Regulator backs business on postal rates

BRITAIN’S postal services regulator, Nigel Stapleton, yesterday pledged to support the interests of small businesses and communities throughout rural Scotland by upholding the principle of an all-UK standard or “universal” postal prices, for non-domestic users.

Talking to The Scotsman yesterday during a three-day “stakeholder consultation” north of the Border, Stapleton also expressed strong support for the plight of Scotland’s rural post offices, which face the prospect of the withdrawal of the GBP150 million annual subsidy the government gives to Royal Mail to support this socially vital network.

“It’s a big issue for rural Scotland, but also for many deprived areas of the cities,” Stapleton said. “The fact that functions like pension, social security and driving licenses have been taken away from them has resulted in a 40 per cent drop in the revenue of businesses that already have annual incomes as low as GBP10,000 a year.

“Taking that revenue stream away from them is a classic case of non-joined up thinking by the government, as it will require far more in terms of future subsidy to alleviate the damage to rural economies.”

The UK postal market was deregulated on 1 January and its first fully privatised door-to-door post service to rival the Royal Mail is to be trialled in Scotland by the Dutch firm TNT. Glasgow and Edinburgh have been chosen, along with Manchester, for an experiment which will give customers the choice of having collection, sorting and delivery carried out entirely in private hands. Edinburgh has the worst first-class delivery performance in Scotland, while Glasgow is third-worst.

Stapleton praised progress of postal deregulation, which he said was the most advanced in Europe outside of Sweden. “Greater access for competitors like TNT has already enhanced the customer experience.

“There have been more postal products launched in the last two years than in the previous five. It has been a win-win for mailers and for customers.
“But we are only about a quarter of the way down the track and we are not complacent. We want to see more alternative offerings available to small business. This is particularly pertinent in Scotland because the future of these rural areas is no longer agriculture, it is small business.”
Tim Steward, chairman of the East of Scotland FSB, praised Stapleton for his opposition to “zoned” postal rates for business that would disadvantage remote businesses, saying that maintaining a universal rate would help rural businesses to remain competitive.