Tag: Royal Mail

Countdown to competition: UK businesses want choice

Postwatch, the watchdog for postal services, welcomes the survey findings published today by the industry regulator, Postcomm, showing that UK businesses want the introduction of full competition in the postal market. Postcomm’s survey of business mailers reveals that 80 percent favour competition in the postal market, and that many would like to have seen competition introduced earlier than 1 January 2006. Greater customer choice, the potential to lower prices, and incentivising Royal Mail to improve performance were the main reasons given for favouring competition. Commenting on the survey findings, Gregor McGregor, Chief Executive of Postwatch, said: “Competition will put customers in the driving seat, ensuring that they can choose the service provider that is best suited to their needs. These findings confirm that businesses want competition in the UK postal market, and recognise the many benefits that ending Royal Mail’s monopoly will bring.”

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2005 Business Customer Survey

Survey carried out by LEGG for Postcomm
Table of Contents
1 Executive Summary
2 Survey Methodology and Sample Characteristics
3 Understanding customer needs and customer classification
4 Understanding Key Characteristics of the Mail Market
5 Awareness of Competition and Switching Behaviour
6 Opinions of Service Provided by Royal Mail and Other Operators
7 Opinions on Access Agreements
8 Customers’ Views of Postcomm
P:LibraryPostalPostComm Formal Documents2005_Business_Customer_Survey_LECG.pdf

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Royal Mail accused of delaying investment in post offices

Royal Mail has come under fire for delaying investment in its urban post office network and leaving government money “lying idle” by spending only Pounds 13m of Pounds 30m allocated for the work. The criticism by Postwatch, the consumer group, coincided with the start of talks between the publicly owned postal operator and unions over further job losses. Royal Mail is lobbying the government to allow it to change its ownership and balance sheet structure, arguing that it needs billions of pounds of investment to compete effectively when the postal services market is opened to full competition next year. Royal Mail is also locked in a fierce dispute with Postcomm, its regulator, over future price controls. Any suggestion Royal Mail has failed to spend money already at its disposal could strengthen Postcomm’s argument that Royal Mail is overstating the prices it needs to charge customers to generate a decent financial return.

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Bigger, brighter, better UK post offices delayed –

Much needed investment to create bigger, brighter, better post offices has been lying idle for 3 years. A year ago Postwatch, the watchdog for postal services, wrote to the Chief Executive of Post Office Limited to express concern at the delay in carrying out work to upgrade post offices. Peter Carr, Chairman of Postwatch, has again had to write to Chief Executive of Post Office Limited to express Postwatch’s continued frustration that, as at the end of August, only GBP13 million of GBP30 million made available from Government had been spent. Work is incomplete in 72 per cent of the branches where improvements were promised. Peter Carr, commenting on the lack of progress said: “Post Office Limited have been quick to close post offices but slow at investing in those that remain. We are constantly told all the GBP30 million has been ‘allocated’ but the reality is that only GBP13 million has been spent after 3 years.

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More Royal Mail jobs to go as cash handling wanes

Royal Mail is set to announce more job losses, this time at its cash-handling division which is the subject of a new review by the postal operator, The Times has learnt. The operation, which employs 2,000 people, has shrunk over the past couple of years largely because of the Government’s decision to pay most benefits direct into claimants’ bank accounts. The closure of nearly 3,000 post offices in recent years has also hit the cash-handling business. Although other functions such bureaux de change have grown, Royal Mail last week told unions that it needs to consider the future of cashhandling. However, it is believed that the organisation is committed to keeping cash-handling for internal purposes -such as the movement of money and stamps around branches -although its work for external customers could be under threat. No deadline has yet been set for a conclusion of the review. However, Royal Mail is familiar with the problems facing the business. Two years ago it attempted to outsource the division but met with stiff opposition from the Communication Workers Union.

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