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| Version 1 | Version 2 |
|---|---|
| Mail competition is 'no benefit' | Mail competition is 'no benefit' |
| (10 minutes later) | |
| The liberalisation of the UK postal service has produced "no significant benefits" for both households and small businesses, a report has said. | The liberalisation of the UK postal service has produced "no significant benefits" for both households and small businesses, a report has said. |
| That is the initial finding of an independent review of the UK postal sector commissioned by the government. | That is the initial finding of an independent review of the UK postal sector commissioned by the government. |
| It warned there was now a threat to the Royal Mail's financial stability. | It warned there was now a threat to the Royal Mail's financial stability. |
| The Royal Mail's 350-year monopoly ended at the start of 2006, when other licensed operators were given the right to collect and deliver mail. | The Royal Mail's 350-year monopoly ended at the start of 2006, when other licensed operators were given the right to collect and deliver mail. |
| 'Untenable' | 'Untenable' |
| The independent panel warned that the "substantial threat" to the Royal Mail's financial security threatened the universal service - the collection and delivery to all UK addresses. | The independent panel warned that the "substantial threat" to the Royal Mail's financial security threatened the universal service - the collection and delivery to all UK addresses. |
| Maintaining the universal service is at the heart of this review - ensuring collection from pillar boxes and post offices and delivery to all addresses The report panel | Maintaining the universal service is at the heart of this review - ensuring collection from pillar boxes and post offices and delivery to all addresses The report panel |
| As a result, the independent panel - which will produce its full report in the summer - said the continuing "status quo is not tenable". | As a result, the independent panel - which will produce its full report in the summer - said the continuing "status quo is not tenable". |
| "The policies needed to establish a sustainable future will be the focus of our report later this year," they said. | "The policies needed to establish a sustainable future will be the focus of our report later this year," they said. |
| While the initial report said homes and small firms had not gained from the increased competition, it said large companies had "seen clear benefits from liberalisation - choice, lower prices and more assurance about the quality of the mail service". | While the initial report said homes and small firms had not gained from the increased competition, it said large companies had "seen clear benefits from liberalisation - choice, lower prices and more assurance about the quality of the mail service". |
| REPORT'S KEY FINDINGS Royal Mail's financial security is now at threatCompetition has offered no benefit for homes and small firmsBig companies have gained from more bulk mail competitionRoyal Mail has no competition in 'final mile' delivery | |
| It says these large firms have benefited from the big growth in competition in the bulk mail sector - postal firms that collect, sort and transport bulk mail before handing it over to the Royal Mail for the final delivery. | It says these large firms have benefited from the big growth in competition in the bulk mail sector - postal firms that collect, sort and transport bulk mail before handing it over to the Royal Mail for the final delivery. |
| Yet at the same time, the report found that the Royal Mail still had "virtually no competition" in the delivery of addressed letters over the "final mile" to letterboxes. | Yet at the same time, the report found that the Royal Mail still had "virtually no competition" in the delivery of addressed letters over the "final mile" to letterboxes. |
| "Maintaining the universal service is at the heart of this review - ensuring collection from pillar boxes and post offices and delivery to all addresses," said the report. | "Maintaining the universal service is at the heart of this review - ensuring collection from pillar boxes and post offices and delivery to all addresses," said the report. |
| The independent review panel was appointed by the Department for Business, Enterprise and Regulatory Reform. | The independent review panel was appointed by the Department for Business, Enterprise and Regulatory Reform. |
| Last year Royal Mail announced a programme of changes to pay and working practices which it said were essential to modernise the service and enable it to compete more effectively. | Last year Royal Mail announced a programme of changes to pay and working practices which it said were essential to modernise the service and enable it to compete more effectively. |
| However this led to a strike by Royal Mail staff and a bitter dispute which, although now resolved, is estimated to have cost Royal Mail more than £200m. | However this led to a strike by Royal Mail staff and a bitter dispute which, although now resolved, is estimated to have cost Royal Mail more than £200m. |