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
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
posted by Postwatch at 3:34 pm
5 Comments:
So in pure English -
"Removal of cross-subsidies to create appropriate signals for business customers and to ensure that competition is sustainable" - in other words a complete removal of subsidisation which keeps all prices low which we've had for 350 years, now Postcomm want to scrap it.
"A narrower range of universal service products focused on the need of social customers and fully funded through stamp prices" - This is the end of universal service, Royal Mail are saying they need to cut back on services because of increase costs and the loss of revenue as private mail operators cherry pick the bulk business mail. You will pay more in stamp prices.
"Continued operational integration of the postal network" - More downstream access, as more operators under cut Royal Mail on prices (ROYAL MAIL CANNOT COMPETE ON A EVEN FOOTING AS POSTCOMM WILL NOT ALLOW IT TO LOWER IT PRICES TO FIGHT OFF COMPETITION) but don't have to provide a delivery service, this is how they can remain cheap, 1 man in a lorry shifting millions of letters.
The postal system is a disgrace.
The postal service is a disgrace. Competition in the market is false and will not give the majority of people, the ordinary public, choice. The day I see DHL or TNT delivering mail round my rural duty will be the day pigs fly.
I'm in agreement with Royal Mail in allowing them to compete on a level playing for business mail.
Whilst I accept that RM isn't privatised, you can't have a situation where the market is 'slightly deregulated' - either it is or it isn't. As things stand, Royal Mail are being handcuffed whilst competitors are allowed to creep in.
Deregulation has happened fairly swiftly, but the regulation under which Royal Mail has to operate is as tight as ever. Regulation should reflect the pace of all this change.
I also disagree that Royal Mail hasn't cut costs with its workforce. Ask ANY postman or postwoman across the country what their working conditions are like - they have changed beyond all recognition over the last 12 months. They are being beaten with virtual sticks and morale is very low indeed. They deliver far more and many are putting in additional hours unpaid - some using their own cars to cope with the rounds.
There is only SO much Royal Mail can ask of its workforce. It needs its workers 'on side' - not alienated by unbelievably difficult working conditions.
Lets not lose sight of the fact that the competition still use Royal Mail for the final mile even where Royal Mail have lost contracts and TNT isn't interested in domestic mail - there is no profit in it. If the market is to be competitive then for goodness sake Postcomm - let Royal Mail compete on a level playing field.
How do you explain to Postcomm's chairman that his poilicies are all wrong, will he listen? does he care? The answer is "NO" to both.
We are in a situation where they (Postcomm) think they know best. Since deregulation and it is deregulation! Prices have increased for joe public and decreased for bulk business mailers who were getting a good deal under Royal Mail in the first place.
Now the threat of losing the universal service, zonal pricing, increases in stamps is by no means a benefit to anyone so why do Postcomm with 100% encouragement from Postwatch go ahead with their stupid unrealistic plans?
In a postal utopia all customers would have choice although this does not exist for social customers in today's market. Postwatch still believes that competition is good for customers and there are signs that innovation is increasing, prices are competition but we are mindful of any potential impact on the universal service. Postwatch remains independent and does not support the Regulators policies unless there is a distinct customer benefit. Our successes for customers over the last few years have been well documented and we have considerably influenced Postcomm's policies so as to bring the customer element to a more prominent level.
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