation to the Parliamentary Writs Order 1983.

Paragraph 75 of Schedule 1 amends section 76 of the Housing Act 1988. It inserts a new subsection (6A) which prevents the Secretary of State from vesting land of a universal service provider in a housing action trust. Similar provision is made in paragraph 98, the Leasehold Reform, Housing and Urban Development Act 1993, in relation to the Urban Regeneration Agency and in paragraph 120, the Regional Development Agencies Act 1998, in relation to regional development agencies.

Paragraphs 80 to 83 of Schedule 1 amend the Town and Country Planning Act 1990. The definition of statutory undertaker is changed from the Post Office to a universal service provider. New subsections (2D) and (2E) are inserted into section 263 (definition of operational land) which define operational land for a universal service provider as land used by a universal service provider, or an associated company, in connection with the provision of a universal postal service or land in which either hold an interest in connection with the provision of a universal postal service. No equivalent subsection is inserted for determination of operational land, as was included by the Transport Act 2000, as section 265 already deals with the point. Paragraphs 112 to 116 make similar provision for Scotland.

Paragraphs 3, 11, 12, 44 and 63 of Schedule 1 make minor consequential amendments to legislative provisions relating to the authority of the Post Office to provide banking services. Such references to the Post Office are being repealed in Schedule 2 to the Order and various minor consequential amendments arise as a result.

Paragraphs 22, 39(2), 43(2), 68(3), 86, 93(3)(d), 94(3)(d), 111 and 124 of Schedule 1 make consequential amendments to references in legislation to “postal packet”. The old definition was in section 87(1) of the Post Office Act 1953. The definition is now in section 125(1) of the Postal Services Act 2000 and amendments have been made to that effect.

Paragraphs 19, 21, 30, 31, 46, 47, 60, 68, 70, 78, 79, 92, 123 and 135 of Schedule 1 make various consequential amendments to other legislative references to the Post Office Act 1953 and the Post Office Act 1969 and update them to the relevant provisions of the Postal Services Act 2000.

Paragraphs 71, 122, and 132 of Schedule 1 amend the European Parliamentary Elections (Northern Ireland) Regulations 1986, the New Northern Ireland Assembly (Elections) Order 1998 and the European Parliamentary Elections Regulations 1999 respectively. These contained references to section 72 of the Post Office Act 1969 (remuneration of the Post Office for services rendered in relation to parliamentary elections). This section has been re-enacted as section 200A of the Representation of the People Act 1983 by virtue of the Postal Services Act 2000. The amendments in these paragraphs reflect this.

Paragraphs 5, 25, 26(3), 29, 101, 103 and 108 of Schedule 1 make various consequential amendments from Post Office or Postmaster General to the Post Office company (within the meaning of Part IV of the Postal Services Act 2000). These amendments are made where the Postal Services Act 2000 envisages that certain things, for example, issuance of postal and money orders, are done by the Post Office company or where specific amendment has already been made in the Postal Service Act 2000, for example, to the Value Added Tax Act 1994.

Paragraphs 9(2)(a), 17 and 130 of Schedule 1 make amendments to legislation where the original wording was “sent through the post office”. These are amended to “by post”.

Paragraphs 1, 55, 127 and 128 of Schedule 1 amend references to “Post Office” to “post office” or “public post office”. This is to clarify that the reference is to the place where postal services are carried out and not to the postal operator.

Paragraph 76 of Schedule 1 amends the Social Fund Cold Weather Payments (General) Regulations 1988, It modifies the definition of “postcode district” so it is construed in accordance with the Postcode Address File.

Paragraph 66 of Schedule 1 amends the Postal Packets (Customs and Excise) Regulations 1986. The definitions have been changed to reflect the new legislation and regulations 7, 8 and 9 of the Regulations have been redrafted to update them for the new legislation.

Paragraphs 100 and 106 of Schedule 1 amend the Public Services Contracts Regulations 1993 and the Public Supply Contracts Regulations 1995 respectively. Postal business of the Post Office is currently subject to the procurement regime by the virtue of the Annex 1 of Schedule 3 to the 1993 Regulations and Annex 1 of Schedule 1 to the 1995 Regulations. The amendments mean that postal services in relation to letters carried out by the Post Office company or a relevant subsidiary are still subject to procurement rules.

Schedule 2 makes various repeals and revocations in consequence of the Postal Services Act 2000.