Parcels firms steer clear of cheap mail

Parcels companies including Nightspeed and Securicor Omega Express say they will not be applying to the postal regulator for a licence to deliver mail.

Their comments came as Consignia (formerly the Post Office) became the first postal operator to be licensed by postal regulator PostComm as it lost its monopoly for delivering letters under £1.

Graham Corbett, chairman of PostComm, says: “Licensing Consignia is the first step in our task to set a framework for a healthy and competitive postal services sector across the UK which will bring choice, innovation and improved standards to all customers.”

Under the licence Consignia must freeze prices for two years, improve standards of service and allow potential competitors fair access to parts of the postal network.

Consignia plans to cut almost 5,000 jobs from its 200,000 strong workforce in a bid to turn last year’s £264m net loss into a profit of £300m within three years. A spokeswoman says the losses will come from “natural wastage across the company”.

Motor Transport. 29 March 2001
Copyright REED BUSINESS INFORMATION Ltd. 2001