CWU attacks licence for privateer. Regulator encourages destruction of universal mail service

CWU attacks licence for privateer. Regulator encourages destruction of universal mail service
From MORNING STAR, September 18th, 2001

By by IAN MORRISON
POSTAL workers’ union CWU condemned industry regulator PostComm’s decision
yesterday to license privateer Hays to deliver business mail. CWU national officer Pat O’Hara warned: “They are not just allowing but
encouraging a commercial firm to cream off the profitable business.” Hays was given a year-long licence to deliver business documents before 8am in
parts of London, Edinburgh and Manchester. Mr O’Hara warned: “PostComm’s actions will be felt across the country. “They are setting out on a path that will lead to a poorer postal service for
ordinary customers, both in terms of income and service. “The postal regulator has insisted that the British taxpayer must effectively
subsidise the profit greed of huge commercial companies, ” Mr O’Hara pointed
out. “It has taken upon itself the mission of destroying the British postal service.
The CWU and the British public will not allow this to happen without a fight. “Someone needs to stand up for the universal service at a standard affordable
tariff.” Mr O’Hara pledged to raise the issue with the government “as a matter of
urgency.” He noted that legislation passed last year “enshrined the universal service in
law. “The government cannot now stand by and watch the regulator it set up
deliberately wreck the intentions of that legislation, ” Mr O’Hara insisted. The licences were the first to be issued to a private company by PostComm,
which was set up earlier this year with the aim of promoting competition. Consignia voiced concern at the impact on its ability to continue providing a
universal service. Consignia managing director Stuart Sweetman pointed out: “Hays can cream-skim
the market by picking and choosing its customers.” The regulator is also to consult on issuing a licence to a firm to deliver mail
for local authorities, if the postal service is disrupted by industrial
action. Deya is likely to be given permission to provide a nation-wide service for
councils to step in and deliver mail such as housing-benefit payments. But Mr O’Hara pointed out: “Royal Mail and ourselves are making every effort
to improve our industrial relations and, only last week, extended our
moratorium on official industrial action.”
PAGE: 4
SECTION: NewsMORNING STAR, 18th September 2001

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