Tag: Postwatch

Postcomm hold open meeting on postal strikes (UK)

Posted by | May 19, 2008 | |

On 14 May, Postcomm held an open meeting ‘After the Postal Strikes’ to hear evidence on Royal Mail’s application for suspension of the ‘c factor’ adjustment (restrictions on the level by which Royal Mail can raise prices if service quality is not met) and the bulk mail compensation scheme, following industrial action last year.

Postwatch presented a number of areas in the application which Postcomm should investigate further, including whether:

– the whole of quarter 3 (from 3 Sept to 2 Dec) should be included in the application.
– recovery periods, following industrial action, within the application are reasonable.
– claims for unofficial industrial action should be included.

Postcomm have invited further written evidence by any interested parties on the impact of industrial action and Royal Mail’s application to be submitted by the end of May.

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Customers ready to pay for first class post (UK)

Posted by | May 19, 2008 | |

Residential customers would rather pay a premium for next-day postal delivery than see standards fall, according to Postwatch.

In its latest evidence to the independent review of the impact of competition on the postal market, the consumer watchdog said users were opposed to any move away from the one-price-goes-anywhere service.

Under the terms of the universal service obligation, Royal Mail has to offer one delivery a day to every address in the UK, six days a week. The way this is paid for became a pressing issue this month when Royal Mail estimated the service made a loss of about GBP 100m last year.

Postwatch chair Millie Banerjee said today: “Postwatch is a keen supporter of a sustainable universal postal service which meets the needs of senders and receivers.

“We are acutely aware that declining mail volumes and the recent announcement by the Royal Mail that the UPS has become loss making gives customers real cause for concern about the future of the service they value.”

Included in Postwatch’s submission are the results of research carried out on its behalf among residential customers, small businesses and bulk mailers.

The research found that while the existing universal service obligation met users’ needs, many said some areas could be improved, including reliability and speed of delivery. Residential customers wanted deliveries six days a week while businesses were unconcerned whether they were made five or six days a week.

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Postwatch’s evidence to the Independent Review of the Postal Market

Posted by | May 19, 2008 | |

Postwatch, the watchdog for postal services, has today submitted to the Independent Review Panel answers to forty questions principally relating to the provision of the universal postal service (UPS). Postwatch also submitted and published the research it commissioned about the value of the universal service to customers.

Millie Banerjee, CBE, Chair of Postwatch said: “Postwatch is doing all it can to help the Independent Review Panel come forward with recommendations that overtly take account of customer needs. Postwatch is a keen supporter of a sustainable universal postal service which meets the needs of senders and receivers. We are acutely aware that declining mail volumes and the recent announcement by the Royal Mail that the UPS has become loss making give customers real cause for concern about the future of the service they value.”

Postwatch’s research is wide ranging and assesses; whether the current universal service fulfils customer needs and expectations, the sustainability of the universal service in the light of market changes; and alternative mechanisms for funding the universal service.

A summary of the research into the User needs of the Universal Service is attached at the end of this release. The main points from the customer perspective being:
• Next day delivery, reliability (in terms of published performance target being met) and deliveries to the door are valued;
• The frequency of collections should be included in the UPS but no strong preference for more than 5 days a week;
• Strong support for one price goes everywhere postage and recognition that current postage prices are affordable; and
• Homes but not all businesses value 6 deliveries a week.

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Understanding the postal needs of small businesses (UK). L13982

Posted by | May 14, 2008 | |

The UK’s 4 million small and medium sized enterprises (SMEs) are an important sector – rightly described as the engine room of the economy. This sector has, however, been largely ignored in terms of developments in their postal services since competition was introduced. The competitive battle ground has, until now, been tightly focussed on winning the business of the bulk mailing companies.

Postwatch, the watchdog for postal services, commissioned RS Consulting to research the way SMEs both use the postal services and how they could see them changing. Postwatch has today published on its website the results “SMEs’ current and future postal needs”. Visit www.postwatch.co.uk/research to see the report.

Speaking at a Postcomm seminar organised to discuss last year’s strike action by Royal Mail employees Millie Banerjee, CBE, Chair of Postwatch said; “The research Postwatch publishes today highlights that as well as their ‘sending’ needs SMEs also rely heavily on the mail they receive. For these businesses the cheques really are in the post and they want them delivered as early as possible. They also want there to be a significant gap between the daily delivery of post and the last collection of the day, so that they can respond in day.

“Last year’s strike action would have been very worrying for many small businesses. If it had continued some small businesses may have struggled to recover. Royal Mail has to find a better way to resolve its disputes.

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Loss making Universal Postal Service (UK)

Posted by | May 8, 2008 | |

Postwatch is, of course, concerned that the Universal Postal Service (daily deliveries and collections at uniform prices) has moved from profit to loss.

We welcome Adam Crozier confirming that the Universal Service is a huge asset to Royal Mail, part of the social fabric of the UK and vitally important to the economy. Customers will be reassured to read that Royal Mail’s vision for the future includes providing a high quality, efficient and profitable Universal Service.

It is timely that the Government’s Independent Review of the Postal Market is underway and will be reporting within the year on how the Universal Service should be financed in the future.

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