Tag: Royal Mail

Ministers challenged over UK Post Office chief

The Government was today challenged over the appointment of Post Office chairman Allan Leighton. Opening a debate on the Royal Mail, former postman and ex-union officer Labour’s Lord Clarke of Hampstead told trade and industry minister Lord Sainsbury of Turville the issue “concerns the method of selecting Mr Leighton for the job”. He told peers: “Two years ago I was told by a very reliable friend, who actually knew what was going on and witnessed it, that when the short list was prepared and presented to the board, Mr Leighton’s name was not on that list. “The information I received … said that a call was made from the DTI to the board to have Mr Leighton’s name added.

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UK Royal Mail targets businesses in multi-million pound campaign to prepare for new pricing system

Royal Mail has launched a direct mail campaign to help businesses across the UK prepare for the introduction of its new pricing system, Pricing in Proportion (PiP). Packs providing information on the new pricing system, as well as advice on how companies can manage the impact of PiP, are being sent to nearly half a million small, medium and large businesses from this week. The mailing follows a series of tailored mail-outs in December 2005 to companies in the marketing, publishing, charity and home shopping sectors who will be most affected by the changes Pricing in Proportion will be introduced on 21 August 2006 and takes into account the size and shape as well as the weight of mail.

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Competition might mean the end of the Royal Mail's monopoly, but the 350-year-old organisation could still deliver surprises

THESE are testing times for Adam Crozier. The Royal Mail’s Falkirk-born chief executive has been facing the prospect of open competition for his pounds-6 billion-plus monopoly since January 1. Foreign players, including TNT and DHL, owned respectively by the Dutch and German national post offices, as well as Birmingham-based UK Mail, part of Business Post, are all eyeing up a slice of the action. Most of the 14 players who have been awarded UK operating licences by regulator Postcomm are hoping to cherrypick the most profitable parts of Royal Mail business.

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Royal Mail in race to appeal GBP50m ruling

Royal Mail has three weeks to appeal against a High Court judgment which found it be in breach of its own compensation scheme, or it will be forced to pay more than GBP50m to disgruntled bulk mailers. Industry watchdog Postwatch brought a judicial review against industry regulator Postcomm when Royal Mail withheld around GBP40m-worth of compensation from companies after failing all 15 of its minimum service targets in 2003 and 2004. Bulk mail customers should have automatically received compensation totalling GBP80m, but Royal Mail used late invoice payments as a reason to withhold 50 per cent of that. A Royal Mail spokesman says: “We will be carefully studying the full written judgment. But we expect to ask for leave to appeal against the ruling. It is too early to say what impact the ruling will have on our business with bulk mail customers.”

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Can new players make inroads on Royal Mail's old stamping ground?

As full competition begins in the mail market, the operators licensed by Postcomm will be able to offer favourable deals to marketers. Yet Royal Mail’s monopoly hardly seems under threat, says Sarah Chambers

A recent survey commissioned by Postcomm revealed that eight out of ten business mailers expect a competitive mail market to reduce prices, offer better choices and improve the quality of Royal Mail’s service. They also believe the postal market should be opened to full competition as soon as possible.

From this month, businesses throughout the UK will be able to see whether these predictions come true. After 350 years, Royal Mail’s monopoly of the letters market will come to an end and mailers will be able to use other companies licensed by postal industry regulator Postcomm to carry their mail.

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