Federation of Small Businesses fears over two-tier postal system

THE Federation of Small Businesses in the North West last night warned that Postcomm’s proposals to remove Consignia’s monopoly on the UK’s lucrative business mail service could create a twotier postal service which favours big business.

While FSB members in the North West have given a cautious welcome to Consignia’s apparent U-turn over plans to scrap early morning deliveries to residential addresses, the Federation is still concerned that proposals to outsource business mail deliveries to private companies may lead to differing levels of service throughout the UK.

The Federation – which represents more than 17,000 members in Merseyside, Cheshire, Lancashire, Cumbria and Manchester – has warned that the proposals could have a devastating affect on the

3.7 million small business in the UK which make up 99.5pc of all businesses and employ 52pc of all non-Government employees.

Paul Henly, policy development officer in the North West, explained: “Even before the announcement that the business mail market would be opened up to private competition we had concerns that plans to scrap early morning deliveries to residential addresses would mean that businesses operating from home offices would have to wait until 3pm to receive mail.

“Consignia has agreed to consult on this issue but has warned that the price of keeping early morning deliveries will be further job cuts or more expensive postage.

“However, even if that proposal is shelved, we still have the prospect of private companies, including operators from Germany and Holland, delivering UK business mail.

“Our fears are that this could create a two-tier system where business mail is delivered quickly and efficiently to large companies by private operators while small businesses – many run from home –could have to wait all day for their post, depending on whether they operate from an urban or rural base.

“It wasn’t long ago that we were being told that working from home was the future for UK businesses – what we don’t want is a carved up postal service which penalises small businesses operating in this way.

“All of the uncertainty over the future of Consignia and the UK postal service is worrying for small businesses. Business mail deliveries may prove to be profitable for the private companies who come in with a promise of increased efficiency, but our postal service – once admired as the best in the world – could be heading the same way as our rail network.”
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