Royal Mail price rises will “jeopardise future of mail”

Royal Mail proposals to increase the price of business mail by up to 19 per cent will have a devastating effect on the future of mail and deliver a further blow to UK business as they claw their way back from recession, according to the executive director of the Direct Marketing Association (DMA), Chris Combemale.

The volume and revenue generated by business post (accounting for 87 per cent of all mail) underpins the provision of mail delivery services for every UK household, otherwise known as the ‘Universal Service’. The DMA has grave concerns that the proposed price rise will jeopardise this service and the future of the industry, creating uncertainty which will prompt businesses to revert to other forms of communication or significantly reduce their mailing volumes. It also believes that for those businesses where mail is the only option, such a hike in prices is unacceptable in the current operating climate.

 

Chris Combemale, executive director of the DMA, states:

“Modernisation of Royal Mail is indeed essential. However, I believe that their plans to raise funds at the expense of businesses are counter-productive.  Experience has shown that once a company has migrated to other media, they don’t come back. This loss in volume and revenue would be a massive blow to both the Universal Service and the mail industry as a whole.

 

“The DMA is calling on Royal Mail to reconsider their proposal and would welcome the opportunity to discuss its concerns.”