Britons value universal service that guarantees their mail deliveries

Britons value universal service that guarantees their mail deliveries

A heated debate in the United Kingdom's House of Lords recently illustrated the high level of concern which has been conveyed to peers over the future of the British Post Office's universal service obligation.

At the core of that obligation is the operator's duty to offer a delivery service of items of mail to the door of every address in England, Scotland and Wales for a pre-set range of prices, which depend on the size and weight of the consignment.

Worries have long been expressed that, if the obligation is removed during the course of the current moves to prepare parts of the Royal Mail for sale to private operators and investors, other operators will step in to cherry-pick' the business from more profitable areas, leaving the Royal Mail to operate the service in those areas which remain. It is the cost of providing a standard level of service to all parts of England, Scotland and Wales which has been largely responsible for the company registering large financial losses, and making thousands of people redundant as a result, in recent years.

The British peers were discussing the Postal Services Bill, the legal framework under which the sell-off of the Royal Mail will take place. They are worried that the cost of retaining the universal service will become so high that the Royal Mail will have to raise postal prices much higher than their present levels. This, they fear, will leave it exposed to the risk that the private operators will be able to undercut the main service provider. As a result, they fear that investors will be reluctant to put money into a company which is unable to compete in one of its most important markets.

Under European rules, member countries have to maintain a letter delivery service six days a week, and provide that for a flat price.

Some companies said to be interested in buying the Royal Mail have already said they believe that provision of a universal service is an ancient relic, and should be abandoned.

But one peer, who is also a former postman and member of one of the sector's main trade unions, says that any such move would be very bad for Britain. In some countries where mail deliveries have been put entirely into private hands, the obligation to offer that universal service has been abandoned.

Anyone who has a parcel to send can take advantage of looser regulation which means that parcel post rates can vary between operators, and therefore shop around online to find the best UK Mail prices.

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