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Higher charges for far north 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.”

 

Published on Wednesday 25 January 2012 by David Mason
Last edited on Wednesday 25 January 2012 by David Mason