Tag: UK

EU Commission propose tax hike on postal services

Posted by | Feb 11, 2004 | |

In December 2003 the European Parliament rejected the Commission proposal to remove the VAT exemption for public postal services, however the Commission did not withdraw their Proposal and it has therefore been referred back to the European Parliament Economic and Monetary Affairs Committee. The Rapporteur Olle Schmidt has now drawn up another report making recommendations for am-endments which he feels will act as a compromise to Members. He is basically accepting that VAT will be charged – to bring about a level playing field – but he feels that his changes could soften the impact and which at the same time will contribute to the efficient running of the internal market.

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UK Mail deal opens door to delivery network

Posted by | Feb 11, 2004 | |

Royal Mail is in preliminary talks with the Dutch and German postal services, TPG and Deutsche Post, about allowing them access to its delivery network
after reaching a ground-breaking deal with a British rival yesterday. The deal is the first of its kind in Europe and was concluded after two years of talks. It in effect freezes regulator PostComm out of the process of enabling access to Royal Mail’s network of 73 mail centres and 1,450 delivery offices. It is understood that negotiations on a similar deal have already begun with TPG, which has a full licence, and with Deutsche Post, which is holding talks with PostComm on a winning a full licence to compete in Britain. Other groups waiting in the wings are Hays and Express Dairies.

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UK mail deal sets precedent for market liberalisation

Posted by | Feb 11, 2004 | |

A significant hurdle to the liberalisation of the postal market was cleared yesterday after Royal Mail agreed for the first time to deliver letters collected and sorted by a private company. The terms of the agreement are likely to set a precedent for deals between the state-owned mail group and companies such as Deutsche Post of Germany and TPG of the Netherlands, who have tried to break into the UK market for several years.
From April, Royal Mail will deliver post that is collected and sorted by Business Post, its private sector rival. Rather than emptying post boxes on the street, Business Post, through its subsidiary UK Mail, will collect mail from businesses such as phone companies and utilities that send letters in bulk.

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Postcomm welcome Royal Mail/UK Mail agreement

Posted by | Feb 10, 2004 | |

Postcomm have welcomed the agreement that will enable Royal Mail postmen to carry post on behalf of rival operator, UK Mail, for “the last mile.”

The agreement marks an important step forward for competition in postal services. Under the arrangements, UK Mail will hand over pre-sorted mail to Royal Mail at inward mail centres, from where they will be processed for eventual delivery by Royal Mail postmen. Royal Mail will charge UK Mail a fee for each letter, ranging from 13p for mail weighing less than 60 grams to GBP 3.75 for items weighing 2Kg.

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Business Post could double in size over 3 years following UK Royal Mail deal

Posted by | Feb 10, 2004 | |

Paul Carvell, chief executive of Business Post PLC, said today’s ground-breaking access agreement with Royal Mail PLC could double the size of Business Post over the next three years. Under the terms of the deal, business letters sent via Business Post’s UK Mail division will be delivered by Royal Mail, who will be charging around 13 pence per letter for the service. Analysts have assumed that 2006 will see an achievement of 1.5 pct market share, rising to 3 pct by 2007. Carvell said the group is targeting a 3 pct market share in the medium term.

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