Year: 2005

UK post offices in jeopardy despite big cutbacks

Posted by | Feb 24, 2005 | |

The future of some post offices remains uncertain despite a huge closure programme designed to boost the financial viability of those that remain, an official report has found. Almost one in three, or 7,000, post offices has been closed in the past 22 years, to the fury of many small communities and elderly people. However, the drastic cuts in the network may still leave some sub-post offices vulnerable to falling volumes of business, the National Audit Office (NAO) said. A report by the Government’s main spending watchdog concludes that the future of the remaining post offices cannot be “guaranteed” and urges the Department of Trade and Industry (DTI) to be alert to the problem. Post Office Limited is on course to shut about 2,500 urban post offices in the latest closure programme. However, the NAO said there was still some uncertainty as to whether the programme, backed by Pounds 210 million of public money, would achieve its long-term aim.

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UK post offices facing bleak future MP warns

Posted by | Feb 24, 2005 | |

The future for some post offices remained “bleak” despite a closure programme aimed at boosting their viability, a leading MP warned, following an official report into the business. The National Audit Office said the Government needed to be alert to falling volumes of business that could threaten sub post offices. Despite the closure of 2,500 branches there was uncertainty whether the programme, backed by £210 million of government money, would achieve its aim of producing a viable network, according to the study. Edward Leigh, chairman of the Commons Public Accounts Committee, said: “The future for some post offices is still bleak. I am concerned to learn that even after the programme of 2,500 closures in urban areas, and work to provide different kinds of financial services, many individual sub postmasters may still struggle to make enough profit to stay open.”

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NAO Report on the DTIs Financial Support for Post Offices

Posted by | Feb 24, 2005 | |

Contents:
The network of post offices in the UK 7
The viability of post offices 8
The financial position of Post Office Limited 9
The status of Post Office Limited 10
Providing services through the post office network 10
The scope and methodology of this report 11
Triangle consultants produced a report for the NAO which contributed to this final report.
P:LibraryPostalNAO DTI Financial Support for Post Offices.pdf
Printed copy: L13963

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National Audit Office report on UK post offices published

Posted by | Feb 24, 2005 | |

Postwatch welcomes the National Audit Office (NAO) report into the Department of Trade and Industry’s financial support for post offices. The report sets out the problems facing the post office network, and in particular, how changes to pension and benefit payments and customer shopping habits have put considerable financial pressures on many post offices. In this light, the NAO’s recommendation for continued business advice and assistance for subpostmasters is to be welcomed. The NAO confirms Postwatch’s concern that the introduction of pilots in rural areas by Post Office Ltd (POL) has thus far not progressed
sufficiently swiftly. In the coming months, POL needs to take significant
steps forward in exploring innovative delivery mechanisms that meet rural
customers’ needs.

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Seur to double overseas business within a year after La Poste tie-up

Posted by | Feb 24, 2005 | |

The recent tie-up between Seur and France’s La Poste has set up the Spanish delivery services group for strong international growth over the next five years.

According to Ramón Mayo, the vice president of Seur España, the alliance with La Poste will see the contribution of the Spanish group’s international operations to total turnover double within a year to 14 percent from 7 percent.

La Poste unit GeoPost acquired a 12.5 percent stake in Seur España out of the 21 percent put on the block by the founder of the Spanish group Justo Yúfera in February. The remaining 8.5 percent ended up in the hands of the 64 remaining partners in the transportation business.

Mayo said Seur had been looking at ways off expanding its overseas business for some time. However, he said the process of finding an international associate was complicated by the structure of the group, which is organized around 85 franchises handed out by its partners.

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UPS CEO optimistic about growth prospects in 2005

Posted by | Feb 23, 2005 | |

Despite concerns rivals are gaining ground, United Parcel Service Inc. Chairman and Chief Executive Michael Eskew said on Wednesday he was optimistic about the package deliverer’s growth prospects in 2005. Atlanta-based UPS has been battling in the past year to overcome a perception that it is underperforming FedEx Corp, its main competitor, in the giant US ground delivery market. While UPS remains the leader in the US ground delivery market, its volumes in this key area grew a sluggish 1.6 percent in the fourth quarter of 2004, down from 2.5 percent growth in the same period in 2003. “We had a tough December, but we’re optimistic about this year,” Eskew told reporters on Wednesday after a speech to an Atlanta business group.

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German Deutsche Post appeals cartel watchdog ruling

Posted by | Feb 23, 2005 | |

German postal services company Deutsche Post AG has appealed the ruling of the Federal Cartel Office (FCO), which forced it to offer competitors discounts for its mail dispatch services, the company said on February 22, 2005.

Deutsche Post strives to defend itself from the increased pressure by FCO and by some German politicians to give up its monopoly rights earlier than 2007 as scheduled.

The appeal is aimed at only preventing the immediate application of the decision and Deutsche Post expects the results of the appeal in the next few weeks, company CEO Klaus Zumwinkel said.

The company does not plan to hinder the opening of the market as demanded by the European Commission (EC), banking experts said.

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Polish Post’s Monopoly on TV License Under EU Scrutiny

Posted by | Feb 23, 2005 | |

The government has given the state postal service Poczta Polska a monopoly on collecting and controlling the payments for public TV licenses. The National Broadcasting Council (KRRiT) decided that Poczta will receive 6 percent of the gathered funds. The provision amounted to ZL56 million last year. MPs and the KRRiT have decided to look into the matter. KRRiT Economic Department Director Jacek Kufel said Poczta should receive a maximum of 4.5 percent, since the less money Poczta gets, the more funds will be available for public TV and radio broadcasting. It is also possible that the European Commission will look into the monopoly, as Poczta Polska is currently being looked into because of its application for EU subsidies. The government is planning to introduce a new law that would enable competition in the field of fee collection through conducting a tender.

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