Bulk mailers brace themselves for Royal Mail's 40% increase

[TrueBlueTerrier]

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BUSINESSES that rely on the post to export goods to the UK are to be hit hard after Royal Mail confirmed it was hiking its charges for delivering Bailiwick post by 40%.

Guernsey Post announced yesterday that it had failed in its attempts to persuade Royal Mail to reconsider the increase for processing and delivering mail, which will come into force during the next two years.

It is feared that the move, which equates to an £8m. rise in charges based on current postal volumes, could have far-reaching implications for the island’s export industry.

About 60% of Guernsey Post’s business comes through bulk mail deliveries for companies such as Healthspan, HMV and Moonpig.

The States-owned utility had been in negotiation with Royal Mail since July. And Guernsey Post said, despite considerable pressure, Royal Mail had been unwilling to moderate materially its pricing demands and had insisted the increase was needed to reflect the cost of handling mail from the Bailiwick.

‘Royal Mail has left us with no choice but to accept these charges and, as a result, apply to the regulator for an increase in prices,’ said Guernsey Post chief executive Gordon Steele

[Lounge Lizard]

"Royal Mail had insisted the increase was needed to reflect the cost of handling mail from the Bailiwick", Right, so Royal Mail will now likewise increase the charge for DSA mail by 40% will it ?