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Postal Services Act 2000

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.

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