Letters by licence plan
Page 14
If you've noticed an error in this article please click here to report it so we can fix it.
/ The Government is considering licensed regional competition in letters delivery as a route to privatising the Post Office. Franchise parcels company Business Post proposed the idea following the announcement of a Government review of Post Office structure (CM 6-12 August).
Sales and marketing director Guy Buswell says: "We haven't actually created a complete proposal, but it is something we intend to do. We see no reason why we shouldn't do what the Post Office does in the long term.'
The Department of Trade and Industry is said to be "very keen" on the plan, which would also involve an independent regulatory body to introduce competition gradually.
Leon Morelli, chairman of the Mail Users Asociation, says that the role of a regulatory body might eventually be fulfilled by the association itself. "We have always been in favour of competition under licence, but there does need to be an independent regulator," he says. This plan is one of four options being considered. The others are: splitting collection and delivery services; encouraging companies to bid for all or part of the Post Office: and a management buy-out from government control.
Securior Omega is interested in setting up a collection service from mail boxes, delivering to Royal Mail offices, while TNT is keen to take on letters deliveries provided the Government gives it exclusive rights to compete with the Post Office.
Alan Jones, chairman and chief executive of TNT Express UK, says competition should be limited "because fragmentation would destroy economies of scale."
"If it were a free-for-all," says Jones, "that would then put the costs up, which isn't in anybody's interest."