Royal Mail set to back axed Postwatch business group (UK)
Royal Mail is understood to providing financial backing so that the Postwatch group which handles business customer complaints will not be axed when the watchdog folds later this year.
The move follows concerns that business customers would be left high and dry in the new beefed up National Consumer Council, headed by Lord Whitty.
The new-look NCC, which will see Postwatch, energywatch, and CCWater subsumed into the consumer super-body, is due to launch on October 1. It was first mooted nearly two years ago.
At the time, the DTI tried to assure the House of Commons that the merger was not a cost-cutting exercise.
But there has been no provision for the big mailing companies which used to sit on Postwatch’s Trade Association Forum (TAF), chaired by direct marketing industry stalwart Judith Donovan, who is also chair of Postwatch North.
Ironically, the TAF has been credited with winning many battles against Royal Mail.
During the consultation on pricing in proportion, Donovan claimed Postcomm had created “a dog’s dinner” by revealing it supported the scheme even before the consultation period was complete. The group eventually won a number of concessions.
Postwatch also took Royal Mail to court – and won – over GBP 40m worth of unpaid compensation owed to big brand owners. Royal Mail won an appeal but it only covered payments to customers who were in arrears.
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