Postwatch contests legal appeal against UK Royal Mail
Postwatch is gearing up for another legal battle against Royal Mail, after vowing to fight the operator’s appeal against the High Court judgment which last year found it guilty of breaching its own compensation scheme.
The watchdog claims Royal Mail knows it is set to lose again, but wants to keep the GBP40m it owes disgruntled bulk mailers in the bank in order for it to gain interest. The appeal process will not reach court for several months.
Postwatch brought the original judicial review against industry regulator Postcomm when Royal Mail withheld around GBP40m-worth of compensation from companies, after failing all 15 of its minimum service targets in 2003 and 2004. Bulk mail customers should have received compensation totalling GBP80m automatically, but Royal Mail used late invoice payments as a reason to withhold 50 per cent (PM January 6). Judge Justice Sullivan ruled that Royal Mail should pay its customers the GBP40m owed.
A Postwatch spokesman explains: “As far as we’re concerned, this appeal is a delaying tactic. We’ve already won this case once, and we’re very confident we will win it again.”
The case represented the first time a watchdog has been successful in a judicial review against an industry regulator.
In a separate move, Postcomm has announced the appointment of Richard Moriarty to Postcomm commissioner. Moriarty, who was recently promoted to deputy chief executive of Postcomm, has been appointed for two years from the beginning of May.
Postcomm chairman Nigel Stapleton comments: “Richard’s appointment will strengthen the Commission as we enter the transition to a new regulatory agenda, following agreement on Royal Mail’s price control for 2006-10.”
