Post-Switch – "Choosing the best operator"
Post-Switch – “Choosing the best operator”
Read MoreTag: Mail Services
The Postal Group – "Post: is there another way?"
The Postal Group – “Post: is there another way?”
Read MoreMail competition is 'no benefit' (UK)
The liberalisation of the UK postal service has produced “no significant benefits” for either households or small businesses, a report has said.
That is the initial finding of an independent review of the UK postal sector commissioned by the government.
It warned there was now a threat to the Royal Mail’s financial stability.
The independent panel warned that the “substantial threat” to the Royal Mail’s financial security threatened the universal service – the collection and delivery to all UK addresses.
Maintaining the universal service is at the heart of this review – ensuring collection from pillar boxes and post offices and delivery to all addresses
As a result, the independent panel – which will produce its full report in the summer – said the continuing “status quo is not tenable”.
While the initial report said homes and small firms had not gained from the increased competition, it said large companies had “seen clear benefits from liberalisation – choice, lower prices and more assurance about the quality of the mail service”.
It says these large firms have benefited from the big growth in competition in the bulk mail sector – postal firms that collect, sort and transport bulk mail before handing it over to the Royal Mail for the final delivery.
Yet at the same time, the report found that the Royal Mail still had “virtually no competition” in the delivery of addressed letters over the “final mile” to letterboxes.
The core problem for the Royal Mail is that while it has lost business in the lucrative bulk mail collection and sorting market, it still has to uphold the universal mail delivery service, which struggles to make a profit.
The Royal Mail and regulator Postcomm have both declined to comment on the initial report.
Read MorePotential job losses in mail, union warns
Canada Post’s new union president is warning Canadians that their mail delivery could be in jeopardy and hundreds of jobs could be lost.
In an interview with Sun Media, new Canada Post national union president Denis Lemelin accused the Conservatives and Canada Post CEO Moya Greene of attempting to deregulate postal services in Canada.
Lemelin pointed to the Harper government’s recently announced “strategic review” of Canada Post, set to examine which services should remain under the monopoly of Canada Post and which should become fair game in a competitive market.
A final report is expected in December.
Canada Post currently has a monopoly over the delivery of letters up to 500 grams to 15 million doors across the country.
Lemelin fears that deregulation could mean that Canadians in metropolitan areas might have their daily mail handled by UPS, Federal Express or Purolator.
“These private companies could decide to implement distribution centres in the greater areas and handle mail delivery for Montreal, Vancouver and Toronto,” he said.
He also warned that deregulation would result in hundreds of layoffs across Canada and an increase in stamp prices.
“The private sector would invest in the greater metropolitan areas — where it’s profitable,” he said.
“The public postal service would end up with less profitable sectors, such as rural areas.
Postcomm welcomes Government review of the postal services market (UK)
Postcomm welcomed the emerging views of the independent review panel on the UK postal services market.
Postcomm chairman, Nigel Stapleton said: “We will be considering the emerging views of the panel and will use them to inform our second submission.”
Postcomm’s first submission highlighted the positive impact for customers since the addressed letters market was opened fully to competition in January 2006. Since then:
– larger customers have enjoyed lower prices and increased innovation;
– residential mail users have experienced record levels of service quality from Royal Mail; and
– smaller businesses and public sector customers are now beginning to reap the benefits of choice.
Postcomm believes the future health of Royal Mail, the universal service, and the addressed letters market are inextricably linked. Decisions about fundamental reform must be taken swiftly if Royal Mail is to lead a healthier mail market and provide a strong universal service.
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