Ofcom needs to stop undermining the postal industry

[TrueBlueTerrier]

http://www.cwu.org/news/archive/ofcom-n ... ustry.html" onclick="window.open(this.href);return false;?

In response to a statement published by Ofcom today (Tuesday) which sets out the regulator's provisional findings that Royal Mail is in breach of competition law, the CWU has accused the regulator of "overstepping the mark".

Dave Ward GS Commenting on the Statement of Objections by Ofcom to Royal Mail, CWU general secretary, Dave Ward, said: "It is depressing that Ofcom seems to have learnt very little from the demise of Whistl.

"Competition for competition sake, seems more ideological than it does practical for a 21st century postal industry. It is a 20th century approach for a 21st century problem.

"Ofcom is a regulator that is increasingly over stepping the mark, and is now potentially undermining its primary objective, which is to maintain the universal service"
Dave Ward, CWU general secretary

"Their focus on competition in a declining letters market so far has shown that it risks jobs and drives down terms and conditions; as well as, further risking quality of service to the 29 million UK addresses reliant on our 6 day a week postal service.

"Ofcom is a regulator that is increasingly over stepping the mark, and is now potentially undermining its primary objective, which is to maintain the universal service."

Terry Pullinger DGSP CWU deputy general secretary (postal), Terry Pullinger, added: "Ofcom's number one job is to protect the future of the USO, and at a time when the number of letters being sent is declining year-on-year, the idea that you would further weaken an already unstable postal market both beggars belief and is a contradiction of the Ofcom role.

"This debate and Ofcom's analysis of it, is increasingly lacking intelligent clarity on Ofcom's part, and the inferior failed service offered by Whistl may be Ofcom's idea of a postal service, but I don't believe it meets the expectations of the people we serve.

"The postal industry is changing fast and adapting to new technology, but the response of the regulator in a declining market can't be simply to hold Royal Mail back from being a progressive, financially sound and successful business that responds to the changing dynamics of the industry, whilst also delivering the USO.

"There is a growing perception amongst our members that Ofcom is persuing a dangerous personal vendetta against Royal Mail instead of focusing on its duty of care over the USO."

Read Royal Mail's response for further information

[TrueBlueTerrier]

http://www.royalmailgroup.com/royal-mai ... -statement" onclick="window.open(this.href);return false;

Royal Mail confirms that it has received today a Statement of Objections setting out Ofcom's provisional, preliminary findings in relation to its investigation into the terms on which Royal Mail proposed to offer access to letter delivery services, alleging a potential distortion of competition. The investigation was launched in February 2014 following a complaint brought by TNT Post UK (now Whistl) about certain proposed changes to Royal Mail’s Access contracts.

Royal Mail takes its compliance obligations very seriously and is disappointed by Ofcom’s announcement. The Company considers that the pricing changes proposed in 2014 were fully compliant with competition law. They were an important part of Royal Mail’s commercial response to both changing market conditions and to Ofcom's statements in its March 2013 guidance document on end-to-end competition in the postal sector1. Under the terms of our access contracts, these pricing proposals were suspended following the opening of Ofcom’s investigation. Accordingly the pricing proposals were never implemented and were withdrawn altogether in March 2015.

Royal Mail is considering carefully Ofcom's provisional findings. It will submit a robust defence to Ofcom in due course. Royal Mail has cooperated fully with Ofcom throughout its investigation to date and will continue to do so.

ENDS

For further information please contact:

Media Relations
Mish Tullar
Phone: 07423 524154
Email: mish.tullar@royalmail.com

Investor Relations
Catherine Nash
Phone: 020 7449 8183
Email: investorrelations@royalmail.com

Company Secretariat
Claudine O’Connor
Phone: 020 7449 8163
Email: cosec@royalmail.com

Notes
Access is where Royal Mail accepts mail that has been partially sorted by large customers and other postal operators, at our Mail Centre nearest the recipient’s address. For an agreed price we then deliver that mail to the recipient.

1 Ofcom: End-to-end competition in the postal sector: Final guidance on Ofcom’s approach to assessing the impact on the universal postal service – (27 March 2013):
“Royal Mail could change its commercial strategy (i.e. pricing and terms). In particular, under the current regulatory regime Royal Mail has the ability to change the prices it charges access operators. This includes the ability to change how access prices are set for different geographic areas (currently the “zonal access pricing regime”) to ensure they are reflective of relevant costs. This is particularly important given that in general an end-to-end competitor will still need to rely on access to Royal Mail’s network to offer its customers full coverage of all addresses in the UK. Royal Mail’s flexibility in setting zonal access prices can enable it to ensure that end-to-end competitors pay a cost reflective price for Royal Mail delivering mail in the areas where it has chosen not to enter (which may be the harder to reach, and hence less profitable parts of the UK). In this way, Royal Mail may be able to mitigate the impact on the universal service from an entrant ‘cherry picking’ by delivering in lower cost areas and handing over the rest of the mail to Royal Mail to deliver. In addition, Royal Mail has the flexibility to negotiate changes to its contracts both with its retail and access customers (subject to competition law and the existing ex ante regulatory conditions on access).”

[wacko74]

These pr**s really do seem to have some personal grudge against RM and I'm sure they're going beyond their remit as a regulator.

BT recently announced 7% price increases across the board for all the services it provides. What was Ofcoms response?...Nothing at all, not a word, imagine if RM did the same? Ofcom would be screaming blue murder about it.

[redneck]

Under a Tory and previously Tory-like government the regulator has no choice but to follow free market philosophy and create the conditions for competition and driving down of terms and conditions. They will have been extremely disappointed with the collapse of Whistl deliveries and are now looking to set up the conditions for another competitor to take on the challenge of driving us out of business.

[bogstandard]

anyone noticed how managers especially senior ones T's and C's only ever improve in a "competetive" market.!!!!!!!!!!!!!!!!!!!