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MINISTERS must intervene to ensure competition in the postal sector does not spiral out of control, post union CWU warned last night.
In a submission to the business, innovation and skills select committee, the union said unhealthy levels of competition could put Royal Mail’s universal service obligation under threat. CWU general secretary Billy Hayes called for a cap on unregulated competition.
The majority-privatised post service is obliged to deliver to every address in Britain for the same cost — and to make a delivery six days a week.
Mr Hayes said: “At the moment it seems to favour its duty to promote competition in the postal sector instead of ensuring the financial sustainability of the USO.
“Customers receive a good-quality service from Royal Mail’s postmen and postwomen and competitors rely on the flexibility of the universal service, which allows them to pass on responsibility for delivering high-cost mail.
“The universal postal service is highly valued by the British public and essential to a fully functioning economy and society. We believe a cap will help to support a healthy, sustainable level of competition in the postal sector.”
Earlier this year, it was revealed that taxpayers had been ripped off by a whopping £1 billion in the Royal Mail privatisation — after the service was undervalued.
The devastating impact of postal privatisation across Europe is chronicled in James Meek’s new book Private Island, in which he describes how casualised deliveries in the Netherlands leaves months worth of post undelivered.
