Consignia rival's reform alert
ONE OF Consignia’s main rivals has urged a slowdown in postal liberalisation, saying that Consignia is too weak for full competition before the rest of Europe and that competitors will not be big enough to pick up the pieces when it struggles.
TPG, which operates the Dutch post office and which has held merger talks with Consignia, has asked the postal regulator to delay the opening of the full market to competition and to change the way liberalisation is phased in.
The move adds to pressure on Postcomm, the regulator, to dilute competition plans in its final pronouncement, due by the end of the month. Postcomm, which is independent, already faces political pressure to alter its proposals, which suggested opening Consignia’s bulk business post to rivals in two stages and having full competition by 2006. The EU will not demand full competition until 2009 at the earliest.
Peter Bakker, chief executive of TPG, said: “Consignia is not ready for full competition. It is too weak financially. And if the second biggest mail market in Europe goes ahead of the other large markets, then Consignia will be vulnerable to losing its business while it is not able to go elsewhere.”
Mr Bakker, whose company wants to become the second biggest postal provider in the UK after Consignia, said it would harm all players if Consignia were left stricken by the introduction of competition.
TPG’s comments leave Graham Corbett, head of Postcomm, isolated on his liberalisation plan. Consignia, unions, and, it is believed, ministers oppose the proposals’ timetable and structure. It is expected that there will be some weakening of the plans when they are announced this month, but it is not clear whether Mr Corbett’s desire to race ahead of the European timetable will be scrapped. Europe has said only that it will consider full competition by 2009, and that will depend on a review in 2006.
Consignia said: “The proposals and timetable as they stand threaten the universal service (same cost for any distance).”
