NO POSTCODE LOTTERY ON POSTAL CHARGES - Jenny Randerson

12.20.35pm BST (GMT +0100) Thu 5th Apr 2007

Cardiff Central AM Jenny Randerson, has expressed her concern at Royal Mail's plans to increase business mail charges for delivery in rural areas and is concerned that this could be the thin end of the wedge and affect urban customers as well.

Royal Mail have applied to industry regulator Postcomm to introduce zonal pricing, with the intention of charging large mailers more for delivery in rural and less populated areas.

Jenny said:" I believe in a universal delivery charge system, and have real concerns about the impact these plans could have. It could have a negative impact on the economy, in terms of business-to-business delivery - a company is not going to want to have an outlet in a rural area if they know that getting post to them is going to cost them more. I hope that when Postcomm consider these proposals, they fully assess the impact on those in rural areas.

"Cardiff should not be complacent: Cardiff is a long way from London - if this is agreed how soon before we have charges based on distance?

Notes:

•Royal Mail have submitted an application to Postcomm to be allowed to vary certain business tariffs according to the geographic location of the recipient of the mail. Broadly, this would involve charging large mailers different rates depending on where in the UK their mail is delivered. It would not apply to products that are part of the universal postal service (stamped or franked mail, Mailsort 1400 and Cleanmail). If approved, these plans would see an increase in prices charged for business mail delivery in Greater London and rural/ less populated areas, whilst prices for delivery in other areas of higher population density would fall (currently almost all bulk mail for large mailers is charged at a geographically uniform price). Royal Mail's licence allows for these changes to be introduced, unless Postcomm can find specific and tightly defined reasons for rejecting their plans. Postcomm have nine months to make a decision, and intend to publish a consultation document in July, setting out their provisional conclusions.

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