MacNeil condemns Ofcom Royal Mail decision

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Isles MP Angus MacNeil has condemned the decision by the regulator Ofcom to take no action to extend and therefore protect the Universal Service Obligation (USO), which ensures that only the Royal Mail’s postal services cost the same in every part of the UK.

In their announcement, Ofcom said it saw no reason to overhaul existing rules and press Royal Mail’s rivals to take on part of the USO.

Ofcom have also stated that ‘competition is likely to provide Royal Mail with a further incentive to become more efficient’.

This is despite the fact that Royal Mail must deliver to remote areas and islands, while their competitors with no such obligation can cherry pick the most lucrative urban mail services.

Angus MacNeil MP is backing the efforts of his SNP parliamentary colleague Mike Weir MP, the party’s spokesperson on Postal Services.

Angus MacNeil MP said: “The SNP has raised concerns about the undermining of Royal Mail and the likely impact on the Universal Service which is critical for our islands and it must be protected.

“We also have to see the end of any efforts by Royal Mail management, of the now privatised company, to attempt to undermine the Universal Service Obligation. Royal Mail has been privatised for over a year now, and already there have been two efforts by management to undermine the Universal Service Obligation.

“Along with SNP colleagues I voted against the privatisation of Royal Mail where we again raised these concerns and the subsequent shambles of the sell-off saw taxpayers lose billions through the undervaluing of Royal Mail. It is putting delivery to the islands and wider rural Scotland under threat.

“Given that Royal Mail, the Communication Workers Union, Postmasters and many, many islanders have backed campaigns on Royal Mail and the Universal Service it is incredible that Ofcom do not consider there is a growing threat to the Universal Service Obligation and they are completely out of touch with public opinion on this issue.

“It is unbelievable that the regulator is saying ‘competition is likely to provide Royal Mail with a further incentive to become more efficient’ when by the same token it provides carte blanche to their competitors to cream off profits from the best parts of the mail sector leaving hard working Royal Mail staff to pick up the pieces.”