Weir's concern over Royal Mail's judicial review

Mike Weir MP, SNP Spokesperson on Postal Services, has expressed deep concern at the decision of Royal Mail to seek a judicial review of the decision by Postcomm to refuse its application for the introduction of zonal pricing.

Mr Weir had previously lodged an Early Day Motion (EDM) opposing the whole principle of zonal pricing which received widespread cross party support.

Mr Weir said:

"Coming just after the Royal Mail announced that the universal service obligation led to a loss in the last financial year, and in the midst of the independent review of postal services, this is an extremely worrying development.

"Although the original application only referred to business mail, this could potentially lead to an attack on the whole principle of the universal service obligation and universal tariff.

"A huge number of small and medium sized enterprises, especially in rural areas, rely on the Royal Mail, a fact accepted by the independent review.

"If there was to be any threat to the USO it could have a devastating effect on the rural economy.

"Any attempt by the Post Office to tamper with the principal in any way must be resolutely resisted."

Mr Weir, however, welcomed the declaration by Postcomm that, contrary to earlier reports, they would not support the axing of Saturday deliveries.

Mr Weir added:

"I welcome the unequivocal statement by Postcomm that they continue to support the six day delivery. That again is vital to business in rural Scotland."

Note:

The text of Mr Weir’s EDM (No.116), signed by 46 MPs is set out below:

That this House notes the proposals put forward by Royal Mail to introduce a system of zonal pricing for mail delivery; believes that such a system strikes at the heart of the Universal Service Obligation (USO); further notes that Postcomm is minded to refuse the application and congratulates it on this stand; notes, however, that the Royal Mail may re-apply for the introduction of such a system; and calls upon the Government to reiterate its support for the USO and to rule out the introduction of zonal pricing in the future.