Government review – Postwatch initial response (UK)

Postwatch has submitted its answers to the first 19 questions posed by the independent review panel appointed by the Government.

The review panel’s terms of reference are to:

• assess the impacts to date of liberalization of the UK postal services market, including on the Royal Mail, alternative carriers and consumers;

• explore trends in future market development and the likely impact of these on Royal Mail, alternative carriers and consumers; and

• consider how to maintain the universal service obligation in the light of trends and market developments identified.

In her covering letter Millie Banerjee CBE, Chair of Postwatch, made the following points:

• The review is timely and welcome.

• Royal Mail has a dominant influence on the future of the UK’s postal industry. Postwatch is encouraged that Royal Mail acknowledges the need both for a far greater customer focus and for a fundamental change in its internal culture. Postwatch believes these to be huge tasks that will require little less than a revolution in Royal Mail’s thinking and approach.

• The needs and interests of its customers must be factored in at every point of Royal Mail’s transformation plan.

• Declining mail volumes are a major challenge but must not be used an excuse for declining customer service and lack of investment. Instead Royal Mail should be reinvigorating the mail market to make it an attractive medium for advertising and fulfilment delivery.

• A financially healthy, customer focused, efficient Royal Mail is required if the UK’s postal industry is to thrive. Postcomm, as economic regulator, must ensure that its regime provides real incentives for this to happen.

Postwatch has submitted its answers to the first 19 questions posed by the independent review panel appointed by the Government.

The review panel’s terms of reference are to:

• assess the impacts to date of liberalization of the UK postal services market, including on the Royal Mail, alternative carriers and consumers;

• explore trends in future market development and the likely impact of these on Royal Mail, alternative carriers and consumers; and

• consider how to maintain the universal service obligation in the light of trends and market developments identified.

The review panel consists of three members Richard Hooper (Chair), Deidre Hutton and Ian Smith.

In her covering letter Millie Banerjee CBE, Chair of Postwatch, made the following points:

• The review is timely and welcome.

• Royal Mail has a dominant influence on the future of the UK’s postal industry. Postwatch is encouraged that Royal Mail acknowledges the need both for a far greater customer focus and for a fundamental change in its internal culture. Postwatch believes these to be huge tasks that will require little less than a revolution in Royal Mail’s thinking and approach.

• The needs and interests of its customers must be factored in at every point of Royal Mail’s transformation plan.

• Declining mail volumes are a major challenge but must not be used an excuse for declining customer service and lack of investment. Instead Royal Mail should be reinvigorating the mail market to make it an attractive medium for advertising and fulfilment delivery.

• A financially healthy, customer focused, efficient Royal Mail is required if the UK’s postal industry is to thrive. Postcomm, as economic regulator, must ensure that its regime provides real incentives for this to happen.