Tag: Royal Mail

Support for UK's Post Office gets Brussels approval

Posted by | Mar 8, 2007 | |

A total of GBP313 million of support from the UK government has been authorised by the European Commission in accordance with the EC Treatys rules on state aid.

This is to allow Post Office limited to continue to provide public services for the financial year 2007/08. These include an increasing range of commercial services such as lottery tickets, foreign exchange, telephone and insurance products as well as cash facilities, bill payment, licensing and, of course, Royal Mail, the UKs main postal services provider.

Public services are a vital part of the European economy, and the Commission recognises their importance, said EU Competition Commissioner Neelie Kroes. Aid can therefore be approved where the amount is strictly limited to what is necessary to cover the costs of public service obligations.

In 2003, the Commission approved a system whereby losses incurred by the entirely state-owned company in providing public service would be covered by government funds and in December 2006, the UK announced the intention to extend this for another year. The amount notified for the financial year beginning 1 April 2007 is GBP313 million (USD460 million).

Read More

Court curbs mail compensation

Posted by | Mar 8, 2007 | |

Corporate customers of Royal Mail who have received poor service will have their ability to secure compensation curbed as a result of a Court of Appeal decision yesterday.

Three senior judges partially reversed a High Court ruling, handed down in December 2005, over the terms of a compensation scheme, which went in favour of Postwatch, the consumer body, and paved the way for users of bulk mail services to claim tens of millions of pounds.

Read More

Royal Mail's proposals for zonal business post pricing comes under fire

Posted by | Mar 8, 2007 | |

Royal Mail last week called for changes to its pricing structure, which would include dropping its obligation to offer a single price to deliver franked business post to any address in the UK.

But the Periodical Publishers’ Association (PPA) said the proposals would increase the cost of magazine delivery in London by 2.5%, on top of a 10% hike already due in April this year.
The organisation passed Royal Mail’s proposal off as “benefiting no-one but Royal Mail, and hugely damaging the magazine industry.”

The proposals, which include a 6p rise in the cost of a first-class stamp, have also been lambasted by PostComm, but have met with some sympathy from direct mail printers.

Read More

Direct marketers get Royal Mail 'boost'

Posted by | Mar 6, 2007 | |

It has been suggested that the new pricing plans unveiled by Royal Mail could have a significant benefit for the direct marketing sector.

According to economist Ian Senior, the direct marketing industry could gain from the proposed changes, which would see business post charges reduced while domestic postal charges would be increased.

He explained to the Telegraph that the changes will mean companies will be able to afford more mail shots.

However, another important way for a firm to increase its value for money from a direct marketing campaign is to employ data cleansing processes so that it can reduce any losses caused by dirty data.

By carrying out data cleansing processes, a firm can get rid of any dirty data from its systems, thereby providing a high standard of data quality and ensuring that mail shots are not sent to old or incorrect addresses.

As Mr Senior himself pointed out when referring to the potential postal changes, “it is all about keeping costs down”, and the same benefits can be found in a data cleansing exercise.

Read More

MPs warn competitive pressures threaten ability to cross-subsidise

Posted by | Mar 6, 2007 | |

Competitive pressures on Royal Mail are threatening its ability to cross-subsidise unprofitable activities, MPs will today warn, in a report highlighting concerns about the government’s plans for the loss-making Post Office network.

The trade and industry committee is likely to examine the impact of existing price controls on the state-owned postal operator, its chairman told the Financial Times. “There may well be a case for looking again at the regulatory regime,” Peter Luff said. His committee’s report cites a number of state contracts Royal Mail has lost to rivals since the postal market was opened fully to competition last year. Royal Mail’s loss of profits is “inevitably threatening the cross-subsidisation of its unprofitable elements, including the post office network”, the report states.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest