Tag: Royal Mail

Deregulation of the postal industry has not yet severely damaged Royal Mail’s position as the main provider of post to businesses, according to Postcomm’s annual Competitive Market Review.

The watchdog’s report shows that Royal Mail still serves 99% of businesses – the same as in 2005. The postal services market was opened to full competition on 1 January.

Royal Mail’s rivals, led by TNT Post UK, DX Network Services and DHL Global Mail, appear to be expanding their customer base, albeit from a very low starting point. These competitors are used by 6.7% of businesses for at least some of their direct mail – four times more than in 2005.

‘Although Royal Mail remains by far the biggest operator, competition has encouraged it to raise its game,’ said Postcomm chief executive Sarah Chambers.

Royal Mail is launching a far-reaching employee assistance scheme that will put the company at the leading edge of workplace advice and help programmes.

Known as HELP (Health and emotional wellbeing, Employment advice, Legal services and Practical assistance), the new service will be free of charge to employees and members of their immediate family. It offers confidential advice round-the-clock on both personal and practical topics from independent experts. These could range from money problems, legal issues and work-related topics to finding local service providers, such as child minders.

Initial contact to the HELP service is via a dedicated helpline, with the option of face-to-face counselling if appropriate to cover issues such as stress management, bereavement, and relationship issues.

Tony McCarthy, Royal Mail’s People and Organisational Director, said HELP was part of Royal Mail’s commitment to support its people whenever they needed it under the company’s continuing drive to make Royal Mail a great place in which to work.

Rural Post Offices would continue to receive a social subsidy beyond 2008, Tony Blair assured MPs yesterday.

He said the network had a “social purpose” but told the Commons that support would be limited because of the funds available.

“There is a role for public subsidy. Over the past few years we have put about pounds 2 billion into the Post Office network precisely because we recognise that it has a social as well as a commercial purpose. We are looking at how we can sustain that purpose.”

Mr Blair was challenged at Prime Minister’s Questions by Sir Robert Smith, Liberal Democrat MP for West Aberdeenshire and Kincardine, over a critical report earlier this week from trade and industry select committee. It warned that the benefits of the Post Office branch network could be “lost forever”.

Sir Robert urged the Prime Minister to accept the recommendation that the social network subsidy would have to carry on beyond 2008.

While promising that some subsidy would continue, Mr Blair said there was “a limited amount of funds available”.

There should be research into what other services the network could provide to give it a “different and more modern rationale”.

Earlier, John Prescott, who chairs the Cabinet committee overseeing post offices, also came under pressure at Deputy Prime Minister’s Questions. He faced challenges over the decision to phase out the Post Office Card Account and complaints over people no longer being able to renew their car tax and television licence at post offices.