Tag: TNT

Post rivals urge watchdog to bare teeth over Royal Mail privileges

Posted by | Mar 16, 2008 | |

Private postal operators are calling on the Government to take a “brave” decision to end Royal Mail’s monopoly on large parts of the market as it considers the future of Britain’s mail services.

Operators including TNT Post and DX, which employs a fleet of private sector postmen in Scotland, are pressing the Government to end the special privileges afforded to Royal Mail, such as VAT exemption, which they say prevent equal competition.

As the regulator PostComm considers responses to a consultation on the future of postal services, which closed on Friday, the operators are urging Sir Nigel Stapleton, PostComm’s chairman, to take a brave stance. They hope the PostComm inquiry will set the tone for a wider review by the Department for Business, Enterprise and Regulatory Reform, which is due to report this summer.

James Greenbury, chief executive of DX, said: “The first decision PostComm and the BERR (Department for Business, Enterprise and Regulatory Reform] have to take is to actually take a position on Royal Mail. Our view is that Royal Mail is an institution left over from the 1970s. It has a number of advantages over all of the competition which have to be levelled out. They don’t have to charge VAT and we do. It takes out 40% of the market.”

Nick Wells, chief executive of TNT Post, said: “We need a level playing field. The market is still overshadowed by VAT distortion which closes off 40% of mail volumes to competitors.”

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Deutsche Post workers threaten strike action

Posted by | Mar 13, 2008 | |

German postal workers could begin industrial action an April 1st warned the services union Verdi.de.

Workers at Deutsche Post are unhappy about working hours and dismissals and have threatened to strike unless the company takes steps to address what they see as ongoing problems inside Germany’s key postal operator.

A recent move by the coalition government to set a minimum wage for postal workers in Germany was challenged by rivals including Dutch operator TNT, and ruled unlawful by a German court.

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UK postal competition creates 3300 new jobs in the UK

Posted by | Mar 12, 2008 | |

In the past four years, competition in the UK postal market has created 3300 new jobs, according to an independent study by Europe Economics and commissioned by TNT Post. The research found the economic benefit to the UK economy is at least GBP 229 million and could be considerably more by 2016 with an extra 6600 jobs created and an additional GBP 405 million into the UK economy.

One of the key findings of the report found that although there are now 18 licensed competitors to Royal Mail in the UK, it continues to deliver the last mile for 99.8 per cent of mail. Competition has been stifled by the Royal Mail VAT advantage, where 40 per cent of UK business mail remains out of the reach of its competitors.

The report also found that these benefits could have been much greater and earlier if end to end competition and modernisation of the Royal Mail had been quicker.

David Stubbs, Europe Economics, said:

“Royal Mail has been a key beneficiary of competition to date. Prior to the deregulation of the UK postal market, its pace of innovation and reform was slow relative to that in other postal markets. Royal Mail is facing up to its future and starting to address the challenges of its customers who are looking at new ways to communicate or advertise their products.”

Nick Wells, CEO TNT Post UK, said:

“This research proves that postal competition in the UK is good. It is good for business. It is good for the UK tax payer. It is good for Royal Mail. We want to create jobs, we want to innovate, we want to deliver for our customers but we are being held back by the Royal Mail VAT advantage. It has to go.”

The research study also found that competition has allowed customers to benefit from innovative services introduced by competitors.

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