Tag: UK

Watchdog saves Royal Mail with stamp price increase

Posted by | Dec 4, 2005 | |

Postal regulator Postcomm is expected to throw a lifeline to financially stretched Royal Mail this week in the form of an unexpectedly generous agreement on future stamp prices.

In its final price review, to be unveiled on Wednesday, it is thought Postcomm will say it has heeded warnings from Royal Mail chairman Allan Leighton about the state-owned operator’s financial plight, particularly its pounds 4.2 billion pension deficit. Last month Leighton told the Trade and Industry Select Committee that the deficit made Royal Mail technically insolvent.

While the price control cov ers a range of prices, the key measure is the first class stamp. Postcomm’s initial proposals, published in June, indicated an increase from 30p to 34p between 2006 and 2010.

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Pitney Bowes delivers . . . showing Royal Mail the route

Posted by | Dec 4, 2005 | |

Even Sir George Bains review of the Royal Mail seems to have got lost in the post. Widely tipped to come at the end of November, the Department of Trade and Industry says the former head of the London Business School will now not reveal his views on the future of the Royal Mail. Delivery is everything and the Government-sponsored research will, however, begin to surface in various policies just as the Royal Mail faces the toughest challenge in its 345-year history. On 1 January it loses its monopoly as part of cross-European liberalisation which will open the market to full competition. Firms such as Pitney Bowes, with a market value of USD9.62bn (GBP5.56bn, E8.20bn), will be looking for more opportunities in the British market along with Frances Neopost, and Francotyp-Postalia of Germany. Pitney Bowes is a good example of an old-fashioned company that has transformed its business to capitalise on the diverse ways we receive our messages. It is more commonly associated with inventing the franking machine and has now diversified into data management, electronic billing and commercial printing.

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Donovan slams MPs attack on UK Postwatch as ‘nonsense’

Posted by | Dec 2, 2005 | |

Postwatch North chairman and industry stalwart Judith Donovan has hit back at a Public Accounts Committee (PAC) report which claims the watchdog is “feeble”, branding the findings “nonsense”. The PAC, made up of MPs, this week published its report into Postwatch and Energywatch, highlighting that huge numbers of complaints relating to lost mail and wrong energy bills are still flooding in, five years after the groups were established. But Donovan counters: “It makes you wonder if it’s writing about the same organisation. To say we don’t have grass-roots support is nonsense. We’ve got nine regional offices. You couldn’t get more grass- roots than that. As for a rise in complaints, we’re very disappointed that the committee hasn’t remembered our briefing last January. Of course we’ve had more complaints. At that time Royal Mail was falling apart.”
She continues: “The committee has also failed to recognise our work in getting Royal Mail to revise its pricing in proportion scheme.”

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UK Parcelforce has big unfair advantage, says TNT boss

Posted by | Dec 2, 2005 | |

Parcelforce has an unfair advantage and should be privatised, the managing director of rival TNT Express Services has claimed. Tom Bell attacked the Royal Mail’s parcel delivery business claiming its VAT exemption was unfair and discriminatory. “It’s not just companies such as mine which are being discriminated against. The taxpayer is losing out because Parcelforce should be paying VAT and those taxes could be used for the greater good of the country,” Mr Bell said. Atherstone-based TNT said the comments echoed sentiments from think-tank The Institute of Economic Affairs. Last year, the IEA said there was no case for Parcelforce to remain in Government ownership and that it should be privatised, even if it led to it going out of business. Mr Bell said: “Parcelforce is subsidised by the Government.

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UK DMA splits Robottom role to address growth of other media

Posted by | Dec 2, 2005 | |

The DMA (UK) is carving up the role of director of industry development and postal affairs – left vacant by the departure of David Robottom (PM October 21) – to reflect the growing importance of other media channels.

Robottom’s main role is to be split in two, with the appointment of a director of media channel development, and a head of postal affairs, who will report to them. Neither post has been filled. His compliance remit will be folded into that of director of compliance Tessa Kelly, while his environmental role will be handed to another, yet to be decided, director.

DMA chairman Charles Ping says: “The decision to split the role reflects changes in the industry. Post, although still a key area, is now just one of the many direct disciplines. These days we’ve got the likes of email, Internet, digital and search-engine marketing, and we’re looking for someone with experience of all media.”

Robottom left at the end of last month, after ten years. He has set up a consultancy with his wife, D&S Consultants, which will offer a range of advice on postal affairs, environmental issues, data and direct marketing. He has already secured a contract with Royal Mail rival TNT UK Mail and data specialist DQM Group (PM November 18).

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