The remedy for postal distorder – comment
DAILY POST OUR VIEW
CONSIGNIA – or the Post Office, as it is still known by most people, despite wasting thousands of pounds on a rebranding exercise – is facing serious difficulties.
Losing more than pounds 1m a day, it is so badly managed and its staff so demotivated that it has little hope of defending its market share against increased competition.
The results of a survey by the trade union Amicus, which found that 60pc of Post Office senior managers are suffering from work-related stress, are probably not surprising considering the turmoil which the organisation inevitably faces.
There is little point, however, in recrimination or seeking to apportion blame over how a once-profitable business got into such a mess. The important question is:
Where does it go from here?
Amicus argues that problems within Consignia mean that the Government should be in no hurry to implement its plans to widen competition for postal services.
Meanwhile, the Communication Workers’ Union, which represents rank-and-file Post Office staff, is threatening national strike action over plans to cut thousands of jobs.
Rather than caving in to the alarmist scenarios being put forward by Consignia management and unions alike, the Government should stick to its plans and press ahead more quickly than ever.
Realistically, the rigorous application of market forces is the only way to ensure that the public ends up with the kind of postal service it wants and needs. Increased competition will force Consignia to downsize, certainly, but this is a vital pre-requisite if it is to become more efficient.
Competition will also enable a much more efficient allocation of resources in terms of the public money which is spent to subsidise the universal service in areas where this is not commercially viable.
Consignia is already making changes aimed at reducing costs, with an experiment in several areas, including St Helens, on Merseyside, which will see a formal end to the second delivery, with earlier deliveries for major users of the service and later deliveries for domestic customers.
Apart from those who work from home, few have much to lose from this as they probably leave for their daily commute well before the postman arrives. These changes may not be popular, but they are necessary and they will not be the last before postal services in this country go through an essential and long overdue restructuring.
Copyright: The Liverpool Daily Post & Echo Ltd
