Cessation of Sunday and Bank Holiday Collections - Changes to Collection Plates

Part of the agreement given by Postcomm to Royal Mail’s request to stop Sunday and Bank Holiday collections was for Royal Mail to amend the information on the collection plates.

Postwatch visited 770 post boxes to see if collection plates no longer referred to Sunday and Bank Holiday collections, but found that none had been changed.

Postwatch was advised by Royal Mail that the removal of all references to Sunday and Bank Holiday collections to its collection plates will be completed by 25 February.

Between 17 March and 4 April Postwatch visited 653 post boxes and found that only 85% of collection plates had been changed. This is a disappointing result as it is now over 6 months since Postcomm approved Royal Mail’s application and Postwatch believes that all post boxes should have had their collection plates changed.

The results of our survey have been passed to Postcomm asking it to contact Royal Mail as it is in apparent breach of the conditions set by Postcomm when agreeing this application.

Please report any post box that has not had its collection plate changed to Royal Mail customer services on 08457 740 740 quoting the post box number which is located in the bottom left hand corner of the collection plate. Royal Mail customer services should provide customers with a reference number so that it can be pursued if the collection plate is still not changed.

Postwatchs evidence to the Independent Review of the Postal Market and USO research

Postwatch has submitted to the Independent Review Panel answers to forty questions principally relating to the provision of the universal postal service (UPS). Postwatch also submitted and published the research it commissioned about the value of the universal service to customers.

Postwatch’s research is wide ranging and assesses whether the current universal service fulfils customer needs and expectations, the sustainability of the universal service in the light of market changes; and alternative mechanisms for funding the universal service.

A summary of the research into the User needs of the Universal Service can be found here. The main points from the customer perspective being:

• Next day delivery, reliability (in terms of published performance targets being met) and deliveries to the door are valued;

• The frequency of collections should be included in the UPS but no strong preference for more than 5 days a week;

• Strong support for one price goes everywhere postage and recognition that current postage prices are affordable; and

• Homes but not all businesses value 6 deliveries a week.

Suspension of Bulk Mail Compensation and the C factor adjustment

On 14 May, Postcomm held an open meeting ‘After the Postal Strikes’ to hear evidence on Royal Mail’s application for suspension of the ‘c factor’ adjustment (restrictions on the level by which Royal Mail can raise prices if service quality is not met) and the bulk mail compensation scheme, following industrial action last year.

Postwatch presented a number of areas in the application which Postcomm should investigate further, including whether:

- the whole of quarter 3 (from 3 Sept to 2 Dec) should be included in the application.
- recovery periods, following industrial action, within the application are reasonable.
- claims for unofficial industrial action should be included.

Postcomm have invited further written evidence by any interested parties on the impact of industrial action and Royal Mail’s application to be submitted by the end of May.

You can see Royal Mail’s application HERE.

Postwatch SME Research

Postwatch has today, 14th May, published its research into the current and future needs of SMEs. The research covers key areas in the postal market, namely an in-depth analysis of the current and future needs of small & medium sized enterprises (SMEs). The themes covered include:

• The current patterns of mail use;
  
• Attitudes towards current collection and delivery times as well as other services used, including Post Offices;
  
• Future trends and;
  
• Reactions and attitudes towards new services concepts and evolving technology.
  

This research will inform Postwatch’s policy in the coming months, specifically its responses to the Independent Review of the Postal Market and will form part of our legacy as Postwatch’s work is merged into the new National Consumer Council on 1 October.

The full report is also available for downloading on
Postwatch's website.

Postwatch has today, 14th May, published its research into the current and future needs of SMEs. The research covers key areas in the postal market, namely an in-depth analysis of the current and future needs of small & medium sized enterprises (SMEs). The themes covered include:

• The current patterns of mail use;
  
• Attitudes towards current collection and delivery times as well as other services used, including Post Offices;
  
• Future trends and;
  
• Reactions and attitudes towards new services concepts and evolving technology.
  

This research will inform Postwatch’s policy in the coming months, specifically its responses to the Independent Review of the Postal Market and will form part of our legacy as Postwatch’s work is merged into the new National Consumer Council on 1 October.

The full report is also available for downloading on Postwatch’s website:
http://www.postwatch.co.uk/images/stories/pdfs/Research/2008/SME_Research_Report_May_08.pdf

New Zealand Post

On 28 March 2008, New Zealand Post introduced a new pricing in proportion system for all standard domestic mail. Similar to the system recently introduced in the UK this means letters and parcels sent within New Zealand are now priced in direct proportion to their size and weight. Previously parcels have been priced mainly on weight.

Although similar the systems are far from identical. The sizes and dimensions of the new system can be viewed here.

Motivations behind the change are very similar to that of the UK and reflect the worldwide drive for cost reflective pricing among incumbent postal operators. Previously some larger sized items of mail have been the same price to send as smaller items and this has not reflected the cost of handling them. As most of the mail that passes through our network is of a smaller size, it is fair that the postage price is in proportion to the size and weight of the item.

• larger items require manual processing (not machine processing)

• larger items require double handling by both Mail Sorters and Posties
• larger items are more costly to transport due to size
(New Zealand Post)

A further parallel with the UK can be seen with many standard items remaining the same price although New Zealand has not introduced a grace period for surcharging it will consider the change when assessing under paid items. The postage price for most of the standard domestic letters that go through the network remains unchanged at $0.50 because most of these letters are of a smaller size. (New Zealand Post)

However, a more selective brand of PiP is employed in New Zealand with the more lucrative bulk mail products escaping the new system. Bulk mail products (VolumePost, GoFlexible and PrintPost) and international products are not changing. (New Zealand Post)

We would like to learn of your experiences with Pricing in Proportion that was introdcued in the UK August 2006 or whether you are aware of any other similar systems being employed worldwide.

Changes to collection plates

Royal Mail is making changes to collection plates as a result of two separate initiatives, namely:

SUNDAY AND BANK HOLIDAY COLLECTIONS - CHANGES TO COLLECTION PLATES

Part of the agreement given by Postcomm to Royal Mail’s request to stop Sunday and Bank Holiday collections was for Royal Mail to amend the information on the collection plates.

Postwatch has been advised by Royal Mail that the removal of all references to Sunday and Bank Holiday collections to its collection plates will be completed by 25 February.

CHANGING COLLECTION PLATES TO SHOW FINAL COLLECTIONS AS CLOSE TO 12.00 MIDDAY (MONDAY – FRIDAY) AS POSSIBLE

In response to Postcomm’s Decision Document on its review of Royal Mail’s collection and delivery times Royal Mail has undertaken a review of collection points that have a collection time before 12:00 midday (Monday – Friday) to move as many back to midday or later where it was reasonably practical and make economic sense to do so. However, there will be some instances where it may not be possible in every instance due to practical and commercial restraints (further details are attached).

Royal Mail has advised us that all reviews are due to be completed by end of February/early March.

Another competitor to Royal Mail

The postal regulator Postcomm is minded, subject to consultation, to grant a licence to a company called Document Outsourcing Limited. It believes that the proposed licence will further the interests of postal users by promoting competition between postal operators and that it will have no adverse effect on the provision of a universal postal service in the United Kingdom.

Postcomm has just started a 30-day consultation on the proposed grant of a postal operator's licence to Document Outsourcing Limited.

Under the licensing framework that took effect from 1 January 2006, and was amended in January 2008, the licence would:

* allow Document Outsourcing Limited to provide all types of postal service;
* be issued for a rolling ten year period; and
* require the company to comply with codes of practice on mail integrity (safety and security of the mail) and common operational procedures (designed to ensure the multi-operator market works well in practice).