Regulator defends move to liberalise the post
Postcomm, the independent regulator, has denied it was setting out to destroy Consignia and the universal postal service with its proposals to liberalise the postal market.
Martin Stanley, Postcomm chief executive, told MPs yesterday that Consignia should remain a dominant force once the market was open and would not be crippled by “overzealous regulators”.
“Competition will keep it on its toes and keep it with a 90 per cent market share. Hopefully, we will have a postal service we can be proud of,” Mr Stanley told the Commons public accounts committee.
Postcomm last month revealed proposals to liberalise the postal market within four years, ruling that the lucrative bulk business mail market could be open to the private sector within eight weeks.
Leading overseas operators, such as Deutsche Post, and TPG, the Dutch mail group, are expected to apply for licences to collect and sort bulk business mail, along with UK groups Hays and Business Post.
Mr Stanley and Graham Corbett, Postcomm chairman, also denied claims that they were taking the liberalisation process too far, too quickly, letting companies “cherry pick” the best parts of Consignia’s business and reducing its ability to deliver a universal service, six days a week, at a common tariff.
Page 2; Edition London Ed3; Section NATIONAL NEWS
Copyright 2002: Financial Times Group
