Menu
10/02/2006
Missing post costs Royal Mail £11.7m
Postal services watchdog, Postcomm, is proposing to fine Royal Mail £11.7m over "serious breaches" of its licence obligations to protect the mail and deliver it on time.
Launched in 2004, the Postcomm review found that important features of Royal Mail's procedures were not being applied across the business. The regulator noted that the most significant weakness was the poor management of the recruitment and training process for non-contract staff.
In addition the framework and information systems that Royal Mail had put in place to prevent the loss, theft or damage of mail were not operating effectively. These weaknesses "significantly reduced the company's ability to protect customers' mail," said Postcomm.
Postcomm Chairman Nigel Stapleton said: "A regulator's first duty is to protect the interests of customers. Customers are entitled to expect that when they post mail it will reach its destination. But during 2004/05, around 14.6 million letters, packets and parcels in Royal Mail's care were lost, stolen, damaged or interfered with.
"A Postcomm review uncovered some serious shortcomings during 2004/05 in Royal Mail's application of its procedures for properly protecting the mail - what we call mail integrity."
Royal Mail, which faces a £11.38 million fine for a failure to meet its obligations to protect the mail; and £270,000 fine for poor mail delivery performance across three London postcode areas, described the fines as "unreasonable."
However, Postcomm said it was encouraged that Royal Mail appeared to have improved substantially its performance in both these areas of licence breach and had reduced the proposed penalty by 20%.
The regulatory body said it would continue to monitor the company to ensure that these improvements are maintained.
Under the terms of the Postal Services Act 2000, Royal Mail has an opportunity to make representations to Postcomm on the proposed penalties.
(SP/KMcA)
Launched in 2004, the Postcomm review found that important features of Royal Mail's procedures were not being applied across the business. The regulator noted that the most significant weakness was the poor management of the recruitment and training process for non-contract staff.
In addition the framework and information systems that Royal Mail had put in place to prevent the loss, theft or damage of mail were not operating effectively. These weaknesses "significantly reduced the company's ability to protect customers' mail," said Postcomm.
Postcomm Chairman Nigel Stapleton said: "A regulator's first duty is to protect the interests of customers. Customers are entitled to expect that when they post mail it will reach its destination. But during 2004/05, around 14.6 million letters, packets and parcels in Royal Mail's care were lost, stolen, damaged or interfered with.
"A Postcomm review uncovered some serious shortcomings during 2004/05 in Royal Mail's application of its procedures for properly protecting the mail - what we call mail integrity."
Royal Mail, which faces a £11.38 million fine for a failure to meet its obligations to protect the mail; and £270,000 fine for poor mail delivery performance across three London postcode areas, described the fines as "unreasonable."
However, Postcomm said it was encouraged that Royal Mail appeared to have improved substantially its performance in both these areas of licence breach and had reduced the proposed penalty by 20%.
The regulatory body said it would continue to monitor the company to ensure that these improvements are maintained.
Under the terms of the Postal Services Act 2000, Royal Mail has an opportunity to make representations to Postcomm on the proposed penalties.
(SP/KMcA)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
17 May 2005
Royal Mail workers benefit from record profits
Royal Mail workers are set to receive bonuses of £1,074, following the announcement of record profits of £537 million for the year 2004-05. The national mail service reported the record profits today – an increase of 144% on the £220 million profits announced in the last financial year.
Royal Mail workers benefit from record profits
Royal Mail workers are set to receive bonuses of £1,074, following the announcement of record profits of £537 million for the year 2004-05. The national mail service reported the record profits today – an increase of 144% on the £220 million profits announced in the last financial year.
17 November 2005
Royal Mail profits boosted by parcels
Royal Mail has reported a rise in profits, despite a seeing a fall in earnings in its letter business. The group reported a 20.5% increase in operating profit to £159 million for the first half of 2005/06 – a £27 million improvement on the same period the previous year.
Royal Mail profits boosted by parcels
Royal Mail has reported a rise in profits, despite a seeing a fall in earnings in its letter business. The group reported a 20.5% increase in operating profit to £159 million for the first half of 2005/06 – a £27 million improvement on the same period the previous year.
27 February 2004
Royal Mail puts in 'poor' performance
The Royal Mail has performed poorly and is "unlikely" to meet any of the 15 minimum performance targets set out in its licence, according to the mail watchdog Postwatch. Postwatch said that Royal Mail’s third quarter performance was badly affected by unofficial industrial action, and would not meet its targets.
Royal Mail puts in 'poor' performance
The Royal Mail has performed poorly and is "unlikely" to meet any of the 15 minimum performance targets set out in its licence, according to the mail watchdog Postwatch. Postwatch said that Royal Mail’s third quarter performance was badly affected by unofficial industrial action, and would not meet its targets.
07 December 2005
Price of first class stamps to increase
The prices of stamps are set to rise next year, following an agreement between Royal Mail and industry regulator Postcomm. The deal will see the price of first-class stamps increase by 2p to 32p next year and second-class stamps will increase from 21p to 22p.
Price of first class stamps to increase
The prices of stamps are set to rise next year, following an agreement between Royal Mail and industry regulator Postcomm. The deal will see the price of first-class stamps increase by 2p to 32p next year and second-class stamps will increase from 21p to 22p.
27 April 2004
Royal Mail sizes up ditching weight price policy
Royal Mail has announced new pricing plans, which would allow it to price mail by size rather than weight. The state-owned operator claimed that the changes were needed, so that it could continue to provide a ‘one-price-goes-anywhere’ postal service and has called on UK postal regulator Postcomm to give the go-ahead for the new policy plan.
Royal Mail sizes up ditching weight price policy
Royal Mail has announced new pricing plans, which would allow it to price mail by size rather than weight. The state-owned operator claimed that the changes were needed, so that it could continue to provide a ‘one-price-goes-anywhere’ postal service and has called on UK postal regulator Postcomm to give the go-ahead for the new policy plan.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
