UK Businesses meet post chief to discuss rural pricing zone proposal
Chairman of the Postal Services Commission Nigel Stapleton met local businesses to discuss the Royal Mail’s controversial proposals for zonal pricing during a visit to Exeter.
The proposals, which have been submitted by the Royal Mail to Postcomm, are still being considered by the regulator.
The move would see an increase in the cost of business post to rural areas, potentially having a large effect on businesses in the area.
Domestic post would not be affected and the universal price of a first class stamp to post a letter anywhere in the country would remain.
But business post may incur different zonal charges.
Mr Stapleton said Postcomm would be ready to make a tentative decision in about a month’s time and the new pricing structure could be in place by 2008.
He said: “The input we have been getting from Devon is great as it has helped to inform our decision.”
He added: “We don’t have closed minds and we want to understand how the people in rural areas view the implications.”
The Post Office has also been rocked after 73 per cent of the Communications Workers Union voted to strike.
Mr Stapleton said: “Clearly, there are issues about the Royal Mail that the CWU has concerns about.
“To express those concerns through strike action has to be their decision and their decision alone.
“But we are concerned about the potential damage to the mail market that any disruption is going to have.”
Mr Stapleton said that bigger companies could encourage e-billing, or electronic billing, with their customers if a prolonged strike were to occur.
The Government has recently made an announcement that the number of post offices around the country will be cut from 14,500 to 12,000.
Postmasters will receive compensation and affected areas are likely to get a mobile service in its place, as Government guidelines stipulate that 95 per cent of the population must live within five kilometres of a post office.
Mr Stapleton also pointed out that once these closures had been implemented, no more would be closed and GBP 150m had been given by the Government to help keep many rural and urban post offices open.
Of the transfer of 70 crown post offices to WH Smith, Mr Stapleton said: “We have already seen some branches transfered.
“People have now been able to use the post office through much longer opening hours.”
Post Office Counters staff are due to hold another postal strike tomorrow, from 6am until noon.
