Missing Postwatch already?
Last week, the House of Lords published a Select Committee report on the UK economic regulators including Postcomm. In Chapter 5 of the report, there is a section entitled "How are consumer interests protected in the regulatory state?"
This looks at models of consumer representation and comparisons are made between the integrated model of the Ofcom Consumer Panel and the Financial Services Consumer Panel - where the consumer body sits in the regulator - and the alternative standalone model of Postwatch and Energywatch - where the consumer body sits outside the regulator.
The report concludes that:
- "Different consumer representation models operate in the regulatory state and all the regulators were vociferous in justifying their particular model. However, we believe that stand alone consumer representation bodies are more transparent and more effective."
- "The new landscape for consumer representation has been created by the Consumers, Estate Agents and Redress Act 2007 [Consumer Voice]. We are sceptical that the proposed new arrangements will lead to improvements in consumer representation but we recognise that it is too early to judge whether our scepticism is justified. The new arrangements will need careful monitoring and this is a role that might be taken up by a sessional Committee on regulators."
This is a reference to the fact that the CEAR Act will combine both Postwatch and Energywatch with the National Consumer Council so that, from October 2008, there will not be a sector-specific consumer body for postal services.
This looks at models of consumer representation and comparisons are made between the integrated model of the Ofcom Consumer Panel and the Financial Services Consumer Panel - where the consumer body sits in the regulator - and the alternative standalone model of Postwatch and Energywatch - where the consumer body sits outside the regulator.
The report concludes that:
- "Different consumer representation models operate in the regulatory state and all the regulators were vociferous in justifying their particular model. However, we believe that stand alone consumer representation bodies are more transparent and more effective."
- "The new landscape for consumer representation has been created by the Consumers, Estate Agents and Redress Act 2007 [Consumer Voice]. We are sceptical that the proposed new arrangements will lead to improvements in consumer representation but we recognise that it is too early to judge whether our scepticism is justified. The new arrangements will need careful monitoring and this is a role that might be taken up by a sessional Committee on regulators."
This is a reference to the fact that the CEAR Act will combine both Postwatch and Energywatch with the National Consumer Council so that, from October 2008, there will not be a sector-specific consumer body for postal services.
Labels: Consumers Estate Agents and Redress Bill, Energywatch, NCC, Postwatch
posted by Postwatch at 5:08 pm
1 Comments:
At Hellmail we remain very concerned that with a constantly changing postal market and a great deal of money tied up in terms of competition, that an essential service like postal delivery really needs a dedicated body rather than a revamped subsection of some greater watchdog.
Targets set by Postcomm are fine and dandy but statistics are meaningless where the goal posts on what is deemed a 'next day' delivery are constantly shifted. Figures alone don't protect consumers and Postwatch has been key in improving the way Royal Mail handles complaints and there is still, even now, further room for improvement.
Clearly as Royal Mail continues to become cost-effective and full-time postal workers are replaced by part-time or casual workers (as seems to be happening now), corners will inevitably be cut and with mail dergulation still at a fairly early stage in the UK, the problems that consumers face will continue to change.
Like many others, we remain unconvinced that the absorption of Postwatch will give it the same 'bite' it has had up to now and we have to be careful that the changes are not just a cost-cutting exercise rather than a meaningful way to help strengthen Royal Mail's ability to deal with its customers.
Royal Mail has made huge strides in terms of handling complaints promptly and fairly but we envisage the nature of complaints to change drastically as the market becomes fiercer still. Headlines of mail dumped in rivers does not instill confidence and industrial relations at Royal Mail will play a big part in Royal Mail's integrity and ability to deliver. The last thing we need now is to weaken the customers hand.
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