The Mail Show 2005: Top executives debate key UK regulatory issues
The first day of this year’s Mail Show brought all the leading mail executives together to debate the future of the domestic mail market. An audience of over 400 senior industry figures heard Postcomm Chairman Nigel Stapleton call for Royal Mail to concentrate on “efficiency gains” rather than hoping for a government handout to alleviate its GBP4bn pensions deficit. Speaking to the Financial Times, he described RM as “a pension fund with a mail business attached rather than the other way round”. Royal Mail’s Adam Crozier responded that it would descend into a “spiral of decline” if forced to cut costs to the level required by Postcomm. Competitiveness Minister Barry Gardiner said that he would wait until price controls were finalised before intervening and that, if the price settlement is correct, RM should be able to meet its obligations. In another session, Triangle presented the results of Monday’s Customer Forum of the UK’s top mail users. Among their conclusions was that there had been little change in the product alternatives available from the operators in 2005, and that Royal Mail is fighting back using weapons such as Pricing in Proportion to muddy the waters.
