German Post boss says UK is 'a mess'

The head of Germany’s postal giant, Deutsche Post, has attacked Royal Mail and Postcomm, the industry regulator, for stalling on the opening up of the UK network.

Klaus Zumwinkel, chairman and chief executive of the German logistics giant, said: “We want to bring another choice to customers here … We have a licence to do that but the pricing regime and all the stuff between Royal Mail and the regulator – it’s a mess.”

The Royal Mail and Postcomm are locked in a bitter price row over the charges the postal group can demand from competitors using its network. Royal Mail says it will be driven out of business if the current pricing proposal, which is as low as 11Ap for a first-class letter, is adopted. A spokesman said Allan Leighton, the chairman, would not hesitate to take the regulator to the European courts, which could take another two years.

The war of words between Royal Mail and the regulator has led to growing frustration among rivals, including TPG, the quoted Dutch giant, that want to break into the market.

Zumwinkel said: “The Treaty of Rome says Europe is a common economic unit and nobody should hinder business from one country when they want to go into another.

In Germany we are always a little bit faster in the mail field – we are slower in other fields… But at the end of the day there has to be free and fair competition.”

Zumwinkel’s comments have angered Royal Mail. Its spokesman said: “If we went to Germany and tried to transpose the access prices that Postcomm is talking about, we would not get anywhere. The British market has opened up far more rapidly than anywhere else in Europe.”

The access charges are subject to a three-month consultation and then Postcomm will take a further three months to consider the findings.