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Forums
criticises Ofcom’s decision to give Royal Mail free rein on stamp
prices
UK businesses should brace
themselves for significant increases in the cost of postal services
after the announcement by Ofcom, which paves the way for Royal Mail
bosses to set stamp prices themselves.
The Forum of Private Business has warned that, under the new system,
postal chiefs at Royal Mail will be free to increase the cost of a
first class stamp without limit, but with caps in place for second
class letters and parcels for at least the next 7 years.
Ofcom say charges for second class post will be indexed linked to
inflation with a ceiling for second class stamps of 55p until 2020.
The Forum believes this will almost inevitably lead to first class
charges becoming unaffordable for many small firms, forcing reliance
instead on the far slower second class system.
Under the new model 93% of first class would be expected to arrive
next day, and 98.5% of second within three days.
"We think these changes are bad for business, and will ultimately
cost small firms; the bread and butter users of the postal service;
far more to send items via first and to a lesser extent second class
in the years ahead. If Ofcom thinks it can give Royal Mail these new
freedoms and prices won’t immediately go up, it is deluded. This
will merely prove to be yet another increase in the cost of doing
business for SMEs. It will also result in a postal system where the
bulk of all post will eventually be sent second class. Simple
economics suggests this will, ultimately, force the cost of first
higher as increasingly fewer people use the ‘premium’ service. There
are also implications for rural areas where delivery times are
usually that bit longer. There will always be those customers
desperate to get a mail from A to B in a hurry, and for those there
will be few options but to pay out what will no doubt rapidly become
exorbitant prices. By adopting a ‘the sky’s the limit’ mentality for
first class, there’s a danger it will become a cash cow."
said the Forum’s Chief Executive, Phil Orford.
Ofcom say the central aim of its review was to ensure Royal Mail’s
Universal Service Obligation; which demands a 6 day a week service
for UK customers; is financially sustainable and can be provided
efficiently. The regulator says this will monitored and it retains
the ability to intervene if the new regime fails to safeguard the
universal service and the affordability of mail services.
Added Mr Orford:- "There’s a danger that Ofcom as a regulator
has allowed itself to become something of a toothless dog. Exactly
how far down the path of prices rises would it go before weighing in
and asking Royal Mail to think again? Surely it would have been
better for Ofcom to have more of a direct say in any price increases
rather than relinquishing this power? We will certainly be looking
over the shoulder of Royal Mail to ensure they don’t punish the
wealth creating businesses by above inflation increases. The
quickest way for the Royal Mail to decline further is by pricing
businesses out of their service. The costs of business are already
high. There needs to be some respite not further crude hikes."
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Finale for
anti-crime plays
STUDENTS from Liverpool
schools are involved in a dramatic interpretation of crime and
anti-social behaviour issues.
They are taking part in Act Together, an initiative by Citysafe-Liverpool’s
community safety partnership- and Merseyside Police, in which they
discover more about the impact of crime and anti-social behaviour on
themselves and their communities through drama.
They produce 10 minute dramas based on themes taken from the City
Council’s Young People’s Feelings of Safety Survey. Themes chosen
for this years programme include anti-social behaviour, internet
safety, bullying, road safety, alcohol, dangerous dogs, guns and
knives.
Their plays are performed to their fellow students and a selection
of their feeder primary schools and are seen as a positive way of
addressing community safety issues that concern young people.
The finale for this year’s Act Together will be on Thursday, 29
March 2012, at Broadgreen International School when all the plays
will be performed.
Seven secondary schools are taking part in this year are North
Liverpool Academy, Broadgreen International School, St Julie’s
Catholic High School, Gateacre School, Archbishop Beck, Cardinal
Heenan and Shorefields.
And this year they will have an international audience as among the
audience will be students from Roseto in Italy and Norrkoping in
Sweden who have been involved in a Youth and Democracy Project with
students from King David High School.
"It is very encouraging that Act Together is gaining a wider
audience, even going into Europe. It involves about 6,000 students
and is a graphic way of illustrating the impact that crime and
anti-social behaviour can have on individuals and families. This is
the 5th year of Act Together and it goes from strength to strength.
Because it is based on issues which young people have identified
themselves it really brings homes positive messages about community
safety." said Councillor Ann O’Byrne, cabinet member for
community safety.
Assistant Chief Constable Helen King said:- "Act Together is a
great opportunity for young people to come together and express
through drama how they feel about the community safety issues that
directly affect them. The process enables participants to develop
important skills such as team work and creativity as well as
delivering important messages in a very impactive way. I am sure
that the standard will be as high as ever this year and I would like
to thank all those involved for their hard work."
The schools involved in Act Together choose which theme they want to
use for their play.
They then work with a specialist ‘mentor’ to develop the subject
matter who helps them understand the subject area. The mentors come
from different local agencies who have experience in the theme
chosen by the school.
They work alongside the young people and school drama teacher to
ensure that they fully understand the issues associated with their
chosen topic.
The first Act Together was held in 2008 and has built on its success
since then. |
