Tag: Royal Mail

Royal Mail will not be rushing to move into fully competitive European postal markets in 2009, even if protesting member states do drop their opposition to full liberalisation by that date (Christine Buckley writes).

Allan Leighton, the group’s chairman, may keep expansion plans shelved, or at least limited. Being “world class” is not the same as being “world active”, he said as the company retreated from a planned expansion overseas.

However, the UK operator will be glad at the future prospect of a level playing field across Europe. Britain itself has had a fully competitive postal market since the start of this year.

Despite being modest about its international aspirations, it is likely that Royal Mail will try some move in the European market once it opens. The British group already has a parcels division, GLS, which operates across Europe, after being founded in Germany.

It will not want to be left at the sidelines if the postal market develops, as some believe that it will, into one dominated by five or six players.

However, with several member states expected to try to hang on to their protected markets, no radical changes may be delievered in Europe’s postal markets until some while after 2009.

Tony Blair has ruled out providing further subsidies for post offices despite receiving a massive petition from campaigners.
However, the PM has pledged to “consider all options” in response to calls for greater protection for the network. John Peberdy, from Loughborough, the chairman of the National Federation of Sub-postmasters, presented Mr Blair with a petition signed by four million people, including 330,000 from Leicestershire.
Campaigners say the move to pay pensions and benefits directly into bank accounts instead of through the Post Office card account will devastate post offices, especially rural branches. They are calling for the plan to be scrapped.
The Government says the 800 smallest post offices are used by an average of 16 people a week and the rural network is supported by an annual subsidy of GBP150 million.