An eye on the future…

Royal Mail’s long awaited response to Postcomm’s Strategy Review has been published and it gives an interesting insight into how it sees the future of the postal market and what decisions need to be taken now to sustain the universal postal service.

Some key messages from the response include the following. Royal Mail urges Postcomm to address four principles of regulation:
• Removal of cross-subsidies to create appropriate signals for business customers and to ensure that competition is sustainable
• A narrower range of universal service products focused on the need of social customers and fully funded through stamp prices
• Full retail deregulation of business products
• Continued operational integration of the postal network

For further information on the Strategy Review and a full copy of the response please go to www.psc.gov.uk/strategy-review.html

Fully Comp?

Postwatch today submitted our response to Postcomm's consultation on Royal Mail's compensation schemes. You can see the full document here.

This is the first section of a three part consultation and we look forward to seeing the recommendations Postcomm make.

Due consideration?

DTI have confirmed in an answer to a parliamentary question that it has already received 367 responses to its consultation on the closure of 2,500 post offices. The consultation is due to close on 8 March. Postwatch’s own response will be submitted on or just before the closing date. Despite the impressive number of responses already received, with many more expected, the DTI is sticking in its public announcements to publishing its response before the end of March.

While we all want to know the outcome as quickly as possible, contributors will also want to be certain that their views were given due consideration. Customers will judge the quality of the decision not the speed at which it was made.

The end is nigh!

From the 1st March 2007 Royal Mail will reintroduce surcharges for underpaid mail items.

A surcharging amnesty had been in place since the introduction of Pricing in Proportion (PiP) in August 2006.

Postwatch considers the surcharging grace period to have been be a useful and welcome initiative, introduced by Royal Mail on our recommendation. However, now is a sensible time, post Christmas and Valentine's Day, to reintroduce surcharging.

Challenge to Royal Mail funding

Royal Mail faces an investigation into whether funding it received was illegal under laws governing state aid. The European Commission is to examine whether British Government guaranteed loans granted to Royal Mail between 2001 and 2007 constituted state subsidies.

More information here.

Posting the way

"Royal Mail is performing better than it has done for a long time. It has been a very consistent, reliable and good service recently. But an organisation like Royal Mail won't turn on a sixpence. Historically, it has been arrogant and hasn't shown 21st-century good customer practice because it didn't think it had to. It has to develop a more customer-friendly outlook."

Judith Donovan, chairman of Postwatch North, quoted in an interesting article in the current edition of "Marketing Week" which concludes with a list of business customers recently lost by Royal Mail.

St Valentines Day

Postwatch supported Royal Mail moving to a single daily delivery on the grounds that it would enable more 1st class mail to be delivered next day and reduce costs.

As the postman comes after we have left for work, it does however mean that most of us cannot read our Valentine card(s) until we get home. Not the end of the world, and it's better than getting an e-card!

Fits the bill

Some good news to report on the post office network today- Post Office Ltd has retained its contract to provide a bill payment service for BT customers for another 5 years.

Overall, Post Office Ltd handles some 270 million bill payments every year.

Not only does this development help to ensure the future viability of the post office network, but it is also welcome news for customers who rely on the post office for bill payments.

Post Office Closures

The Government is consulting on the future of the post office network. That consultation closes on 8th March.

The Government is proposing to fund up to 2,500 post offices closures. This represents a reduction of 17.5% in the number of post offices. No decisions on where these closures will take place have been taken but if the split is proportionate across the UK it would result in:



Postwatch strongly urges anyone or group interested in the future of the post office network to contribute their views to the DTI’s consultation.

Spot The Difference

Recorded Signed For - V - Special Delivery

When choosing the most appropriate service to send an important or valuable item, it can be difficult to decide the most appropriate, especially as there are several similarities between the Recorded Signed For service and the Special Delivery service.

Whilst both services will provide proof of delivery in the form of a signature, automated confirmation of delivery and a certificate of posting, the similarities end there.

Mail sent via the Recorded Signed For service travels in the same way as First and Second Class mail, with the only difference being that it is separated before delivery so that a signature can be obtained.

However, mail sent via the Special Delivery service, is tracked through each step of the postal system and is handled in a secure manner. For this reason, Royal Mail recommend this as being the only inland service suitable for sending valuables, such as cash, tickets and jewellery.

It can be very confusing when trying to establish the most suitable service, but it would be worth keeping the following in mind when trying to decide between the recorded services:

Recorded Signed For:


• For items valued under £32.00, so long as they do not fall under the restrictions (cash, vouchers, tickets, jewellery etc)
  
  
• Travels through the postal system in the same way as First and Second Class items, and is only separated at the point of delivery, when a signature is obtained.
  
  
• Ideal for important documents that do not need to reach their destination urgently, do not have a replacement cost of more than £32.00 and where consequential loss will not arise as a result of their delay/non-arrival.
  

Special Delivery (by 1pm only):


• For Special Delivery by 1pm, all items are automatically covered for up to £500.00 (market value or replacement costs) and additional cover can be purchased at the time of posting.
  
  
• If consequential losses will occur as a result of the non-arrival or delay of the item, it may be worth looking into purchasing additional consequential loss cover. Please note this is only relevant if the sender will be incurring the consequential loss.
  
  Most suitable service for sending cash, tickets, jewellery, vouchers etc.
  

These are just some simple pointers and things to keep in mind when trying to decide which service is most suitable for your needs.

If in doubt, further information can be obtained by calling Royal Mail Customer Services on 08457 740 740 or by referring to Royal Mail’s website: www.royalmail.com.

To ensure claims for compensation will be considered upon loss or delay of an item, it is important to retain the certificate of posting, which will be provided at the time of posting, and in the case of delay, retain the delayed envelope.

Please also remember that Postwatch will be happy to address any queries and can be contacted on 08456 013265.

Postwatch meets the Greater London Assembly

On Tuesday 5 February, Postwatch Greater London attended a meeting of the Greater London Assembly’s Health and Public Services Committee. The Committee was following up its work in 2004 on London post office closures, and was also keen to ensure the Assembly’s submission to the government’s consultation on the future of the post office network was as well informed as possible.

Also present were representatives of Post Office Ltd, the Communication Workers Union, and the New Economics Foundation. Roger Darlington spoke for Postwatch Greater London and summarised our position by making the following points:

• that no post office in an urban deprived area should close if there is not an alternative with 0.5 miles (this was a criterion of the Urban Reinvention programme);
  
  
• that ‘outreach’ services should be considered where it is not possible to maintain a full-time post office outlet;
  
  
• that local consultations should be meaningful and that Postwatch should be properly resourced to take part;
  
  
• that local authorities should consider what support they might provide to help maintain post office services in their area.
  

The spirit of the meeting was constructive, and all parties recognised that although this is a very difficult time for the post office network, a future ‘restructuring’ programme represents an opportunity to get the best possible network for Post Office Ltd and its customers.

You can access Postwatch’s written evidence HERE

and a webcast of the meeting at:

http://www.london.gov.uk/assembly/webcasts.jsp

Can Jim fix it for CAG?

The Counters Advisory Group, chaired by Postwatch, has today written to the Minister for Postal Services Jim Fitzpatrick outlining a number of shared concerns about the Government’s proposals for the post office network.

CAG includes stakeholders such as Age Concern, Help The Aged, Citizens Advice, the National Consumer Council and others.

The group’s concerns include:

Access criteria: The group believe that distance and topography are good starting points for access criteria, but other factors should be taken into account where individual changes to the network are proposed. For example: walking distance to alternative offices; public transport availability; access to basic services; and local socio-economic factors.

Urban deprived areas: Under the Urban Reinvention restructuring, other than in exceptional circumstances Post Office Ltd were unable to close post offices unless there was an alternative within 0.5 miles. The group feels the same protection should apply again.

Outreaches: The group has broad support for outreach services, but questions as to how and where outreaches will operate. The group also has concerns that there should be no interruption in service during the transition period from previous post office arrangements.

Implementing the programme: Members have concerns that the 18-month period proposed for the change programme is ambitious. CAG members stress the need for 12-week local consultations to ensure all stakeholders can participate. Members are concerned about Postwatch’s role given the merger of Postwatch with Energywatch and the NCC in 2008.

The full letter can be found here, and you can read the Group’s press release here.

Royal Mail's Sameday service

Postcomm has granted Royal Mail an exemption to notify it of changes to the terms and conditions of its Sameday service - a courier service that collects and delivers urgent items to specified addresses almost anywhere in the UK, on the same day.

Postcomm is of the view that lifting the notification requirements should not adversely affect consumers. Postwatch is in support of Postcomm's veiw, we believe competition will regulate the Sameday service' quality of service standards.

Early delivery?

Postwatch notes with interest the DTI’s comments that it expects to make its announcement on its future strategy for the post office network before the end of March.

Just weeks after the consultation closes on March 8th, it seems stakeholders will find out where they have influenced Government thinking as set out in the consultation document released in mid December.

Postwatch is currently active across the UK in promoting awareness of the consultation. We are also seeking to engage with stakeholders to inform our own response.

The best solution will of course be one where stakeholders views are incorporated, and where everyone who wants to fully has their say on the future of post offices.