PROFILE – PETER CARR (Postwatch): Carr draws up final battle plan

Postwatch chairman Peter Carr has used his experience in the retail world to force Royal Mail to put the customer first. As his reign comes to a close, Jessica Phillips asks who else will defend user needs so fearlessly

For most men on the verge of retirement, there is an inevitable 'winding down' period as the prospect of 'pipe and slippers' moves ever closer. For Postwatch chairman Peter Carr, however, this could not be further from the truth, as he draws up the battle plan for his final eight months in the role.

And few would envy his diary, as he prepares for the small matter of overseeing millions of pounds in compensation for direct marketers, a 'fairer' timescale for the introduction of pricing in proportion (PIP), realistic costing for Royal Mail's competitors, and price controls for the industry. And this workload does not even take into account the 35,000 annual consumer complaints to be analysed.

Carr's self-confessed principles have not won him many friends at Royal Mail, especially after he declared it was better to use second-class stamps over the Christmas period. Since the postal operator could only guarantee its three-day service, rather than the next-day delivery promised by the more expensive option, Carr felt it was his duty to notify the public. When threatened with legal action for loss of revenue, he stood firm. Nothing came of the postal operator's claims, and it was back to business as usual in the new year.

Carr attests: "I've never done anything in government before, and I'm pretty sure I'll never do it again – I don't think they'd have me." And, while he admits he lacks assertion when it comes to family decisions – he is under strict orders from his wife not to buy another boat until he has acquired a family home in the countryside – he adds: "I can't tolerate people who don't have the courage of their own convictions."

After retiring from a 35-year, successful career in retail – in which he was managing director of the Debenhams Group, before moving to department store Galerias Preciados in Madrid, eventually merging it with the El Corte Ingles Group – Carr could have put his feet up, and relaxed on his boat in the Mediterranean.

But when the call came from the Department of Trade & Industry in 1999, explaining that consumers needed him, he was ready for action, and eagerly took up the six-year challenge as Postwatch chairman. He will step down in December, with the hunt for a successor set to start after the General Election (see News, page 3).

"Postwatch is the first thing I've ever set up from scratch," Carr explains. "The previous consumer council was pretty impotent. In its place, we created a nine-region network of 120 people, giving us access to both business and domestic customers at ground level. We are the eyes and ears of the industry, representing customer views to Royal Mail, Postcomm and the Government."

He is described as a "fighter" by Peter Phillips, managing director of database marketing specialist Hexfax and executive committee member of the DMA (UK). He says: "The marketing industry will miss Peter when he retires. It is impossible for small agencies like us to take on Royal Mail."

Carr attacked the postal giant – and industry regulator Postcomm – after the timescale for direct marketers to adapt to PIP before implementation was effectively reduced from 12 to six months (PM last week). This week, Postwatch has vowed to scrutinise Postcomm's statement that it is "minded to accept" Royal Mail's size-based pricing proposals (see News, page 1).

And the argument concerning the GBP80m of compensation owed to bulk mail customers, which make up 85 per cent of Royal Mail's client base, is one that he is determined to win. So far, GBP40m has been paid out, but Postwatch believes that customers have been short-changed. As Carr comments: "The scheme is unfair. Its rules were not defined clearly, and customers have paid for a service that has not been performed. They must be compensated."

Carr's retail background puts him in a unique position when it comes to understanding the postal system. Coming from a world where the customer is always right, he says Royal Mail's monopolistic attitude came as something of a culture shock.

To Royal Mail, he must seem like a growling rottweiler ready to pounce on poor posties. But Carr actually believes the postal operator is doing a good job. He is pleased that Royal Mail is being transformed to the advantage of the customer, developing new products and preparing for a competitive market: "It has recovered from a GBP1bn loss, and will probably make close to GBP5m in profit this year. The management team has to be congratulated."

With limited powers, Carr's bark is often worse than his bite, and it is with Postcomm, not postal companies, that he has the biggest grievance. "For the good work to continue, this industry needs strong regulation, and that is the component that worries me. A regulator must provide clear and firm leadership."

Postcomm's handling of the deregulation process will be closely monitored, but Carr fears high-entry prices will mean low margins, reducing the flow of competitors into the market.

Whatever happens next, though, Martin O'Neill MP, chairman of the trade and industry select committee, believes Carr can retire satisfied, having successfully walked the fine line between constructive and negative criticism.

Carr will probably be sailing the seas when the market opens up, hoping that if injustice occurs, Postwatch will always help. But, one thing is certain, he'll be a hard act to follow.

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