Fury at Ofcom proposal to allow Royal Mail to charge more for Highlands' delivery
Businesses and residents in the far north may be faced with additional first class mail costs if Ofcom’s proposals to limit the Universal Service Obligation to second class services only is given the green light.
It would mean that whereas at present, Royal Mail are obliged to charge the same rate for delivering mail across the UK, they could now hike up charges for a first class service to the Highlands, according to the Federation of Small Businesses (FSB).
And this comes at a time when there is uproar at the amount many carriers add as a surcharge when delivering to the far north.
Hamish Fraser, the Chair of the FSB’s Highlands & Islands Region said today: “I am appalled that Ofcom is considering this move.
“Not only is it possible that the cost of second class stamps will increase by over 50%, from 36p to 55p, but no restrictions are being proposed either on the cost of first class and other Royal Mail delivery options in general, or to ensure that the same prices are charged uniformly across the whole of the UK.
“In short, the Royal Mail will be permitted to charge more for its first class and other delivery services to remote rural areas like the Highlands & Islands than it does in heavily populated urban areas in the south.
“It is our region’s many small businesses which struggle to eke out livings in very difficult circumstances that keep communities viable. Life is tough enough without government placing yet another unnecessary financial burden on their shoulders.
“Moreover, this move comes at a time when the FSB is already fighting the unfair charges that southern suppliers make to deliver goods to the Highland mainland and surrounding islands using commercial carriers.
“One of our main arguments is that if prices must differ, suppliers should at least offer a Royal Mail alternative on the basis that its prices are well understood and universal. If the Royal Mail is permitted to behave in the same way as other commercial carriers then small businesses really will suffer.”
Rob Gibson, SNP MSP for the Caithness, Sutherland and Ross has branded the proposals “regressive”, and said he feared for small businesses in the Northern counties.He said the Royal Mail were penalising rurality as it transpired that first and second class postage tariffs are set to rocket for remote and rural areas.He continued: “These are regressive proposals which will hit small businesses and rural areas like ours the hardest. This will undermine the same-cost-everywhere system that has been the bedrock of the Royal Mail service since the introduction of the penny post in 1840.“These proposals will see Ofcom define the universal service as the current second class service, however the price of postage is still set to rise substantially. It is clear that small businesses will no longer be certain to have access to a first class service which is essential here in the North. I do fear for the damage this will cause in our communities.“It has also transpired that Royal Mail will be able to charge what it likes for the first class service, which is further worrying news for our small businesses, especially since Royal Mail will be under no obligation to charge the same first class price throughout the country leaving it open for them to charge higher prices to deliver to more rural or remote locations.“Such a situation will also make it much more difficult for small businesses to set up and operate in more rural locations, setting back attempts, which will have a very negative impact on attracting business to our area. "I will be writing to Ofcom this week to express my deep concern at this news, and the very real fears expressed to me by small business owners in the North. We must not be penalised for rurality.”
