MP's warning over Royal Mail reforms

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PLANNED reforms of the Royal Mail could lead to soaring prices for rural parcel deliveries, or even none at all to the Highlands and Islands, according to the SNP.

There has been a spate of complaints in the run-up to Christmas about private delivery contractors refusing to deliver to remote addresses or charging heavily for this.

MP Mike Weir says the Royal Mail could do the same and has raised concerns with Ofcom.

Part of the proposal is to give Royal Mail freedom to determine contracts with large firms.

Mr Weir said: "Up to now we have always had a one-price-anywhere policy, which ensured we did not have the situation that has developed in the parcels market where some companies will not deliver to the Highlands and Islands.

"Under the Ofcom proposals, Royal Mail will be able to negotiate a contract directly with other companies, but it does appear that it is the intention of Ofcom such contracts should be cost-reflective.

"Ofcom's attitude appears to be that Royal Mail could not raise the costs too high or large companies may simply go fully electronic and use email and the internet. That does not take account of the fact that the postal service serves both senders and recipients and many recipients, especially in more remote areas, do not have access to fast broadband."