Insufficient competition to generate better post services

LETTERS TO THE EDITOR: Insufficient competition to generate better post services
Financial Times; Jan 29, 2002
By MICHAEL MACCLANCY

From Mr Michael MacClancy

Sir, Your coverage of the National Audit Office report on Postcomm and postal services (“Watchdog warns on Post Office competition”, January 24) was wide of the mark. There is nothing new in identifying a risk that the universal postal service might suffer if Consignia were subject to competition and this was not the most important conclusion to be drawn from the NAO’s report. The report stated explicitly that evidence from overseas showed that “universal service is maintained under liberalised conditions”. More important were the NAO conclusions that there “may be insufficient competition to generate an improved service to most customers” and that, in the event that this happened, the regulatory regime might fail to provide sufficient incentives to Consignia to improve its efficiency and service. If anything, the NAO report suggests that more competition and the eventual privatisation of Consignia are necessary to ensure the sort of postal service the country needs. Our monitoring reinforces this view.

Michael MacClancy, Senior Consultant, Triangle Management Services, Buckinghamshire HP9 2LH

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