CWU backs Royal Mail price increase

[TrueBlueTerrier]

http://www.cwu.org/news/archive/cwu-bac ... rease.html" onclick="window.open(this.href);return false;

CWU today (Tuesday) backs Royal Mail's bid to increase prices on business mail products in a move which the union believes will "right some of the wrongs of regulation".

Royal Mail has approached Postcomm, which is set to be subsumed into communications regulator Ofcom if the government's Postal Services Bill is passed, with the request in order to generate revenue of up to £100 million. This extra increase would not apply to First and Second Class stamps or to any other consumer and small business mail, focusing instead on mail products including "access" mail, used primarily by large business customers.

0Dave Ward, CWU deputy general secretary, said: "Unfair regulation of the postal market has been strangling Royal Mail's revenues for years. The financial problems which Royal Mail faces would be considerably improved by levelling the playing field when it comes to delivery of bulk mail.

"Royal Mail has essentially been subsidising its own competitors which doesn't seem right in what's meant to be a free market. We fully back Royal Mail in this move which we believe will help to right some of the wrongs of regulation. But we believe they need to go further to pursue the complete removal of the current access regime. Current competition rules mean Royal Mail has effectively been set up to fail."

Commenting on the wider implications of regulation, Dave explained: "It's important that people realise that mail volumes are only part of the picture affecting the postal industry. The impact of unfair regulation on the ability of Royal Mail to get a fair price for delivering 'final mile' mail is massive. There are many issues at play in this industry which is why we want the government to look at all the facts and not rush headlong into a privatisation model which we believe is unnecessary and damaging to services."

0Commenting on the move, Moya Greene, Royal Mail Group's Chief Executive, said: "What we are asking for is the chance once-and-for-all to charge a fair price to other companies who use our network to carry mail and to end what is, in effect, the very substantial built-in subsidy which our rivals have enjoyed for years."

According to company reports, Royal Mail made a £157 million operating loss after exceptional items last financial year, 2009-10, on "access" mail - the letters, packets and parcels collected by its rivals but delivered by Royal Mail's postmen and women. The loss amounted to an average of 2.5p per item for the 6.4 billion pieces of "access" mail delivered by Royal Mail. More than one in three of all letters delivered by Royal Mail is an "access" item of mail.

If Postcomm decides to consider Royal Mail's price application, there would be a public consultation and if the regulator then approved the application, the additional price rises would come into effect in April 2011.

[Wessex]

Absolutely brilliant that the Union are starting to move on DSA
I notice that there will be a public consultation.I am a member of the public and would like to have my say ,does anybody know if I as an individual could have access to this consultation process (last para. of article )

[kimski1976]

it just piss's me off that we deliver our competitors mail. if we charge 36p for a 1st class stamp for customers, then everyone should pay that per first class letter. who ever decided that we have to deliver our competitors mail is stupid.

[TrueBlueTerrier]

Absolutely brilliant that the Union are starting to move on DSA
I notice that there will be a public consultation.I am a member of the public and would like to have my say ,does anybody know if I as an individual could have access to this consultation process (last para. of article )

http://www.psc.gov.uk/consultations" onclick="window.open(this.href);return false;

We consider all consultation responses very carefully; these can include the views of large and small companies, the postal industry, consumer and community groups, and individuals. Consultations usually take between 30 and 90 days, although if we have to take account of new information and ideas we may extend the process. When the consultation is complete, we produce a decision document and publish the responses to the consultation on our website.

http://www.psc.gov.uk/consultations/process" onclick="window.open(this.href);return false;

Consultation process
We organise road shows, workshops, meetings and seminars to let you know what we are doing, and to hear your views on what we’re planning for the future. The information and feedback we get from these sessions is extremely valuable and shapes our thinking when preparing proposals for formal written consultation.

We publish the dates of our formal written consultations on the website alongside the relevant documents.

When a consultation opens, we accept responses by post, email or fax. Specific details are included in each consultation document.

We decide the length of the consultation on a case by case basis according to the complexity and potential impact of the proposals, and the number and type of people who might be affected by them. For instance, if all likely respondents are familiar with the project and have been briefed on the issues it raises, then a long consultation might be unnecessary.

Consultations on significant changes, such as a proposed new regulatory framework, might last for 90 days. Routine consultations likely to have a minimal impact on the market, or where a decision is needed quickly for commercial or regulatory reasons, will usually take 30 days.

All consultation responses are carefully considered and, as we sometimes have to take account of new information and ideas, we may extend the process so that other interested parties can give their views.

We then produce a decision document, which contains a summary of the responses received, and publish all non-confidential responses to the consultation on our website.

[worktotime]

it just piss's me off that we deliver our competitors mail. if we charge 36p for a 1st class stamp for customers, then everyone should pay that per first class letter. who ever decided that we have to deliver our competitors mail is stupid.

its about bloody time tnt,ukmail and every other cowboy firm was charge more for us to deliver there items , why should we lose money for this , well done r/m and cwu.

[Wessex]

it just piss's me off that we deliver our competitors mail. if we charge 36p for a 1st class stamp for customers, then everyone should pay that per first class letter. who ever decided that we have to deliver our competitors mail is stupid.

its about bloody time tnt,ukmail and every other cowboy firm was charge more for us to deliver there items , why should we lose money for this , well done r/m and cwu.

I'm not sure RM's motives are altruistic after all wasn't it RM who agreed to the loss -making access prices .

[Judgee]

Better late than never I guess.... although it can and probably will still be rejected!