Second Reading of the bill, and debate, introduced by Secretary of State for Trade and Industry, Stephen Byers.

It will give the Post Office the scope to modernise and run a fully commercial business in the 21st century.

It will achieve that by converting it from a statutory corporation to a public limited company, with ownership remaining with the Crown.

The measure will promote competition by establishing a regulator, which will reduce the part of the market that is reserved largely as a monopoly for the Post Office.

The reserved area will be reduced and opened to competitors to the extent that the universal service obligation will continue to be fulfilled.