DMA calls for caution over postal review
The DMA has warned the government not to place an “unrealistic burden” on businesses to fund a universal postal service when it publishes its review next year.
Secretary of state for business John Hutton announced the review on 17 December, outlining the government’s commitment to maintain the universal service while investigating the impact of opening the postal market to competition two years ago.
Royal Mail has introduced a range of proposals, such as pricing in proportion and zonal pricing, to help it compete more effectively in the new open market.
It has argued that its competitors have been able to cherry-pick the higher margin business sectors, while it has been hobbled with maintaining an affordable universal service for consumers and providing the final-mile delivery.
However, many of these new ideas impact more heavily on users of business mail, such as the direct marketing industry.
Walsh said he wasn’t sure how the DMA would be involved in the review, although it is a member of the Postwatch trade association forum.
However, he stressed that it is important that business users get involved, noting that the consultation would not include any direct representatives of large mail users.
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