Postal reform won‘t deliver a truly competitive market
Comment on UK postal reform by John Blundell, director general of the Institute of Economic Affairs.
Read MoreTag: UK
DX hopes ‘take-all’ proves a winner
DX Services, the business mail group, said it was well- positioned to take advantage of full deregulation of the mail sector as it reported flat preliminary results for its first year since demerging from Hays, the recruitment company. The company expected to launch in November a “take-all” service that will collect all mail. At present, users have to post items to non-business customers separately, via the Royal Mail. There was little explanation for the resignation of Peter Brougham, chief executive, in mid-August but it was understood that some shareholders had been unhappy about the group’s strategy.
Read MoreDMA slams ‘farcical’ UK postal price controls
The DMA (UK) has hit out at Postcomm’s proposed four-year price control scheme for Royal Mail, branding the regulator’s plan to measure quality of service “farcical”. The trade body, which also questions why mailing clients should be forced to pay for Royal Mail’s pension deficit, has submitted its response to Postcomm’s consultation. David Robottom, director of postal affairs and industry development at the DMA, explains: “Price control is a complex issue that needs to be fully understood. We believe Postcomm must be wary of customer expectations of lower prices once the market opens, as they aren’t likely to change much. The plan to group products for quality of service is farcical.
“Royal Mail’s pension deficit is set to be met by users under the consultation, and we believe this is wrong. The responsibility should fall on Royal Mail and the Government, not users.”
Read MorePostal changes will hit rural communities, warns UK Royal Mail boss
Rural communities across Scotland will suffer if proposed changes to postal services go ahead, the chief executive of the Royal Mail warned yesterday. Adam Crozier also said job cuts at the Royal Mail are inevitable as the organisation strives for greater efficiency. But he insisted there are no plans to close any more post offices north of the border. Mr Crozier was speaking as the Royal Mail unveiled findings of a study highlighting its impact on Scotland’s economy. His comments will re-ignite concerns that proposed changes to UK mail delivery services will lead to an inferior service for the Highlands and Islands.
Read MoreUK DX reports fall in profit
DX Services PLC reported a fall in profit in its full-year results but said it is well-placed to grow when the mail market is fully deregulated next year. The company, which was sold by former parent company Hays PLC in 2004, said
pretax profit before exceptional items and goodwill amortisation in the year to
June 30 fell to 26.6 mln stg from 32.7 mln a year earlier. DX Services chairman John Maxwell said in a statement: “This has been a year of substantial change for DX. With the onset of full deregulation in January 2006, and the introduction of our ‘take all’ mail services to increase market penetration, DX is well positioned for further growth.”
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