Royal Mail’s parent company, International Distribution Services (IDS), confirmed yesterday, (30 April), that investors have voted in favour of the takeover of Royal Mail by billionaire Daniel Křetínský’s company, EP Group, which includes the future of the Universal Service Obligation (USO).
“Mr Křetínský will own a British institution that’s been precious to the fabric of the nation for over 500 years,” states the Greeting Card Association’s (GCA) ceo Amanda Fergusson. “And while we acknowledge and welcome his investment plans and public promise to uphold Royal Mail’s obligations under the USO, our members remain deeply concerned about current plans to weaken Royal Mail’s commitment to customers. If proposed changes to the USO are implemented later this year, the small businesses we represent will be left increasingly reliant on an uncapped, unregulated first-class postal service that will put significant pressure on them, and the consumers they serve,” she explained.
“Even the regulator Ofcom acknowledges that its proposals are likely to push first class stamp prices even higher, with its own data showing 62pc are sending fewer letters precisely because of rising prices. The cost of a first-class stamp price is up 170 per cent over the last decade, and the price rise that took effect earlier this month (7 April) is the sixth in under three years. These rises are causing significant concern among GCA members, which represents over 500 publishers, retailers, agents, specialist suppliers and distributors that make up an industry worth over £1.5bn to the UK economy.
“With over 17,000 now backing our petition to keep the postal service, national, reliable and affordable, we continue to have high-level discussions with Ofcom and other stakeholders in support of the needs of members and the card sector.”
Four out of five consumers believe rising stamp prices and reduced delivery days will negatively impact small businesses and the UK economy, while three out of four consumers believe these actions act against consumer expectations and are a step backwards.
Top: Royal Mail will be under foreign ownership for the first time in its 509 year history.
