Postwatch seeks comments on new Royal Mail targets

Postwatch is seeking opinions on what Royal Mail's performance targets should be from April 2006 and, to kick off the three-month consultation period, it has published a document setting out its views to encourage public comment and to stimulate debate.

The consumer watchdog for postal services believes meeting Royal Mail's current 16 current licence targets — including that at least 93percent of 1st class letters should arrive next day — should be the priority, but looking ahead the watchdog says customer service levels should be more clearly defined.

Postwatch proposes that additional targets should be added to Royal Mail's licence including:

The redirection service;

The time by which mail should be delivered (noon or within 1 hour of the locally set time);

Collections (not earlier than the time shown and tabs to show when the last collection has happened);

Daily Deliveries: (99.9percent of walks to be completed every day);

Loss: (no more than 1 in 5,000 items to be lost within Royal Mail);

Damage: (no more than 1 in 10,000 items to be damaged within Royal Mail);

Post Office queues: (95percent of customers should queue for no more than five minutes).

Postwatch chief executive Gregor McGregor said that until there is true competition in postal services, customers must rely on an effective regulatory regime to protect their interests.

"In our consultation document we set out what we believe acceptable service levels should be. We look forward to receiving a wide range of views," McGregor said.

Postwatch Press Release 8.10.04
POSTWATCH CONSULTS ON NEW PERFORMANCE TARGETS FOR ROYAL MAIL

Postwatch, the consumer watchdog for postal services, will over the next
three months be seeking views on what Royal Mail's performance targets
should be from April 2006. In a consultation document, published this week
by e-mail, Postwatch sets out its current thinking for comment and to
stimulate debate.

The first task is for Royal Mail to improve performance by hitting its
existing targets. But looking ahead, Postwatch sees the need to define more
clearly what level of service customers can expect.

Postwatch proposes that; –

· Targets should be added to the licence for;

o The redirection service.
o The time by which mail should be delivered (noon or within 1 hour of the
locally set time).
o Collections (not earlier than the time shown and tabs to show when the
last collection has happened).
o Daily Deliveries: (99.9% of walks to be completed every day).
o Loss: (no more than 1 in 5,000 items to be lost within Royal Mail).
o Damage: (no more than 1 in 10,000 items to be damaged within Royal Mail).
o Post Office Queues: (95% of customers should queue for no more than 5
minutes).

· All 16 current licence targets should be retained. Including that at least
93 per cent of 1st class letters should arrive next day.

Gregor McGregor, Chief Executive of Postwatch on the launch of the document
said: "Until effective competition in postal services becomes a reality,
customers have to rely on an effective regulatory regime to protect their
interests.

"A vital part of this protection is to make sure services are underpinned by
a clear statement of what performance customers can expect. In our
consultation document we set out what we believe acceptable service levels
should be. We look forward to receiving a wide range of views."

NOTES TO EDITORS

1. Prices and levels of service are two sides of the same coin. Customers
may be willing to pay more for better services; equally they expect to pay
less when, as at present, service standards are not being met.

2. Many postal prices are controlled by the Regulator, Postcomm and new
controls are planned for April 2006. Postwatch's proposals based on this
consultation will create a new balance between prices and services to ensure
customers get a better deal.

3. The consultation document can be viewed and downloaded at
www.postwatch.co.uk/policy/info.asp

4. Hard copies of Postwatch's Consultation Document "The Future of Quality
of Service Targets" are available free of charge by calling 08456 013 265.

MORE INFORMATION:

Contact Andy Frewin on 020 7 259 1223 or 079 00263 004, or

Daryl Barrett on 020 7259 1239 or 079 00263 020.

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