Devon rural post service under threat

[TrueBlueTerrier]

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Royal Mail has warned that regular postal deliveries to Devon’s rural communities could be a thing of the past.

The recently privatised company has said that the universal services obligation (USO) which requires it to deliver to any address in the UK six days a week could become unsustainable due to industry competition.

It has called on post and communications regulator, Ofcom, to bring forward a review of the direct delivery market in order to determine the regulatory changes that would be needed to safeguard the nationwide service .

In its submission, Royal Mail The said direct deliveries from competitors undermined the universal service through “cherry picking”, adding that other firms were not bound by the same stringent regulatory requirements it faced.

Rival companies, such as TNT, have begun setting up urban postal services in city centres, which the company said is eating in to the income that it uses to subsidise its more expensive rural deliveries.

It said that its revenue could be cut by over £200 million in 2017/18 because of competition from TNT alone and has called for a cap on the level of competition allowed in order to protect the universal service.

An Ofcom spokesman said the organisation would consider the report, but evidence did not suggest the service is currently under threat.

He added: “We would assess any emerging threat to the service quickly, in the interests of postal users.”

Royal Mail was privatised in September of last year, with the guarantee of USO forming part of the settlement.

Gary Streeter, MP for South West Devon, said that a move to end consistent service to rural communities would be “unacceptable”.

“If the company has any serious problems it should sit down with the Government to find a solution,” he said. “People living in rural areas are just as important as those in cities and Royal Mail must continue their service to them.”

[datasaint]

“If the company has any serious problems it should sit down with the Government to find a solution,” he said. “People living in rural areas are just as important as those in cities and Royal Mail must continue their service to them.”

Why is the onus put on RM to find a solution? Make TNT do rurals as well if they want to deliver post. Even if they can't do it make them pay a levy to RM for fulfilling it.

[oscar]

Tnt won't deliver to rurals..why should they? There hands are not bound by a regulator.. this uso will collapse very shortly but I cant remember many postman fighting against privitisation ... they accepted it

[datasaint]

Tnt won't deliver to rurals..why should they? There hands are not bound by a regulator.. this uso will collapse very shortly but I cant remember many postman fighting against privitisation ... they accepted it

If they want to operate as a mail carrier then they should be held to the same standards as RM.

I agree the USO will not be sustainable for very much longer if this continues.

[oscar]

Why though. . Not for an argument. ..but you can offer what services suits you the uso was designed round a publicly owned mail business...now its not

[iceman1277]

Why though. . Not for an argument. ..but you can offer what services suits you the uso was designed round a publicly owned mail business...now its not

TNT should delivery 6 days aweek like we have to if they want to delivery the mail not cherry pick.

[oscar]

Starbucks open coffee shops in places they know they'll make money..so do costa its competition..I say again the uso was designed under a publicly owned royal mail now its private ...royal mail will falter on the uso to compete

[borders]

loving Gary Streeter's comment , do these politicians really live in the real world , unbelievable !! as a private company run for the benefit of the shareholders why would / should a company do something that is going to be unprofitable !!!????

[blackadder]

thing is like it or lumb it that r.m. is now a private company that wants a profit every year. now if i lord blackadder head of r.m. i prob get rid of 6 day deliverys to rural as they cost a fortune. twice a week is more likly, the big towns and citys be fine. thats before i see how many more full time perm staff i can off load, gota make a profit for my shareholders aint i.