Business leaders issue warning about UK postal competition
Birmingham’s business leaders are demanding protection for small businesses following the announcement that UK postal services will be privatised earlier than expected.
The industry regulator Postcomm decided to open postal services to full competition from next January, 15 months earlier than planned. Debbie Walsh, head of policy at Birmingham Chamber of Commerce and Industry, said she believed small to medium-sized enterprises would be the first to suffer.
She said: ‘Around 80 per cent of the daily postbag of 83 million letters and packets is sent by companies and we expect this lucrative end of the market to become the battleground between Royal Mail and private delivery companies.
‘This should be good news for business if prices are driven down and services improved. But we fear that smaller companies who do not have so much bargaining power as the major firms, may suffer as a result.’
She said the change would not necessarily improve service, adding: ‘Even in this age of electronic communications, many businesses still rely heavily on prompt and regular mail deliveries.
‘The reduction from two to one daily postal delivery caused many problems for businesses and any further disruption could result in less efficient businesses.
‘We urge Postcomm to safeguard services in such a way that privatisation ensures equal access to postal services for all businesses and also forces Royal Mail to continue to raise its game and deliver more letters on time.
‘Royal Mail services have improved in recent months and we would like that to continue and hope that they are not distracted by the extra competition.’
Nigel Stapleton, chairman of Postcomm, said they expected a more innovative and efficient postal industry to develop, with market forces eventually replacing regulation.
Midland MP Michael Fabricant (Con Lichfield), shadow Industry and Technology Minister, said: ‘In the short term, it is unlikely that any rival delivery service will be able to set up as comprehensive a network as the Royal Mail.
‘Whatever now happens, the principle of a universal delivery obligation throughout the United Kingdom must be maintained. There can be no no-go areas for the Royal Mail.’
