Mark Isherwood
North Wales Assembly Member Mark Isherwood is calling on the UK’s postal services regulator Ofcom to bring forward regulatory action to protect local postal services.
Ofcom is responsible for safeguarding the UK’s six-days-a-week, one-price-goes-anywhere Universal Service Obligation (USO).
The combined impact of a marked decline in letters volumes due to ‘e-substitution’ and a huge growth in online commerce over the last decade has put the universal service under strain. In response, Royal Mail and its union the CWU, have worked together to make the business more efficient, more customer focused and better geared to being a parcels business.
However, while Royal Mail delivers to every door on every delivery route, its competitors can choose where and when to deliver mail and are not required to meet regulated standards for delivery. Royal Mail state that fast expanding competition will hit Royal Mail revenues, and with it the profitability it relies on to cross-subsidise the full costs of delivering the universal service, including to remote and rural areas in North Wales.
Royal Mail recently submitted evidence to Ofcom in which it called for a review of ‘direct delivery’ competition to be brought forward.
Mr Isherwood said; “I believe Ofcom should heed Royal Mail’s concerns and act now to protect the universal service. The risk of inaction risks jeopardising a cherished service upon which thousands of communities rely.”
In an email to Ofcom backing Royal Mail’s calls, Mr Isherwood states:
“Royal Mail welcomes competition, but believes it needs to be on a level playing field.
“I understand that Ofcom’s primary duty under the Postal Services Act 2011 is to protect the USO and that Ofcom has previously set out a number of tests that would need to be met in order to for it to conduct a review of the impact of direct delivery competition.
“The submission by Royal Mail shows how those thresholds have been met, and highlights the pressing need for an immediate review.
“I am advised that Ofcom has said it will conduct a review before the end of 2015. However, it is understood that this may be too late to put in place effective measures to protect the Universal Service, which will take some time to design and implement.
“In these circumstances, the risks of Ofcom not bringing forward the review it has already committed to are potentially high.”
