NEWS ARTICLES ABOUT ROYAL MAIL FAILING CUSTOMERS

[TrueBlueTerrier]

This thread will be about stories that have come about because of the review in Liberisation of Royal Mail.

Please discuss on the old thread at http://www.royalmailchat.co.uk/forum/vi ... hp?t=11044

[TrueBlueTerrier]

http://www.inthenews.co.uk/money/busine ... 221631.htm

Opening up the postal market to competition has seen "no significant benefit" for consumers and businesses, an independent report has found.

The findings are part of a review of the UK postal sector commissioned by the government, whose full report is due this summer.

Today's report found that the liberalisation had led to a "substantial threat" to the financial stability of the Royal Mail and the universal service.

In 2006 other operators were allowed to collect and deliver mail, ending the Royal Mail's 350-year monopoly.

As a result of the changes, the independent review said that the "status quo is not tenable".

"The policies needed to establish a sustainable future will be the focus of our report later this year," the BBC quotes the report as sayin

[TrueBlueTerrier]

The liberalisation of the UK postal service has produced "no significant benefits" for small businesses, a governmental review of the sector has concluded.

The review, carried out by the Department for Business, Enterprise and Regulatory Reform (BERR), states that while large companies have "seen clear benefits from liberalisation" in terms of "choice, lower prices and more assurance about the quality of the mail service", small businesses have not gained from increased competition.

"Where big businesses have benefitted from competition created in the bulk mail sector, small firms within communities across the UK are losing out," said Phil McCabe from the Forum of Private Business (FPB). "A reduced service means vital lines of communication are being disrupted, and that costs businesses money."

The report also notes a "substantial threat" to the Royal Mail's financial security, and that the "status quo is not tenable." It concludes that BERR needs "to establish how best to create the incentives for Royal Mail to moderate its operation, providing a stable financial future."

In March, the Federation of Small Businesses (FSB) called on politicians to "take every possible step to retain the post office network". FSB research revealed that 82% of small businesses think the loss of their local post office would have a significant impact on their business, in some cases leading to closure.

McCabe echoed these sentiments, stressing the importance of the Royal Mail's service for small firms: "For many small businesses, particularly those in rural areas, the universal delivery and collection service that has traditionally been provided by the Post Office is a lifeline, and losing it would be devastating."

However, Chris Hannant, head of policy at the British Chambers of Commerce said that the only way the Royal Mail can improve its service and win back lost business, is by "pushing ahead with modernisation."

"Firms want an efficient, value-for-money and reliable service, which Royal Mail must be able to deliver without the fear of more industrial action," he added.

[TrueBlueTerrier]

http://www.theherald.co.uk/news/other/d ... nefits.php



Opening up the UK postal service to competition has produced "no significant benefits" for households and small business and leaves Royal Mail facing "radical changes", according to an official review.

The independent panel set up by the UK Government also found there was a "substantial threat" to the financial stability of the Royal Mail and the universal postal service - the collection and delivery to all UK addresses.

The initial findings of the report, due to be completed by the end of the year, comes two years after Royal Mail's 350-year monopoly was brought to an end. It also comes amid the Post Office's plans to close 2500 branches in the UK; dozens across greater Glasgow and Argyll and Bute have been earmarked for closure or are already shut.
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The SNP, which claims the closures would be avoidable if Holyrood controlled the postal service, has described the policy of liberalisation as "an unmitigated disaster" and warned businesses, particularly in rural Scotland, are at the mercy of Royal Mail.

The chairman of the inquiry panel, Richard Hooper, said Royal Mail and the postal industry were at a "crossroads" and there was now a "strong case" for taking action to make sure the company had a sustainable future.

He said: "As we see rapid changes in the way people communicate, the way in which the postal sector is regulated will also need to change, and we need to establish how best to create the incentives for Royal Mail to modernise its operation, providing a stable future."

The report states: "We have come to the conclusion that the status quo is not tenable. It will not deliver our shared vision for the postal sector."

According to the report the postal market is changing and faces an "uncertain future", especially as firms look to cut costs in the face of challenging economic conditions.

While it claims homes and small firms have not gained from competition, it said large companies have seen "clear benefits", including "choice, lower prices and more assurance about the quality of the mail service".

Mike Weir, Angus MP and SNP postal spokesman, who gave evidence at the review, said: "There is no satisfaction in saying I told you so, but these interim conclusions almost echo word for word the warnings we gave the review on the impact of liberalisation.

"The universal service obligation is vital for Scotland, particularly for small businesses in rural areas."

Westminster business secretary John Hutton said: "The initial findings from the review team paint a stark picture of the huge changes in the postal market. They are a wake-up call to anyone who believes it can be business as usual."

A Royal Mail spokesman said: "The report identifies the ways in which the open postal market is clearly not working and Royal Mail looks forward to submitting its further views on the changes that are required in the market."

[TrueBlueTerrier]

Hated post office reforms have failed the public and threaten future of Royal Mail, says government report

Link to Article

Royal Mail's ability to deliver letters for the same price to every home in Britain is under "substantial threat", a report warned yesterday.

It said the 168-year-old ' universal service' cannot continue unless radical changes are made at the crumbling company.

The report, from a team of experts commissioned by the Government, is the most serious alert yet about the service.

Since the Penny Black was introduced in 1840, everybody has been able to pay the same amount to post a letter, from the Cornish coast to the Scottish Highlands.

But the report says: "There is now a substantial threat to Royal Mail's financial stability and, therefore, the universal service.

"We have come to the conclusion that the status quo is not tenable."

The threat is largely blamed on the decision to open up Royal Mail to competition from January 2006.

For decades, it had used profits from business mail to subsidise "stamped" mail.

But competition has attacked Royal Mail's business more savagely than anticipated.

About one in five of the 83million letters sent every year is now handled by one of its 19 rivals, which include TNT, Deutsche Post and UK Mail. As a result, Royal Mail is now losing about 6p for every first or second class letter sent.

The 36-page report does not make any suggestions about how to solve the crisis at Royal Mail or how to preserve the universal service, which is enshrined in law.

It is only the three-man team's 'initial response' to the evidence it has received since the review was commissioned in December.

But Business Secretary John Hutton issued a powerfully worded statement, giving the strongest suggestion that "radical change" will take place at Royal Mail.

He said: "The findings are a wake-up call to anyone who believes it can be business as usual. It can't."

One option could be to pay other firms to deliver to remote parts of the UK to cut the huge cost to Royal Mail of delivering to every corner of the country.

The independent report pours scorn on the decision to open up Royal Mail to competition, which has fuelled so many of its current problems. It said liberalisation has resulted in "no significant benefits" for any domestic customers or small business users.

In fact, a number of deeply unpopular changes have been introduced over the last two years, it said.

The price of a first-class stamp has gone up from 30p to 36p.

A new pricing system which means that customers now have to consider the shape of a posted item as well as its weight has made life "more difficult".

For many, the most painful change to postal services is the Government's decision to axe 2,500 Post Offices.

Labour MP John McDonnell said: "This report confirms what we said from the beginning - that liberalisation would only benefit big business and do nothing for the public or the dedicated workers of Royal Mail.

"The Government must decide whose side it is on: is it on the side of the public and the workforce or on the side of big business?"

A Royal Mail spokesman said: "We welcome this report and Royal Mail absolutely agrees with the report's conclusion that the one-price-goes-anywhere universal service to the UK's 28million addresses is at the heart of a successful postal service."

Andy Frewin, of the postal watchdog, Postwatch, said: "We will fight tooth and nail to preserve the universal service."

[TrueBlueTerrier]

http://ukpress.google.com/article/ALeqM ... ScilpT-6eQ

The Royal Mail faces "radical" changes after an official review found that opening up the postal market to competition has seen no significant benefit for consumers and smaller businesses.

An independent panel set up by the Government also found there was a "substantial threat" to the financial stability of the Royal Mail and the universal postal service.

"We have come to the conclusion, based on evidence submitted so far, that the status quo is not tenable. It will not deliver our shared vision for the postal sector," said the report. The panel's chairman, Richard Hooper, said the Royal Mail and the postal industry were at a "crossroads", and there was now a "strong case" for taking action to make sure the company had a sustainable future.

"As we see rapid changes in the way people communicate, the way in which the postal sector is regulated will also need to change, and we need to establish how best to create the incentives for Royal Mail to modernise its operation, providing a stable, financial future."

The report said the postal market was changing and faced an "uncertain future", especially as firms looked to cut costs in the face of challenging economic conditions.

In the past two years, competition in the collection, sorting and transportation of bulk mail from businesses has expanded rapidly and much more quickly than was anticipated, the report found. But there was virtually no competition to the Royal Mail in the delivery of letters despite a belief that some rival firms could invest in deliveries, perhaps twice a week, in urban centres.

"Others point out significant barriers to entry. We will need to consider this further, along with the risk that more extensive competition could make the universal service unsustainable."

Large firms had seen clear benefits from liberalisation, including more choice, lower prices and more assurance about the quality of the mail service, the report said. But there had been no significant benefits for consumers and smaller businesses, who believed that Royal Mail's service offered good value for money as it stood.

The report added: "But they have no choice in provider and are paying higher stamp prices. The introduction of a pricing methodology based on weight and dimensions makes life more difficult."

Abolishing Sunday collections and the move to a single daily delivery were more visible to consumers and small firms and were seen as a reduction in services. The Royal Mail faced "many challenges", but modernising its services will be more difficult as volumes fall.

[TrueBlueTerrier]

Nationwide post service could end as Royal Mail faces finance crisis

http://business.timesonline.co.uk/tol/b ... 882983.ece

The Royal Mail could become incapable of maintaining its commitment to delivering a UK-wide price structure for its letter and parcel service, says a government-commissioned review.

At the same time, competition in postal services has delivered no benefits for domestic consumers and small businesses, according to the review set up to advise John Hutton, the Business Secretary.

Details of severe financial pressure facing the organisation have emerged just a year after it received a £3.9 billion government rescue package. Royal Mail has a £3.4 billion pension deficit and last year its profits fell by a third to £223 million.

The review, which will make final recommendations later in the year, said that Royal Mail’s finances are so precarious that they could derail its obligation to the universal service, which allows stamped mail to go anywhere in the country for the same price.

t said: “There is now a substantial threat to Royal Mail’s financial stability and, therefore, the universal service. We have come to the conclusion, based on evidence submitted so far, that the status quo is not tenable.

There is a strong case for action.â€

[TrueBlueTerrier]

Postcomm welcomes emerging views from the Government review of the postal services market

Out of touch ?

6 May 2008

Postcomm, the independent regulator for postal services, today welcomed the emerging views of the independent review panel on the UK postal services market.

Postcomm chairman, Nigel Stapleton said: “We will be considering the emerging views of the panel and will use them to inform our second submission.â€

[TrueBlueTerrier]

Competition has brought no improvement to postal customers - CWU welcomes announcement

http://www.cwu.org.uk/news.asp?step=3&NID=1987

The Communication Workers Union has welcomed the announcement by the government review team that "liberalisation of the UK postal service has produced no significant benefit for either households or small business." This statement underlines what all industry experts, including the CWU, have already said.



CWU deputy general secretary Dave Ward said:



"This report is just an analysis of the problem, but the key now for the review team and for the government is to finally get the policy on Royal Mail right.

Currently, the policy and funding of Royal Mail makes its future untenable and damages the service to customers, the terms and conditions of workers in the industry and the future of the universal service.

This means that Royal Mail is preoccupied with managing decline rather than meeting customers� requirements."



The CWU has submitted a report to the government review team today, reiterating that a solution must be found that gives the company a more sound financial footing, a less obtrusive regulatory frame work and clearer direction from the government on the company�s social obligations.



The public wants an innovative, publicly owned postal service that provides customers with the service that they want.

[TrueBlueTerrier]

http://www.ukip.org/ukip/index.php?opti ... &Itemid=57

A review commissioned by the government on the UK postal service sector shows that EU policy is real reason for the decline in Royal Mail and lies behind the closure of thousands of post offices.

Competition brought about by EU regulation has seen the company losing millions of pounds while small businesses and domestic customers have seen no significant benefit, the report says.

David Bland, former South East chairman of Post Watch, said the report "contained no surprises."

He added: "It says the obvious – that the whole change and downturn in Royal Mail's fortunes is driven by the EU and there is no prospect of EU policy changing."

UK Independence Party leader Nigel Farage said: "It's no coincidence that since the postal market was opened up to competition the Royal Mail has lost money for the first time.

"It has been left with the unprofitable parts of the business, such as domestic post, ensuring collections and the 'final mile' while other businesses have creamed off the profitable business post.

"It's no wonder that post offices up and down the country are closing and Royal Mail has had to cut so many services: it really has been left with the rough end of the deal."

* EU "liberalisation" came into force on 1 January 2006. In 2006-2007 Royal Mail reported losses of £29 million for the first time.
* 60% of the costs of Royal Mail are in the “final mileâ€

[TrueBlueTerrier]

http://www.managementtoday.co.uk/rss/article/807222/

Big business is the surprise benefactor of competition in the postal market, according to a new report.

The end of the Royal Mail’s 350-year monopoly in 2006 has seen a boom in competition in the bulk mail business, with a consequent lowering of prices and (arguably) improvement in service offered to large organisations. That sounds suspiciously like good news for a change.

But remember, this is the post we’re talking about. Big firms may be better off but they are the only ones with anything to smile about. The report - from DBERR, as we must now call the DTI – has concluded that neither small businesses nor private individuals have seen any improvement from the liberalisation of the market. Which comes as no surprise to any of us – it’s hard to interpret later deliveries, fewer collections and local post offices closing in their hundreds as anything but bad news from a customer service perspective.
So bad have things got, says the report – whose full findings are due later this year – that the current situation is ‘not tenable’ as it threatens the financial stability of the Royal Mail and thus the viability of the ‘universal service’. That’s delivery to and collection from every address in the UK, no matter how remote or Rottweiler-ridden, as currently provided by the Royal Mail.

Given that this is all coming form a government-appointed panel (the same government which opened up the market in the first place, remember) it is pretty strong stuff. But surely hardly surprising? Given that the very-expensive-to-provide universal service has only historically been maintained through cross-subsidy from the Royal Mail’s lucrative monopoly on business post, it was pretty much inevitable that things would start to get strained when the introduction of competition in bulk mail drove prices and profits down.

The report also notes disapprovingly the absence of competition faced by the Royal Mail over the ‘last mile’ - the final stage of delivery. Of course this is true, but you don’t have to be a Nobel-winning economist to figure out why. Delivering thank-you letters to Aunt Flo and postal orders to little Jimmy is not a very attractive or profitable business to be in, so commercial operators are quite happy to leave that to the Royal Mail.

Here at MT we wouldn’t like anyone to get the idea that we are apologists for the Royal Mail, an organisation whose manifest problems we have examined at length and with some relish here in the past. But the kind of muddled official thinking that this report is indicative of certainly doesn’t help. Either the mail is a public service to be maintained, if necessary through subsidy, or it is not. In which case it should be allowed to sink or swim on a fully commercial footing. Trying to force it to be both at the same time is, and will remain, a recipe for disaster.

[TrueBlueTerrier]

http://www.telegraph.co.uk/news/1932499 ... arket.html

Opening up the postal market to competition has undermined the future of the Royal Mail and provided “no significant benefitâ€