Tag: UK

Select Committee enquiry into post office closures

Posted by | Nov 30, 2007 | |

In a Westminster Hall debate by MPs this week on the programme of 2,500 post office closures, Peter Luff, Chairman of the relevant Select Committee, stated:

“It is a great pleasure that the swansong debate of the Select Committee on Trade and Industry, now the Select Committee on Business, Enterprise and Regulatory Reform, should be so popular. I am informed by the Speaker’s Office that this is the most popular ever Westminster Hall debate on a Select Committee report.”

“The new Select Committee will launch an inquiry early in the new year into the progress of the post office closure process. We will have hearings, probably in late January or early February, and will revisit the process then, because this matter is obviously of deep concern to many colleagues.”

Read More

Strikes and floods cause poor service results by Royal Mail

Posted by | Nov 30, 2007 | |

With the release of their half-year performance results, Royal Mail has confirmed what customers already knew: this summer’s official and unofficial strikes and the widespread flooding seriously affected the quality of postal services throughout the UK.

Howard Webber, Chief Executive of Postwatch, commenting on Royal Mail’s announcement said, “Given the floods and the industrial dispute, customers will not be surprised that Royal Mail’s performance has been seriously below par during the summer. There will, however, be a collective sigh of relief that the bad news is over and that the future looks distinctly brighter.

“Industrial peace between Royal Mail and the Communication Workers Union means the industry, after a step backwards, can take great strides forward. Next year, customers should expect Royal Mail to be announcing a much improved performance. That should help all of us to post with confidence.”

Read More

EU clears UK to provide GBP 634 Million subsidy to Royal Mail unit

Posted by | Nov 30, 2007 | |

The European Commission cleared the U.K. government to provide a GBP 634 million subsidy to a unit of state postal carrier Royal Mail.

The subsidy will be paid out over a three-year period to Post Office Ltd. which operates 14,000 post offices in the U.K. The funds will cover the costs of the postal carrier’s loss-making operations, ensuring universal service across the country.

The commission for the past 15 years has been trying to dismantle postal- service monopolies in the European Union. Some freight services have been opened to greater competition, but basic letter carriage remains a closed market in most countries.

Last month, E.U. countries voted to delay full postal-service liberalization to 2011. The commission, the bloc’s regulatory arm, had pushed for a 2009 deadline.

Under E.U. rules, state subsidies to businesses are legal only if they don’t distort competition. Since the Royal Mail is a legal monopoly, the commission reviewed its subsidy to ensure the money won’t unfairly subsidize services such as bill-payment and cash handling where Royal Mail competes with private-sector companies.

Read More

Royal Mail confirm Industrial action harmed services this year

Posted by | Nov 30, 2007 | |

New figures released today by Royal Mail confirm that industrial action during the second quarter of 2007-08 damaged services for postal customers. 78.4 pct of First Class letters reached their destination the working day after posting, compared with an on-target performance of 93 pct in the first quarter of the year.

Royal Mail Marketing Director Alex Batchelor said, “We are very aware that our customers simply didn’t receive the service they deserve as a result of this year’s strike action by the Communication Workers Union – and we’re very sorry that they were let down.

“Customers are all too aware that strike action continued during the third quarter of the year which means that targets will also be missed for the autumn period. But this week’s vote in favour of our pay deal is good news for customers – it’s a green light for Royal Mail to invest in new technology and modernise our operations so that we can return to the record highs in quality of service reached in the last two years and build on that success for the future.”

Read More

Royal Mail fights back over zonal pricing plan

Posted by | Nov 29, 2007 | |

Royal Mail has mounted an aggressive defence of its proposed zonal pricing scheme, claiming Postcomm’s rejection of its original plan was ‘fundamentally flawed’.

The 44-page response comes five months after Postcomm threw out the first proposal (precisionmarketing.co.uk) but includes only a few minor amendments. Royal Mail is sticking to its guns – the main tenet of its argument is that increased competition in the postal market is allowing private operators to cherry-pick areas where it is cheaper, and therefore more profitable, to deliver mail.

It has put forward a strong legal argument, claiming Postcomm has not “undertaken a competition economics assessment of the application” and that its stance is “inconsistent with EU and UK competition law on discriminatory behaviour”. It continues: “This is a fundamental flaw in Postcomm’s consultation proposal which Royal Mail believes is legally incorrect.”

Under zonal pricing, brand-owners will pay more for deliveries of items in many rural and some urban areas. Royal Mail maintains that the move is in line with its aim to make its services ‘cost-reflective’.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest