Royal Mail review plan sparks SNP fears

[johnnyp]

Royal Mail review plan sparks SNP fears over universal serviceKEVIN SCHOFIELD December 18 2007
Comment | Read Comments (5)The UK Government insisted it was committed to a universal postal service yesterday as it announced a major review of the impact of competition on Royal Mail.

Business Secretary John Hutton said opening up the industry to competition two years ago had brought "considerable benefits" for customers, but said an analysis had to be carried out to ensure there had been no ill effects.

"There can be no doubt that the market has evolved, with new technologies such as e-mail and text messaging having a huge effect on the way we communicate," he said. "In the light of these market developments we are launching a review to examine the impacts of liberalisation of the UK postal services, trends in future market development and the likely impact of this on Royal Mail, alternative carriers and consumers."





However, the SNP said it had serious concerns that the review would be looking at the Universal Service Obligation (USO), which ensures that all parts of the country must have access to Post Office services.

That is especially important in Scotland's rural areas and Mike Weir MP, the SNP's business spokesman, said he wanted assurances that the commitment would not be diluted.

He said: "This is extremely worrying. Why would they review it now, unless there were proposals to amend and almost certainly weaken the current obligation.

"The USO is essential for rural areas and the Post Office has already attempted to make alterations through the concept of zonal pricing.

"Alarm bells should be ringing, and the government should give a clear commitment that there will be no attempt to undermine the USO."

A spokesman for the watchdog Postwatch Scotland said they were relaxed about the review and the government's commitment to the USO.

He said: "The government did enshrine the USO in legislation, so it is there in the statute book. The USO is a profitable part of Royal Mail's business and is a priority not just for the government but for Postwatch as well."

Yesterday's announcement was made on what is traditionally the busiest day of the year for the postal service.

It was also reported yesterday that Post Offices across the country are over-charging customers for sending letters and parcels.

A new charging system was introduced earlier this year which prices mail based on the size, rather than the weight, of the package.

Royal Mail said it did everything it can to ensure customers were charged the right amount.

[andy2007]

This is just what I've been worrying about for a while now. We've suspected for some time that the Government wanted to dilute the USO. RM have already tried to do so. Now comes the review, to pave the way for "modifying" (diluting) the USO.

Don't they realise how important the USO is?!?!?
And what's this rubbish about the USO being profitable?
The USO is heavily subsidised by the cuts in other sections. Merging sites, cutting jobs, etc.. This has got to stop!

[TrueBlueTerrier]

Don't they realise how important the USO is?!?!?
And what's this rubbish about the USO being profitable?
The USO is heavily subsidised by the cuts in other sections. Merging sites, cutting jobs, etc.. This has got to stop!

Nope they don't understand that many more things are more important than profit and the almighty .

Its is strange though that the more money you make the more money you want (with exceptions of course)