Ofcom must review postal competition — Carmichael

Northern Isles MP Alistair Carmichael has called on Ofcom to review postal competition to tackle companies who “cherry-pick” cheaper delivery routes.

His comments come after the Royal Mail CEO Moya Greene highlighted the problems faced by the firm as private sector delivery companies exclusively deliver urban mail routes, undercutting the Royal Mail.

Speaking yesterday, Wednesday, Mr Carmichael said: “The warning issued today by the Royal Mail must be taken seriously by Ofcom.

“The 2011 Postal Services Act awarded Ofcom with powers that they never had before to protect the Universal Service Obligation by charging a levy to the companies who cherry-pick more lucrative areas.

“Ofcom have a duty to move forward with a review of the postal market and see whether or not to use these new powers.”

Mr Carmichael added: “This is not a consequence of privatisation. It is a consequence of the postal market being opened up to full competition which has been the case for 10 years.

“The SNP claims to be defending a re-nationalised Royal Mail but we know that these claims are hollow. Last year they were forced to admit that they had diverted £24 million from the Royal Mail to private provider TNT. I would advise them to send a note-to-self to do better. But this would just add to the profits of TNT.”