Watchdog tells Royal Mail to put its stamp on value

[TrueBlueTerrier]

Watchdog tells Royal Mail to put its stamp on value

http://www.walesonline.co.uk/news/wales ... -30873404/" onclick="window.open(this.href);return false;

A WELSH consumer watchdog yesterday warned that Royal Mail cannot rely on simply pushing up prices to turn around its ailing fortunes, as the postal group bumped up the cost of some stamps by almost 40%.

Consumer Focus Wales says the firm must deliver greater efficiencies to become a stable business as well as pushing up prices.

The price of a second class stamp rose from 36p to 50p (39%), while first class stamps went up from 46p to 60p (30%) yesterday.

Rebecca Thomas, post specialist at Consumer Focus Wales, called it a “very significant increase in the price of an essential service”.

She said: “To become a stable business making a commercial rate of return will mean delivering on greater efficiencies, as much as increasing the price of postage.

“Our research suggests that for some customers there is a fine line between being willing to pay more and deciding to stop using the postal service.”

But she added that Royal Mail regulator Ofcom was right to allow the service to alter its pricing structure last month.

Ofcom had said its decision was designed to secure the continued sustainability of the universal postal service.

Ms Thomas added: “Ofcom’s decision reflects the economics of falling mail volumes and the parlous state of Royal Mail’s finances.

“Given these conditions, Consumer Focus accepts that the price control regime needs to reflect these conditions if the universal postal service is to be maintained and that means some greater freedom for Royal Mail to set prices.”

Royal Mail chief executive Moya Greene has said the new prices are “incredible value for money”, with first class stamps around half the cost of posting letters in France and Germany.

A spokeswoman said: “Royal Mail has made a loss in its core mail business, including packets, of almost £1bn over the last four financial years.”

The postal group said it provided one of the highest quality services in Europe, with its next day target of over 90% the highest of any major European country.

“The price of a stamp in the UK is lower than the average price across Europe in five of the six weight steps available for first class and second class mail.”

[Lounge Lizard]

"Consumer Focus Wales says the firm must deliver greater efficiencies to become a stable business as well as pushing up prices." but what 'greater efficiencies' would they like to see, and do they not realise that soon after privatisation the Universal Service Obligation is doomed in an area as sparsely populated as Wales ?

[Mr Rush]

How much more efficient can we be, short of becoming robots? There are people out there who still think there are two deliveries and bought Crozier's line about the Spanish Practices. Which is it: no-one sends letters anymore, or raising the price of stamps is the first sign of the apocalypse?

[BELIAL]

"Consumer Focus Wales says the firm must deliver greater efficiencies to become a stable business as well as pushing up prices." but what 'greater efficiencies' would they like to see, and do they not realise that soon after privatisation the Universal Service Obligation is doomed in an area as sparsely populated as Wales ?

Not if your postie works for 30p an hour Cheers Rebecca :dcfo

[Postman Plodd]

Typical! No comments allowed.

[BELIAL]

Not surprising ,Consumer Focus Wales = DR. DR; prof;Prof ;REV ;very representative I'm sure , bet you a pound to a penny they are Tories to a man :ncfo