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UK Homes receive 15 billion items of junk mail a year

Every year UK households are bombarded by a staggering 15 billion pieces of junk mail, equal to 626 unsolicited letters per British household, but the consequences are more than just simple irritation on the part of the recipient.

An estimated140,000 householders fall victim to identity fraud every year and many people are putting themselves at risk by not shredding or destroying junk mail according to new research by CPP. 80 per cent of the population admit to throwing their junk mail away without even taking it out of the envelope. All an opportunistic thief needs to cash in on our identities is a name and address.

Over a lifetime the average person will throw 49,000 letters in the bin. A spokesman from CPP said: “The results from this survey are terrifying – people don’t realise that by dropping 49,000 letters in the bin, they are effectively giving fraudsters 49,000 opportunities to steal their identity.”

The statistics reveal we are most at risk when moving house. 16 per cent of people fail to tell people when they move, with a quarter of us getting so wrapped up in the trials and tribulations of changing homes we forget to tell banks, utility companies and the DVLA for at least 2 weeks.

Almost a third of us naively rely on the new occupants of our old homes to forward our mail on to us. But the trust may be misplaced: less than half of new owners bother to send on any correspondence at all.

A spokesperson for CPP said: “Moving home is a key time for people to leave themselves vulnerable to fraudsters. Giving notification of change of address should be organised weeks in advance and should be put in equal priority to signing the deeds or booking the removal lorry. If it isn’t, the consequences could be very serious.”

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ByBox appoints new head of innovation

ByBox, the UK’s leading force in parts distribution, has further
strengthened its management team with the appointment of Mike Boxwell as Head of Innovation.

It is a completely new role and one which reflects the company’s commitment to innovation and technology.

With a background in IT, Mike has a long track record in the hand held scanner market with particular expertise in the courier and distribution industry.

Prior to joining ByBox Mike previously ran computer manufacturer Hand Held Products in the UK and also set up and ran Littlefoot which provides tracking and proof of delivery systems for major parcel carriers. Customers include La Poste, Royal Mail, DX, Amtrak, GeoPost and Business Post.

He has a strong knowledge of the parts distribution market having worked alongside ByBox for a number of years to provide hand held scanning solutions and will bring a valuable skill set to the already successful operation.

In his new role Mike will be involved in developing and managing a new scanning platform for ByBox’ unique network of electronic boxes whilst at the same time having specific responsibility for projects involving technology and innovation.

Mike is also no stranger to innovation having formed eBIKEshop in 2004 which
became the UK’s largest retailer of electric bikes. He sold the business at the end of 2005.

Aged 36 Mike is married with two young children.

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UK Mail heralds VAT breakthrough

UK Mail, the postal services arm of the Business Post Group, has secured an important breakthough that it is confident will soon see the launch of a brand new “Agent for Access” service. This will enable companies in the financial services and charity sectors to benefit from a downstream access postal service which they have previously been unable to enjoy. This unprecedented move extends postal choice to a whole new market of mailers and marks an important development for the deregulated mail sector.

Many of the largest mail users are businesses that are not VAT registered – such as banks, insurance companies and charities. Any VAT they are charged on services they use, has to be taken as a cost. This is down to the fact that they can’t charge VAT themselves when supplying their customers.

“Agent for Access” is the service solution tailored specifically to suit these businesses’ needs.

Up until now VAT rules have put this sector at an automatic disadvantage. Current legislation states that all postal operators (bar Royal Mail) must apply VAT to their postal charges, leaving non-VAT businesses with limited options. For them, enjoying UK Mail’s full range of service benefits has not always come with the same overall cost savings that UK Mail offers other mailers.

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Japan Post to offer mortgages, credit cards

Japan Post said on Tuesday it was planning to offer mortgages, credit cards and small business loans following its privatisation in October this year, in a move that would introduce a massive competitor to private Japanese banks in areas they consider vital to their growth.
The post office is currently restricted to taking deposits and making limited loans. But its total deposits of Y189,314bn (USD1,616bn, EUR1,215bn, GBP832bn) mean that it will become the world’s largest bank by assets once privatised, overtaking Japan’s Mitsubishi UFJ, which has deposits of Y115,600bn.

Japan Post’s future ambitions depend on which sectors it will be allowed to enter by the ministry of internal affairs and communications and a government committee entrusted with postal privatisation.

The plans to enter personal finance businesses comes as Japan Post has suffered a slow but steady decline in depositors in the country’s persistently low interest rate environment. Its deposits topped Y200,000bn as recently as last year.

Offering mortgages would be an efficient way for Japan Post to build up its banking operations, as borrowers tend to use their mortgage provider as their main bank.

Although mortgage interest rates are low, at about 3 per cent for a 35-year fixed-rate loan, they are good quality credit as default rates remain very low in Japan, says one banker.

Personal loans and small business loans, which offer banks higher interest, are also considered promising growth areas for banks.

What business Japan Post enters after privatisation is a sensitive topic as many banks are wary of the impact that entry by the world’s largest bank could have on already fiercely competitive markets.

Japanese banks are keen to expand fee and income businesses, as their traditional corporate lending business is expected to remain sluggish.

Japan Post is already a large seller of investment trusts, which is another business banks are keen to expand as the retirement of baby-boomers is boosting demand for investment products. Last year, net sales of investment trusts by post offices reached Y561.6bn.

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Royal Mail union demands 27% pay rise and shorter working hours

Royal Mail is facing union demands for a 27 per cent pay rise that the post group claims will cost an extra GBP1 billion a year, The Times has learnt.

The Communication Workers Union (CWU) has asked for the minimum payment of its members to be brought into line with average basic pay in the UK. The main postal union is also demanding that its members work a 35-hour week, rather than the existing 40 hours.

The CWU says that postal workers, who earn a minimum of GBP311 per week, should be able to benefit from investment and improvements expected in the business over the next few years.

In a letter to Royal Mail, Dave Ward, the CWU deputy general secretary, said: “Given the proposed scale of change within the company, we require a pay settlement that achieves UK average basic pay for OPGs [outdoor postal grades]. This was set at GBP395 per week in 2006 and we are undertaking research to establish whether the figure has subsequently increased.”

The CWU says that the rise could be phased in, although Royal Mail said that the union had called for the increase to be immediate. Mr Ward said: “The business has a five-year plan for success and that must include raising the value and status of postal workers’ jobs in that timescale.”

The postal organisation, which has a pension deficit of GBP6.6 billion and recently reported a plunge in its profits, says that it cannot afford such a rise. A spokesman said: “This pay claim will cost us GBP1 billion at a time when we are facing full competition and the cost of servicing our pension deficit is pushing our profits down 86 per cent.” The group maintains that it already pays better rates than its competitors.

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Renamed Taiwan Post announces speedier delivery

The newly renamed Taiwan Post Co announced yesterday that it had launched a same-day delivery service within Taipei City with the ability to deliver letters and packages within two or three hours.

The new service began yesterday and will initially only deliver to residents of Zhongzheng District, Datong District, Zhongshan District, Songshan District, Daan District, Wanghua District and Xinyi District.

In addition to normal letters and packages, customers can send urgent documents and product samples via the new service.

Postage will be determined by the weight of the letters or packages.

Frank Hung, deputy director of the Taiwan Post’s Taipei branch, said yesterday that customers could get a full refund if their letter or package failed to arrive at its destination within the three hour time limit assuming the Taiwan Post was to blame for the delay.

Hung said that the new service was in a trial phase.

Taiwan Post will consider expanding the service to other major metropolitan areas, including Taichung and Kaohsiung, if the service is successful, he said.

The minimum delivery charge is NTD64 (USD2) for letters or packages weighing under 250g.

The postal company already provides four-hour delivery in Taipei City, Taipei County and Keelung City.

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Global-Z releases Italian address-correction data-processing service

Global-Z International, a bureau specializing in the data processing of international mailing addresses for global direct marketers, has enhanced its Italy data-processing service — including the most current Italian postal codes — after the Italian postal authority, Poste Italiane, changed its postal code system.

Bennington, VT-based Global-Z said its Italy data-processing service is designed to help mailers update their Italian address files.

As many global postal authorities have done, Poste Italiane is enhancing its old postal-code system in pursuit of efficiency improvements. With this enhancement, which will continue through the year, the old Italy postal codes will not be available on Poste Italiane’s legacy processing and necessitate the manual processing of this mail. This postal-code update will benefit mailers using Poste Italiane with greater precision and speed delivering mail with updated postal codes.

Global-Z said that with the new postal-code system in place, mail with old, wrong or insufficient addresses would be processed as mail that has a non-existent address. As a result, the updated postal codes help assure delivery. This update includes Italian regions, provinces, municipalities and 8,500 neighborhoods, including all the streets of the 27 largest towns.

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Nightfreight drives back into black

Specialist delivery business Nightfreight has forged back into the black – posting pretax profits of pounds 4.1 million for the year to November 30, compared to the previous year’s loss of pounds 6.2 million. The company yesterday said it had improved turnover by 6.83 per cent, up by pounds 8.4 million to pounds 131.9 million, while operating profits rose 250 per cent, up by pounds 3.1 million to pounds 4.38 million.

Nightfreight, which started life at Willenhall in 1984 and still remains headquartered there, said the improvements in its performance reflected the benefits of an ongoing investment programme in both customer service and operational developments. Steve Allen, chief executive, said: “Throughout 2006, the company has made good progress improving its financial performance and commencing its transition to becoming a logistics and solutions business, offering customers new integrated services that will meet their changing requirements.”

Nightfreight is currently owned by Royal Bank of Scotland.

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