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Blair says limited funds available for post office subsidy

Rural Post Offices would continue to receive a social subsidy beyond 2008, Tony Blair assured MPs yesterday.

He said the network had a “social purpose” but told the Commons that support would be limited because of the funds available.

“There is a role for public subsidy. Over the past few years we have put about pounds 2 billion into the Post Office network precisely because we recognise that it has a social as well as a commercial purpose. We are looking at how we can sustain that purpose.”

Mr Blair was challenged at Prime Minister’s Questions by Sir Robert Smith, Liberal Democrat MP for West Aberdeenshire and Kincardine, over a critical report earlier this week from trade and industry select committee. It warned that the benefits of the Post Office branch network could be “lost forever”.

Sir Robert urged the Prime Minister to accept the recommendation that the social network subsidy would have to carry on beyond 2008.

While promising that some subsidy would continue, Mr Blair said there was “a limited amount of funds available”.

There should be research into what other services the network could provide to give it a “different and more modern rationale”.

Earlier, John Prescott, who chairs the Cabinet committee overseeing post offices, also came under pressure at Deputy Prime Minister’s Questions. He faced challenges over the decision to phase out the Post Office Card Account and complaints over people no longer being able to renew their car tax and television licence at post offices.

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Comeback for catalogues?

Far from being dethroned by the internet, the big book has thrived on the back of an online presence and given UK printers a major boost.

Not only are many retail firms adding catalogues as a fundamental part of their strategies, but the catalogue is also serving to complement online sales. Even websites such as Ebay have produced print editions.

Good news for catalogue printers is that while those that historically have relied on the medium to get their message across continue to do so – such as mail order companies like Avon, Empire, and Grattons – there is a growing band of retailers willing to embrace the power of the printed page and move from a store- or internet-only presence to a bulging product catalogue. Tesco, Woolworths and John Lewis, among many others, have all gone down this route. Online sales are flourishing, and that’s down to the traditional, bulky catalogue being replaced by clever, creative marketing: catalogues are now smaller, smarter, and bursting with fresh products. However, that stability and growth may be compromised by the increasing trend of production going overseas. Big retailers such as Tesco and Woolworths have already placed major slices of their catalogue work abroad, and the question arises as to whether production is increasingly likely to go there in the future.

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Chinese government to let postal system run independently – report

China is progressing with plans to convert its postal system into a 10 bln usd standalone entity, a change that would spin off one of the last businesses still run directly by the government, the Wall Street Journal reported, citing a government spokesperson.

The State Council, the government’s highest administrative body, has approved of the plan which was finalized in August. The plan calls for the post office’s business operations, which use the name China Post, to be injected into a new, state-owned company, the newspaper reported.

The State Postal Bureau will continue to exist but is being changed into a purely regulatory organization, the report added.

That shift could address some of the criticisms China has faced over its handling of the market for delivering documents and parcels. The huge and fast-growing market has attracted many of the world’s big express-delivery companies, including FedEx Corp, United Parcel Service and Deutsche Post AG unit DHL.

The foreign companies that compete with China Post have long complained that the government agency also had regulatory power over them, the newspaper said.

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Shanghai Airlines to build global cargo network

Shanghai Airlines Cargo International Co., Ltd., the cargo venture of Shanghai Airlines Co., Ltd., started to make a profit of more than CNY 2 million in September after coming into production in July.

The venture, jointly set up by China’s first commercial airline and Sino Prime Ltd. and Juniper Estate BV, two subsidiaries of Taiwan’s EVA Airways Corp., is predicted to see its profit grow sharply in October.

Shanghai Airlines Cargo International Co. got one MD-11 all-cargo plane and two Boeing 757 freighters from Shanghai Airlines, who holds a 55% stake in the venture. In late July, it introduced one Boeing 747 freighter.

It has captured an 11% share in the air cargo market in Shanghai, the country’s economic center, only three months after its inception. Within the year, it will also buy one MD-11 freighter, making it own five large-sized all-cargo aircraft merely half a year after its establishment.

Shanghai Airlines Cargo International Co. has launched routes to Los Angeles, Frankfort, Singapore, Bangkok, Osaka, Bombay, Macao, Hong Kong, and so forth, laying solid foundation for it to make a profit.

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UK Mail Award winners announced

The winners of the first UK Mail Awards, designed to recognise and celebrate best practice across the entire UK mail logistics chain, were announced at a gala dinner in London last night. The ‘Domestic Marketing Campaign’ award went to WDMP, ReaD Group won the award for ‘Database Management’, the ‘Innovation’ award was given to Express Dairies, the ‘Technology’ award was won by Optecon and the award for ‘Mail Centre of the Year’ was presented to the Northern Ireland postcode region.

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Good Data Means More Choice – Haigh Consultancy Services Ltd.

This afternoon I would like to offer you an overview of the benefits of good data and good data maintenance.

In postal terms, how good data can mean more choice of service.

In more general terms, how keeping good data makes good business sense: saving you money, making your mailings more effective and improving your company’s image.

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Jim Fitzpatrick Speech: The Mail Show

Introduction

I’m delighted to be here to set out the Government’s position on what we consider to be the key issues facing a fully competitive postal market: both here in the UK, and in Europe.

My thanks to Triangle, and to the host sponsors of the Mail Show: DHL Global Mail, Royal Mail, TNT Mail, and Oce for giving us this important opportunity to consider the forces which will shape the postal sector as we look forward over the next few years.

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