Tag: Europe

Postwatch, the watchdog for postal services, notes that Postcomm has published further details of its postal market licensing system. From 1 January 2006, licensed operators will be able to collect, sort and deliver mail to customers. Postcomm, the postal services regulator, today set out in three decision documents details of the licensing framework that will apply to postal operators other than Royal Mail; a code of practice protecting ‘mail integrity’, for example security of post, and staff recruitment; and common operating procedures, such as how competing companies should work together on a number of issues, such as misdirected mail. Commenting on the announcement today, Peter Carr, Chairman of Postwatch, said: “Opening up the UK postal market to competition will bring benefits to customers, including increased choice, improved quality of service and the possibility of lower prices. Essential to consumer confidence is that all postal operators – including Royal Mail – are reliable, with rigorous employment policies, taking all necessary steps to safeguard against theft and loss of mail.”

The postal industry is calling for an official summit with newly appointed Government adviser Sir George Bain, who will scrutinise key proposals in the run up to market liberalisation. Despite overwhelming industry support for his appointment, the postal sector claims it is still in the dark about the extent of Bain’s remit. Nigel Stapleton, chairman of Postcomm, states: “It is not clear whether this is a review or something much less formal.” A Department of Trade & Industry spokesman explains: “He will be examining the relationships between Royal Mail, its regulators and unions, ensuring a strong working partnership.”

In his new role as chief Government adviser on Royal Mail, Sir George Bain has broad industry support. But he has his work cut out as critics of pricing in proportion keep up the pressure. Two weeks ago, Alan Johnson, Secretary of State for the Department of Trade & Industry (DTI), raised a few eyebrows by announcing that Canadian-born Sir George Bain would assist ministers with key postal issues. He had been expected to call an independent review of Postcomm’s proposal to open up the market to competition ahead of the rest of Europe.
This week, however, Bain appears to be riding a wave of overwhelming support from the postal sector. A Communication Workers Union spokesman comments: “The Government has clearly recognised that there needs to be a more honest appraisal of Postcomm’s proposals.” It is a sentiment echoed by Institute of Practitioners in Advertising head of direct marketing David Payne: “Postcomm’s actions are significant, and, while Postwatch is doing a great job, there is a need for the Government to oversee key decisions.