Improve post services minister tells Consignia
The Government today warned Consignia it had “no alternative but to improve” postal services.
Trade and Industry Minister of State Douglas Alexander told the Commons it was determined to see improvements in the company and was taking “active steps” to bring them about.
Consignia came under fire from MPs at question time with accusations of “persistent failure” to deliver quality services to millions of homes and businesses.
Nigel Waterson, for Tories, said Consignia was presiding over a “deteriorating postal service” with “persistent failures”.
Vincent Cable, for Liberal Democrats, said the Government was being “unrealistic” to expect universal services while the company was facing “mounting losses”.
“What kind of guarantee can you give us that when the post office is forced to default on its universal service obligation because of financial difficulties, these crucial obligations will continue to be provided?” he demanded.
Mr Alexander said it was the job of regulator, Postcom, to ensure universal service, adding: “Of course Consignia has to do more in terms of providing the quality service that people are looking for.
“As a shareholder the Government is determined to see the improvement of the company in the months and years to come.”
He said growing competition from Europe had left Consignia “simply no alternative … but to improve its performance”.
Consignia recorded a #281 million loss in the first six months of 2001.
Total mail volume grew by 3% last year, against a projected 6% and mobile phone text messaging is believed to be taking up to 1% of business away from Consignia.
The decision not to increase the cost of first and second class stamps has also cost Consignia an estimated #96 million.
