Speaking after Ofcom's consultation on 'Securing the Universal Service Obligation' closed Moray’s SNP MP, Angus Robertson, has warned that the proposed changes could leave rural and remote communities with a second class postal service. As part of a consultation on the future of the universal service obligation, which ensures it costs the same to send and receive mail wherever you live, Ofcom are proposing to give Royal Mail full commercial freedom to determine contracts with large companies and other postal providers as to what they will charge for the final delivery of items. Ofcom suggest there should be no cap on prices for the vast majority of Royal Mail's services, including business post, bulk mail, and large letters and parcels sent second class. Local MP Mr Robertson says that this could lead to higher prices in rural and remote areas and the SNP has raised the matter at a meeting with Ofcom. Angus Robertson MP said: " Everyone understands that it is more expensive to deliver items to rural and remote areas, but up to now we have always had a one price anywhere policy which ensured that we did not have the situation that has developed in the parcels market where some companies will not deliver to the Highlands and Islands of Scotland. “ The issue of parcel delivery was highlighted recently by a major survey carried out by Citizens Advice Scotland and it is an issue I regularly hear about in my own postbag. " Under the Ofcom proposals Royal Mail will be able to negotiate a contract directly with other companies but it does appear that it is the intention of Ofcom that such contracts should be cost reflective, which means that we could reach a situation where different prices were being quoted for different areas. “ A move like this would be very worrying as I firmly believe it undermines the Universal Service Obligation. The USO must not be eroded as it provided vital protection of postal services in rural areas like Moray and the wider North and North East of Scotland. " The removal of the cap would have very serious consequences for small businesses who rely heavily on Royal Mail's services and the proposals come at a time when many are all ready under real pressure. " The Ofcom proposal would allow Royal Mail to charge whatever it wanted for first class services while the cost of second-class postage could rise by more than 50 per cent. " Large businesses who send a lot of mail will never pay the full first class price but will always be able to get a better deal or bulk discount from Royal Mail. They would also have the option of doing a deal with one of the alternative private providers. " These options are not available to our small businesses. They rely on Royal Mail's service to be able to deliver letters and small packages around the country. They could be priced out of the market risking their very survival. " These are very serious issues which Ofcom do not appear to have taken on board with their proposals. The Postal service remains vital to our communities and they must look at them again before it is far too late." |
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MORAY MP WARNS ON RURAL DELIVERIES AS OFCOM CONSULTATION CLOSESposted 25 Jan 2012 02:58 by Graham Leadbitter |