Edinburgh pioneers end of postal service monopoly

CONSIGNIA’S monopoly on postal services is likely to be initially
broken in Edinburgh Groundbreaking changes could take place within months if PostComm, the
mail regulator, accepts a licence application from Hays, the support services
group. Company insiders have revealed the proposed service would be “in direct
competition” with Consignia – formerly the Post Office – but on a limited
scale that would not affect the universal service. The Edinburgh application comes against the background of regular
wildcat strikes in the city by postal workers, which may make Consignia even
more vulnerable to competition. The potential shake-up also raises the possibility of national UK
strikes from postal unions angry at the introduction of what they see as
“creeping privatisation”. Surrey-based Hays, which deals with IT, personnel and payroll contracts
with big business, has also made applications for interim licences in
Manchester and London. It plans to tender for the collection, sorting and delivery of mail in
selected city centre postal areas with principally business addresses. Hays already has the infrastructure in place to support a private
service as it already operates a range of specialist services such as document
exchange between law firms, travel companies and insurers. Hays has also tendered to offer limited postal services to specified
business customers nationally. Any mail sent outside Hays’ designated
operating areas would be automatically passed on to Consignia. PostComms chief executive Martin Stanley said: “It is not just a game;
it is not something we are dreaming about. “They [Consignia] are quite likely to have a serious competitor within
a matter of months. At the moment it looks likely we can get some competition
in without damaging the universal service.”THE SCOTSMAN, 26th June 2001