BCC: Postal competition necessary for businesses (UK)

Businesses deserve an ‘efficient and cost effective’ postal service and any review of the market must take this into account, it has been claimed.

The British Chambers of Commerce (BCC) made the comments in response to business secretary John Hutton’s announcement of a ‘comprehensive review’ of developments in the postal services market since its liberalisation two years ago.

The review will look at trends in future market developments and the likely impact on Royal Mail, other carriers and consumers.

Hutton said: “We believe that opening the market has brought considerable benefits for users of postal services but there can be no doubt that the market has evolved, with new technologies such as email and text messaging having a huge effect on the way we communicate.”

Responding to news of the review, Natalie Evans, head of policy at the BCC said:

“The business community deserves and depends upon an efficient and cost effective postal service.

“Frustratingly, the recent strike action at Royal Mail had a significant impact on businesses across the country, costing small and medium sized businesses an estimated GBP 2.5m in delayed post every day there was disruption.

Evans said competition in the industry was necessary to ensure business mail got delivered.

She added: “If Royal Mail cannot ensure final mile delivery, then choice must be allowed to flourish within the industry.”