Tag: Europe

Irish An Post must compete

An Post is in deep trouble, and at least one former member of its board expects its plight to worsen. In his resignation letter, Paul Kavanagh made it clear who he thinks must take the blame. The company needs to modernise. The private sector is cutting into the traditional business and will go on doing so. An Post hopes for a future in technology and financial services, not junk mail and cards – which in the resigning director’s view would leave it “in a catastrophic position”. Mr Kavanagh says that “certain elements” (meaning the trade unions) “cynically disrupt, delay and frustrate all efforts.” If the union agenda prevails, it will result “in far greater downsizing and redundancies in the future.”

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UK Royal Mail reports improvements in lost mail volumes, and rise in inquiries and complaints

New figures today from Royal Mail showed a 5% improvement in the amount of UK mail delivered without loss, damage or substantial delay during 2004-05 than in the preceding year. More than 99.93% of the 22 billion letters collected and delivered by Royal Mail were last year delivered safely, to the correct address and without substantial delay. There was also an 11% rise in the number of inquiries and complaints to Royal Mail’s customer call centres – from 1,647,000 in 2003-04 to 1,824,000 last year, when mail services were disrupted because of massive changes in Royal Mail’s network.

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The FFPI welcomes the Commission’s decision to investigate State aid to the Polish Post

The Free and Fair Post Initiative (FFPI) welcomes the decision taken yesterday by the European Commission to launch a formal investigation on the compensation for the incumbent Polish Postal Operator, Poczta Polska, for providing the
universal postal service. In particular, the Commission will verify whether the Polish Post has correctly applied the proper cost allocation principles in evaluating the cost of the universal service and if there has been any overcompensation that might benefit the Poczta Polska at the expense of consumers and of competitors. “I fully share the view of Competition Commissioner Neelie Kroes who had commented that ‘if the aid goes beyond what needed for the provision of the universal service, Polish citizens will lose out by having their tax money spent unnecessarily and by having a less
competitive market for liberalised postal services’”, said FFPI President, Philippe Bodson. “It is key for postal users and for citizens that state aid rules are applied fully and straightforwardly”, he concluded.

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UK lost letter problem not yet licked

Postwatch welcomes Royal Mail’s announcement of an improvement in the amount of mail delivered without loss, damage or substantial delay during 2004 – 2005.
Peter Carr, Chairman of Postwatch said: “Recent experience of overall customer complaints shows a significant reduction which reflects the improvements in service levels being achieved. However, whilst any improvement in the delivery service is welcome, it still remains the case that over 15 million items of mail were lost during the year 2004 – 2005.

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UK Postcomm removes most bulk mail products from universal service

Postcomm has today proposed removing all but two bulk mail products from Royal Mail’s universal service provision from April 2006. Identifying the products which remain as universal services provides customers with clarity and gives Royal Mail greater flexibility to compete in the bulk mail sector, since restrictions on most of its bulk mail products would be removed, paving the way for the company to vary its rates for those products, while continuing to provide them on a UK-wide basis. Bulk mail services account for about half of Royal Mail’s total business volume. In order to protect customers, two products will remain within the universal service: Mailsort 1400 (first and second class) and Cleanmail (first and second class).

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