CWU rages over regulator's plans
POSTAL unions and Post Office management warned yesterday that industry regulator Postcomm is about to plunge the service into “crisis” with a raft of “restrictive and damaging” proposals.
The regulator intends to increase stamp prices by 1p in an attempt to lead the Post Office out of its financial crisis, but linked to this are price and performance proposals that experts say could fatally damage the service.
The price of a first-class stamp has only increased from 26p to 27p in the last six years and, three years ago, second-class stamps were reduced from 20p to 19p.
The 1p increase will bring in an extra £170 million a year, but stamp prices would then be frozen until March 2006.
Postcomm also proposes that customers can claim £3 compensation if their post is late, which could increase by £1 a day to a maximum of £14.
Communication Workers Union general secretary Billy Hayes warned that the proposals would push the post office into crisis.
“Postcomm’s latest reckless proposals will take money out of the industry which was earmarked to improve the public service, provide better conditions for public servants and guarantee the universal service, ” he said.
Mr Hayes condmened Postcomm for “irresponsibility.”
The union was particularly incensed that the announcement was delayed until the end of the Labour Party conference.
The CWU had argued at conference that regulation had to be fundamentally re-examined. It put the case that social responsibilities should take precedence over the drive to “invent new competitors.”
The postal regulator has become increasingly desperate in recent months, introducing hare-brained schemes to open up the postal “market” to competition.
“Inventing targets, taking money out of the business and introducing underpriced niche markets is reckless folly, ” said Mr Hayes.
“The regulator is working against the interests of a popular public service. It is time it is reined in before it destroys the postal service completely.”
For once, Royal Mail chairman Allan Leighton appeared to agree with the CWU.
He pointed out that the proposals would force the organisation to borrow up to £460 million.
“That would be an impossible burden and would fatally damage our chances of recovery, ” said Mr Leighton.
“Postcomm’s plans will destroy will destroy the ‘one price goes anywhere’ universal service, which only Royal Mail provides.
“Incredibly, this is the very thing that Postcomm is charged to protect above anything else. Postcomm is acting recklessly with the interests of the customers.”
Unless Postcomm “loosened it grip” over the Post Office, Mr Leighton warned that he would be forced to refer the proposals to the competition commission.
