Consignia response to Postcomm consultation on market liberalisation

Allan Leighton, Chairman of Consignia said: “Markets should be opened up at a pace and in a way that enables customers to have more choice, whilst at the same time gives us a realistic chance to compete effectively and maintain a universal service at a uniform price.

“Our current financial position is already unsustainable. We are losing more than #1 million a day and need to reduce our cost base by at least #1.2 billion by 2003. We must do this to pay for the customer service improvements that are imperative and to better reward our people who are key to the future success of the company.

“Liberalisation and competition will increase. We recognise the benefits competition brings to customers in all markets and we are certainly not afraid of it. The balance to be struck is not to undermine those potential benefits by introducing full-blown competition too quickly and with no constraints while effectively tying our hands behind our back.

“The Postcomm proposal to open up 30% of the market in just a few weeks time threatens the universal service. Competitors can now cherry-pick the profitable parts of our business, which substantially pay for the “one-price-anywhere-in-the-country” promise of universal service.

“For Consignia, the regulator’s approach represents death by a thousand cuts.

“We want to improve our customer service levels, become a great place to work and to be profitable. To do this we need to be competitive. Regulation should support a competitive environment, not stifle it.”