The Future of the Universal Postal Service in the UK PDF Download

Author: Great Britain. Dept. for Business, Enterprise and Regulatory Reform
Publisher: The Stationery Office
ISBN: 9780101756020
Category : Business & Economics
Languages : en
Pages : 24

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Book Description
This document builds on the review led by Richard Hooper, "Modernise or decline: policies to maintain the universal postal service in the United Kingdom" (Dec. 2008, http://www.berr.gov.uk/files/file49389.pdf). The Hooper review found deficiencies and problems with: performance (40 per cent less efficient than European counterparts); the pension deficit (one of the largest in Britain); pricing (increases would not generate enough revenue to offset falling volumes); industrial relations (60 per cent of days lost through industrial action in 2007 in the whole economy were accounted for by Royal Mail); and the relationship with the regulator, Postcomm (difficult). The Government proposes: a new regulatory framework, including transferring responsibility for regulation from Postcomm to Ofcom; tackling the pension deficit; inviting other postal or network operators to come forward with proposals to develop strategic partnerships with Royal Mail (but such arrangements would exclude Post Office Ltd, responsible for the network of post offices). The Postal Services Bill (HL), HL Bill 24, ISBN 9780108454530) published alongside this document sets out the proposals, placing the universal service as the overriding objective of the regulatory system. The Government will continue to provide for financial support for the universal service. Royal Mail will remain in the public sector. The Government is committed to maintaining a network of around 11,500 post offices. Post Office Ltd will become a sister company of Royal Mail Group Ltd with equal status to the letters business within the Royal Mail group of companies.

Author: Michael Crew
Publisher: Springer
ISBN: 331924454X
Category : Business & Economics
Languages : en
Pages : 351

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Book Description
Worldwide, postal operators have been slow to address the threats from and opportunities created by electronic competition. The European Commission and member states are wrestling with these issues, while at the same time continuing to deal with the interrelated issues of implementing entry into postal markets and maintaining the universal service obligation. The Postal Accountability and Enhancement Act of 2006 in the U.S. exacerbated financial and managerial problems faced by USPS that result in part from electronic substitution for letter delivery. A major aim of this book is to examine policies to address postal operations in a digital world and ways in which postal operators might reinvent themselves to respond to threats and exploit opportunities. Potential opportunities examined include parcels, e-commerce, digital delivery, regulatory innovations and pricing. This book will be of interest to postal operators, regulatory commissions, consulting firms, competitors and customers, experts in the postal economics, law, and business, and those charged with the responsibility for designing and implementing postal sector policies. Researchers in regulatory economics, transportation technology and industrial organization will also find considerable food for thought in this volume.

Author: Richard Hooper
Publisher: The Stationery Office
ISBN: 9780101793728
Category : Business & Economics
Languages : en
Pages : 56

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Book Description
The Coalition Government asked Richard Hooper to update the 2008 report "Modernise or decline: policies to maintain the universal postal service in the United Kingdom" (Cm. 7529, 2008, ISBN 9780101752923). He finds the universal postal service still under serious threat, with most of the original causes for concern having got worse: the market and Royal Mail's market share continue to decline; the company has still not modernised sufficiently; the accounting pension deficit has grown from £2.9bn to £8.0bn; the current regulatory regime is not fit for purpose. The 2008 recommendation that private sector capital is required by Royal Mail is reiterated, for several reasons. The company is unlikely to generate sufficient cash to finance the modernisation required. Private sector capital will inject private sector disciplines and reduce the risk of political intervention in commercial decisions. And the state of the public finances means that Royal Mail will find it harder to compete for Government capital against other public spending priorities. But private capital will not be attracted without action on the pension deficit and the regulatory regime. The historic pension deficit should be taken over by the public purse. A new regulatory framework must be created that increases certainly for investors in the postal services sector in general and in Royal Mail in particular. Postcomm has recently consulted on a new framework, and this should be built upon. This update sets out the high level principles that should guide regulation, ensuring the overall burden is reduced.

Author: Richard Hooper
Publisher: The Stationery Office
ISBN: 9780101752923
Category : Business & Economics
Languages : en
Pages : 172

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Book Description
This review (Cm. 7529, ISBN 9780102958393) was established to maintain the universal postal service, that is the collection, sorting, transportation and delivery of letters to all 28 million businesses and residential addresses. It sets out a number of conclusions and recommendations on how the universal service can be maintained. The postal service is seen as having a strong social and economic rationale. Customers place a high value on the affordability of the service, on a uniform tariff, and deliveries on six days per week. The Review states that the post offices provide a vital point of access for residential consumers and small businesses. The universal service is under threat though, with the explosion of digital media - the internet, email, mobile text and broadcasting - which has prompted an unprecedented decline in the letters market. The Review does see a positive future for the postal service, provided that postal companies are able to respond quickly to the changing needs of customers and embrace the opportunities which new technology brings. Although the Royal Mail is the only company currently capable of providing the universal service in the UK, it is much less efficient than many of its European peers and faces severe difficulties. Therefore a radical reform of the Royal Mail's network is inevitable, and the organisation needs to modernise faster. To sustain the universal service, the Royal Mail needs to tackle inefficiency, the pension deficit, and the difficult relationships between the company, unions and regulator. The Review sees two distinct phases to modernisation: (i) Transformation: that is, changing the culture of the organisation, by improving efficiency and reducing costs; (ii) Diversify: that is, finding new sources of revenue either by providing related products or expanding to cover a wider geographical area. The Review believes that the Royal Mail urgently needs commercial confidence, capital and corporate experience to modernise quickly and effectively, and recommends a strategic partnership with one or more private sector companies with demonstrable experience of transforming a major business, ideally a major network business, but that Post Office Ltd should remain wholly within public sector ownership.

Author: Great Britain: Department for Business, Innovation and Skills
Publisher: The Stationery Office
ISBN: 9780101794626
Category : Business & Economics
Languages : en
Pages : 28

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Book Description
This paper outlines the Government's proposals that aim to safeguard the universal postal service and secure sustainable futures for the Royal Mail and the Post Office. It follows on from two reports by Richard Hooper ("Modernise or decline ... ", Cm. 7529, 2008, ISBN 9780101752923 and "Saving the Royal Mail's universal postal service in the digital age", Cm. 7937, 2010, ISBN 9780101793728). The associated Postal Services Bill (Bill 78, ISBN 9780215546357) will allow private sector investment in Royal Mail to bring in commercial disciplines and the potential for new capital. The Government will sell shares in Royal Mail to achieve this investment. An employee share scheme will also be established which will hold at least 10 per cent of the equity in Royal Mail. The historic pension deficit of some £8.4 billion will be transferred to Government and a new public sector pension scheme created. The Government also makes clear that the Post Office is not for sale, but the Bill allows for the possibility of mutual ownership in the future. Finally, the regulation of the postal services sector is to be modernised. The responsibility for the mail sector will transfer from Postcomm to Ofcom, with a primary responsibility to act in a way that will secure the future of the universal postal service. Extra safeguards for the universal postal service are put in place by the Bill.

Author: Michael A. Crew
Publisher: Edward Elgar Publishing
ISBN: 0857935828
Category : Business & Economics
Languages : en
Pages : 361

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Book Description
This compilation of original papers selected from the 19th Conference on Postal and Delivery Economics and authored by an international cast of economists, lawyers, regulators and industry practitioners addresses perhaps the major problem that has ever faced the postal sector – electronic competition from information and communication technologies (ICT). This has increased significantly over the last few years with a consequent serious drop in mail volume. All postal services have been hard hit by ICT, but probably the hardest hit is the United States Postal Service, which has lost almost a quarter of its mail volume since 2007. The loss of mail volume has a devastating effect on scale economies, which now work against post offices, forcing up their unit costs. Strategies to stem the loss in volume include non-linear pricing or volume discounts, increased efficiency and the development of new products. This loss of mail volume from ICT is one of a number of current problems addressed in this volume. The Universal Service Obligation (USO) continues to be a leading issue and concern that ICT undermines postal services' ability to finance the USO is discussed. The importance of measuring and forecasting demand and costs take on even greater importance as ICT undermines the foundations of the postal business. This thought provoking book brings to bear new analyses of the most serious threat post offices have ever faced and raises fundamental questions as to the future of mail. Multi-Modal Competition and the Future of Mail is an ideal resource for students, researchers in regulation and competition law, postal administrations, policy makers, consulting firms and regulatory bodies.

Author: Great Britain: Parliament: House of Commons: Scottish Affairs Committee
Publisher: The Stationery Office
ISBN: 9780215555830
Category : Business & Economics
Languages : en
Pages : 160

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Book Description
The Committee's report considers two key issues: the maintenance of a universal service and the continuation of a sustainable Post Office network across Scotland. The report welcomes assurances that Scotland would not be made exempt from the universal service obligation. Further clarification is needed on Ofcom's power to designate more than one universal service provider. Ofcom should be required to consult with consumers, small businesses and vulnerable users in remote, rural and island communities in Scotland before it recommends any changes to the existing USO. There are considerable advantages to a long, stable and robust relationship between Royal Mail Group and Post Office Ltd and the Committee recommends that a ten year Inter Business Agreement should be reached prior to any sale of Royal Mail. On the Post Office network, the Bill makes no provision for the number of Post Offices and does not set out criteria for access to the network, a matter of concern because the current criteria could be met by 7,500 branches rather than the existing 11,500 branches. This could lead to many closures in Scotland. The Committee recommends that the Government gives assurances to preserving the existing network of branches. Elements of Outreach Post Offices, which replaced 102 Post Office branches in rural and remote parts of Scotland, are not sufficiently robust or reliable to provide an adequate service, according to the Committee, and it fears the new Post Office Local risks downgrading the service further. Improvements should be delivered as a matter of urgency.

Author: Great Britain. Parliament. House of Commons. Business and Enterprise Committee
Publisher: The Stationery Office
ISBN: 9780215529473
Category : Business & Economics
Languages : en
Pages : 68

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Book Description
In "Modernise or decline: policies to maintain the universal postal service in the United Kingdom" (Cm. 7529, ISBN 9780101752923) the Hooper review confirmed that Royal Mail Group was the only company capable of delivering the service and proposed a package to deal with the Group's problems. The state should take responsibility for the historic pension deficit; there should be a new regulatory regime, in which mail services would be regulated as part of wider communications services, and, most controversially, there should be a private sector equity partner in Royal Mail. The Government accepted these proposals (Cm. 7560, ISBN 9780101756020) and introduced the Postal Services Bill (HL Bill 24, ISBN 9780108454530). The Committee supports the proposals on the pension fund and the new regulatory regime. But it does not consider that the case has been made that these two reforms can only be made as part of a package which includes the third reform - the involvement of a private sector equity partner in Royal Mail. The provisions contained in the Bill allowing such a partnership are not necessary or desirable as the Government already has powers to sell shares to enable Royal Mail to participate in a joint-venture. There is a lack of clarity over how much investment is needed or where that investment will come from, while the Government appears to have no business plan and has not indicated the use to which any private sector capital would be put. Given this uncertainty the case must rest on its non-financial benefits, and the Committee poses several questions about the proposed partnership which must be addressed.

Author: Great Britain: Parliament: House of Commons: Business and Enterprise Committee
Publisher: The Stationery Office
ISBN: 9780215532725
Category : Business & Economics
Languages : en
Pages : 92

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Book Description
The post office network has been reduced to 12,000 post offices and outreach services, though the Government has set access criteria for the network to ensure that it covers the whole country. This report examines what services could be provided by the network to ensure its future viability and what people want from their post office network. There is no shortage of demand for more services. The network can and should provide: mail services; financial services (especially enhanced banking services); local authority services; central government services; and broader community services. Many of the problems facing the network are a consequence of the Government moving services online, and so reducing Post Office Ltd's income. The Committee believes the Government has seriously underestimated the potential of the network to serve as a link between government and its citizens. The Digital Britain report (Cm. 7650, ISBN 9780101765022) sees the internet as the primary means of access to public services. The Committee support e-delivery of public services but however much the Government may want to encourage digital inclusion, it also needs to prevent social exclusion. 40 per cent of households do not have internet access. Although some departments are seizing the opportunity a truly national network offers to allow easy access to their services, many government departments are woefully unimaginative about the needs of their customers, and show too little respect for members of the public's right to choose how to deal with the Government.

Author: Duncan Campbell-Smith
Publisher: Penguin UK
ISBN: 0141973226
Category : History
Languages : en
Pages : 840

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Book Description
The origins of the Post Office go back to the early years of the Tudor monarchy: Brian Tuke, a former King's Bailiff in Sandwich, was acknowledged as the first 'Master of the Posts' by Cardinal Wolsey in 1512, and went on to build up a network of 'postmasters' across England for Henry VIII. Over the following five hundred years the Royal Mail expanded to an unimaginable degree to become the largest employer in the country, and the face of the British state for most people in their everyday lives. But it also faced the demands of an increasingly commercial marketplace. With the election of Margaret Thatcher in 1979, the possibility of privatising the Royal Mail has prompted passionate arguments - and has added immeasurably to the difficulties of running it. In charting the whole of this extraordinary story, Duncan Campbell-Smith recounts a series of remarkable tales, including how postal engineers built the first programmable computer for the wartime code-breakers of Bletchley Park and how the Royal Mail managed to successfully continue delivering post to the front lines during two world wars, but also how they failed to avert the Great Train Robbery of 1963. He brings to life many of the dominant personalities in the Royal Mail's history - from Rowland Hill, who imposed a uniform penny post and set the great Victorian expansion on its way, to Tony Benn who championed the modernisation of the service in the 1960s and Tom Jackson who led the postal workers' biggest union through fifteen frequently stormy years up to 1982. This is the first complete history of the Royal Mail up to the present day, based on its comprehensive archives, and including the first detailed account of the past half-century of Britain's postal history, made possible by privileged access to confidential records. Today's debate over the future of the Royal Mail is shown to be just the ;atest chapter in a centuries-old conflict between its roles raising revenue and serving the public. Will its employees remain, like Brian Tuke's postmasters, servants of the Crown? This book could hardly appear at a more timely moment.