Threat of postage increase blamed on British rival

HONGKONG Post has threatened a postage increase after its United Kingdom counterpart allegedly exploited a loophole to set up a delivery company in the SAR, causing it to lose $9 million in the first three months of the year. Incoming mail from the UK plummeted 36 per cent in the period compared with that of last year, Hongkong Post said. It attributed the drop to a new practice – established in October – under which mail from the UK is brought in by the company and selectively delivered to major business areas and densely populated areas. Other items are sent through the cheap local postage system. Under the “terminal dues system”, Hongkong Post charges the overseas post office $72 for a two-kilogram parcel sent through the regular channels. But in this case, Consignia – the renamed British post office group – brings it in and its company distributes it through the domestic postage system for only $28. Hongkong Post external affairs director Suresh Mansukhani, in criticising the move, said the issue had been taken up with Consignia but quoted it as saying it was a business decision. The company could not be reached for comment yesterday. The terminal dues system is endorsed by the Universal Postal Union.
Hongkong Post warned that mail charges would increase substantially
if other overseas post offices established similar delivery
networks. A review of charges is due to be completed soon. Mr Mansukhani
warned that postage charges needed to rise from $1.30
to $1.65 for Hongkong Post to break even. He said Hongkong Post had
received numerous complaints of delays in mail from Britain and
blamed it on the new practice. [email protected]
Copyright 2001 Hong Kong iMail. Source : World Reporter (Trademark)HONG
KONG IMAIL, 19th May 2001