Post regulator Ofcom should be taken to court for “failing to protect the universal service obligation (USO),” furious union reps said yesterday.

Ofcom announced a raft of measures yesterday to step up postal regulation — including a consultation on allowing the recently privatised Royal Mail to charge competitors different rates for final-mile deliveries.

But in a shock ruling the regulator’s report said it “does not believe the universal service is currently under threat from competition” in the direct delivery market — where privateers such as the Dutch vulture Whistl (formerly TNT) carry out collections and deliveries without using Royal Mail’s services at all.

This challenges the notion, identified by both Royal Mail and the Communication Workers Union, that competitors’ cherry-picking of profitable deliveries in well-connected areas is a key concern.

CWU deputy general secretary Dave Ward fumed: “Ofcom is part of the problem, not the solution. It’s astonishing that Ofcom refuses to accept that competitors’ ability to cherry-pick lucrative urban delivery routes is not damaging the sustainability of the USO.

“The government needs to take a closer look at who is regulating the regulator and why it is flatly refusing to do its job in protecting the universal postal service.”

Mr Ward also said Ofcom’s focus on “efficiency” was code for driving down posties’ nego

tiated conditions. “In criticising Royal Mail’s efficiency, Ofcom is preparing the ground for postal workers’ terms and conditions and pay to be dragged down to the level of its competitors,” he said.

A spokesman for Ofcom defended its stance, telling the Star: “We are listening to the views of Royal Mail and other parties regarding competition in the market. We would assess any emerging threat to the service quickly, in the interests of postal users.

“Having analysed the market very closely, we believe that competition at present can provide Royal Mail with a further incentive to become more efficient.

“Continued progress on efficiency is crucial if the universal postal service is to be financially sustainable in the longer term.”

The spokesman refused to comment on the implications for pay and conditions, saying it was a matter for Royal Mail.

Mr Ward said he would “expect Royal Mail to support our call” for a judicial review of the Ofcom decisions. A Royal Mail spokeswoman declined to comment.