Menu
18/02/2005
Royal Mail to lose postal delivery monopoly in 2006
The Royal Mail is set to lose its monopoly on the UK postal market, as regulator Postcomm have announced plans to bring full liberalisation of the market forward.
Postcomm announced plans to bring the date for full market opening forward from April 1, 2007 to January 1, 2006, following extensive stakeholder consultations.
The regulator believes that a competitive market would encourage innovation and benefit postal users. Postcomm said that it expected niche operators to enter the market, serving smaller local or sector-specific markets. The regulator also stressed that, although the results of liberalisation had been "mixed" in other countries, there was evidence to suggest that customers had benefited from innovation, improved service standards, falling real prices and greater efficiency.
Royal Mail, which currently controls 99% of the market, said that it welcomed the competition.
Consumer watchdog, Postwatch, also welcomed Postcomm's decision, saying that competition was the best way to ensure customers receive service and choice at the best possible price. Peter Carr, Chairman of Postwatch, said: "This is welcome confirmation of a policy, which will ultimately benefit all users of mail services."
Postwatch believes full competition will re-enforce, not undermine, the delivery of the universal service and also will be good for the Royal Mail, because it will "maintain the pressure to deliver quality of service to customers, improve efficiency and drive innovation."
However, the Communication Workers Union (CWU) criticised the decision, calling it a "competition at all costs" ethos that would put the Post Office at "a serious competitive disadvantage to its European rivals." CWU General Secretary, Billy Hayes, said: " The Dutch and German post offices in particular must be rubbing their hands in glee at this ill-advised and regrettable decision. At a stroke they are being allowed the opportunity to compete head on with Royal Mail while still enjoying the benefit of strong protection in their home markets.
Mr Hayes added: "The sad thing is that British consumers are the ones who could easily end up suffering as a result of this macho posturing by Postcomm."
(KMcA/SP)
Postcomm announced plans to bring the date for full market opening forward from April 1, 2007 to January 1, 2006, following extensive stakeholder consultations.
The regulator believes that a competitive market would encourage innovation and benefit postal users. Postcomm said that it expected niche operators to enter the market, serving smaller local or sector-specific markets. The regulator also stressed that, although the results of liberalisation had been "mixed" in other countries, there was evidence to suggest that customers had benefited from innovation, improved service standards, falling real prices and greater efficiency.
Royal Mail, which currently controls 99% of the market, said that it welcomed the competition.
Consumer watchdog, Postwatch, also welcomed Postcomm's decision, saying that competition was the best way to ensure customers receive service and choice at the best possible price. Peter Carr, Chairman of Postwatch, said: "This is welcome confirmation of a policy, which will ultimately benefit all users of mail services."
Postwatch believes full competition will re-enforce, not undermine, the delivery of the universal service and also will be good for the Royal Mail, because it will "maintain the pressure to deliver quality of service to customers, improve efficiency and drive innovation."
However, the Communication Workers Union (CWU) criticised the decision, calling it a "competition at all costs" ethos that would put the Post Office at "a serious competitive disadvantage to its European rivals." CWU General Secretary, Billy Hayes, said: " The Dutch and German post offices in particular must be rubbing their hands in glee at this ill-advised and regrettable decision. At a stroke they are being allowed the opportunity to compete head on with Royal Mail while still enjoying the benefit of strong protection in their home markets.
Mr Hayes added: "The sad thing is that British consumers are the ones who could easily end up suffering as a result of this macho posturing by Postcomm."
(KMcA/SP)
Related UK National News Stories
Click here for the latest headlines.
01 June 2005
Royal Mail criticises regulator’s proposals
Royal Mail has criticised proposals drawn up by industry regulator Postcomm, claiming they would lead to the “inexorable decline” of the postal operator. Postcomm has recommended price caps on the cost of stamps, meaning that first-class stamps could rise to no more than 34p and second-class stamps to no more than 23p by 2010.
Royal Mail criticises regulator’s proposals
Royal Mail has criticised proposals drawn up by industry regulator Postcomm, claiming they would lead to the “inexorable decline” of the postal operator. Postcomm has recommended price caps on the cost of stamps, meaning that first-class stamps could rise to no more than 34p and second-class stamps to no more than 23p by 2010.
30 September 2003
Royal Mail fined £7.5m for 'service failings'
The Royal Mail has been fined £7.5 million for "failings in its service to customers", the post watchdog has said today. The fine relates to two of Royal Mail’s services used by business customers: First Class Post Paid Impression (PPI) and First Class Response Services. The target for both services is delivery of 92.5% of post the next day.
Royal Mail fined £7.5m for 'service failings'
The Royal Mail has been fined £7.5 million for "failings in its service to customers", the post watchdog has said today. The fine relates to two of Royal Mail’s services used by business customers: First Class Post Paid Impression (PPI) and First Class Response Services. The target for both services is delivery of 92.5% of post the next day.
18 October 2004
Royal Mail urged to redouble efforts to stop mass mail scams
Royal Mail has been told to "tighten" its procedures in an effort to try to stop fraudsters using the postal system to get to consumers. The Trading Standards Institute (TSI) made the calls after statistics revealed that 67% of complaints about scams aimed at consumers relate to items delivered through the post.
Royal Mail urged to redouble efforts to stop mass mail scams
Royal Mail has been told to "tighten" its procedures in an effort to try to stop fraudsters using the postal system to get to consumers. The Trading Standards Institute (TSI) made the calls after statistics revealed that 67% of complaints about scams aimed at consumers relate to items delivered through the post.
25 January 2011
Met Police Seize Scam Mail Aimed At UK Victims
In the first operation of its kind, officers from the Metropolitan Police Service's Economic and Specialist Crime Unit (Operation Sterling) took possession of a bulk delivery of scam mail intended for vulnerable victims across the UK and searched and closed five virtual offices used by the scammers.
Met Police Seize Scam Mail Aimed At UK Victims
In the first operation of its kind, officers from the Metropolitan Police Service's Economic and Specialist Crime Unit (Operation Sterling) took possession of a bulk delivery of scam mail intended for vulnerable victims across the UK and searched and closed five virtual offices used by the scammers.
07 October 2003
Royal Mail late letters compensation scheme unveiled
Royal Mail has introduced a new compensation system for customers whose deliveries arrive late. The new arrangements could see customers awarded £3.36 worth of postage in a book of First Class stamps – or 12 times the cost of First Class postage for First Class letters that arrive more than four working days after posting.
Royal Mail late letters compensation scheme unveiled
Royal Mail has introduced a new compensation system for customers whose deliveries arrive late. The new arrangements could see customers awarded £3.36 worth of postage in a book of First Class stamps – or 12 times the cost of First Class postage for First Class letters that arrive more than four working days after posting.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
