25.02.2009
DX Group (DX), the leading independent mail and courier company has, since 1975, been the key competitor to Royal Mail for the provision for end-to-end postal services for business mail. During our history, we have witnessed numerous attempts by various Governments to make changes to Royal Mail, to ensure its long-term sustainability, in particular to ensure its ongoing ability deliver the universal postal service. None of these efforts has so far succeeded and now with electronic substitution and declining mail volumes, both Royal Mail and the industry as a whole is threatened and need to innovate, focusing on the evolving customer needs to stay relevant.
It is against this background that the DX Group welcomed Richard Hooper's analysis, in December 2008, of the problems facing the UK postal sector in general and Royal Mail in particular, together with the broad thrust of his three linked recommendations on private sector partnership, the pension fund deficit and transfer of regulatory responsibility from Postcomm to Ofcom.
“We made clear at the time of the report publication and want to reiterate now the Government plans to publish its legislation tomorrow (26th February), that it will be in the detail of implementation of each of the recommendations that the success or otherwise of the policy will depend.” Stated John Coghlan, CEO of DX. “The focus must be on providing the maximum benefit to users of postal services, who over the past few years have suffered from periods of severe disruption of their services and from prolonged uncertainty.”
The UK postal market, and customers within it, need a strong and successful Royal Mail. We believe that will be best achieved if Royal Mail faces effective competition, and it will therefore be of key importance that any form of private sector partnership and Government support for the pension fund deficit are structured in such a way that sustainable competition is fostered rather than diminished. Similar considerations should inform the transfer of regulatory responsibilities from Postcomm to Ofcom.
“If Royal Mail stumbles, the competing electronic substitutes are ready and waiting to benefit. The resulting loss in faith in mail as a medium could not only damage Royal Mail but private operators such as DX as well” concluded Coghlan.