CWU WELCOMES REVIEW OF COMPETITION

CWU welcomes the announcement by John Hutton that there will be a government review of competition in the postal market.

Billy Hayes, general secretary, said: “This is a crucial review which will help to shape the future of the postal sector in the UK. The CWU pressed for a commitment to a review of the effects of liberalisation as part of the Labour Party manifesto and we are delighted that the government are honouring that commitment. The CWU has also continued to consistently campaign for that review and CWU will be taking an active role in this review.

High on our list of issues are the effect of downstream access, the universal service obligation which currently disproportionately burdens Royal Mail, and the role of Postcomm which has proved disappointing.

“This review must address the needs of customers, workers and mail businesses to ensure that the UK has an effective and successful publicly owned postal service and efficient postal sector. The future of the postal service is fundamental to the British public and economy and this review is an opportunity that cannot be missed.”

The Governments press release in full:

GOVERNMENT TO REVIEW POSTAL SERVICES SECTOR

Secretary of State for Business, John Hutton, today announced a comprehensive review of developments in the postal services market since its liberalisation two years ago.

Mr Hutton today appointed Richard Hooper, Deirdre Hutton and Ian Smith to carry out the review which will report in the summer next year.

John Hutton said:

“We are committed to maintaining a universal postal service that meets the changing needs of consumers and businesses.

“We believe that opening the market has brought considerable benefits for users of postal services but there can be no doubt that the market has evolved, with new technologies such as email and text messaging having a huge effect on the way we communicate.

“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.”

Richard Hooper, who will chair the Review said:

“I welcome the opportunity to lead this Review.   Postal services in the UK are steeped in history and remain an important part of the UK’s national infrastructure.  There have been rapid developments in recent years and it is clear that this is a good time to look at these developments and future trends”.

The Review will consider how the universal postal service can be maintained in an increasingly competitive market. The independent panel will undertake a thorough analysis of the effects of all the changes in the sector, and identify future likely trends and their implications.

The provision of a universal postal service at affordable prices, which was enshrined in legislation in 2000, remains the top priority for the Government.  

The Review will take evidence from all interested parties including Royal Mail, Postcomm, Postwatch, the CWU, UNITE, other licensed postal operators, the National Federation of SubPostmasters and customer representatives such as the Federation of Small Businesses.   A general call for evidence for the Review has been issued so that the Review Panel’s analysis of the market can take into account the views of the widest possible range of interests.

• The review’s terms of reference are:

• To assess the impacts to date of liberalisation of the UK postal services market, including on the Royal Mail, alternative carriers and consumers.

• To explore trends in future market development and the likely impact of these on Royal Mail, alternative carriers and consumers

• To consider how to maintain the USO in the light of trends and market developments identified.

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