Select Committee on Public Accounts Minutes of Evidence


Annex A

SUPPORTING EVIDENCE

  Postcomm welcomes the C&AG's recognition of the approach that we have taken in seeking to operate in an open and transparent way and in undertaking extensive consultation before bringing forward its proposals.

1.  CONSULTATION AND RESEARCH

  In developing its proposals Postcomm has carried out detailed analysis and consultation with stakeholders and interested parties. Consultation was undertaken through two previous consultation documents on competition, workshops, regional roadshows and working groups. In developing and challenging its proposals, Postcomm sought advice from a panel of independent experts established to consider issues relating to competition and safeguarding the universal service.

2.  FINANCIAL ANALYSIS

  Postcomm also looked in detail at the financial impact of competition on Consignia's ability to provide the universal service and at the level of efficiencies that Consignia could be expected to achieve. A summary of the analysis and conclusions is presented in Appendix 1 of the proposals document.

3.  ASSESSMENT OF THE "COST" OF THE UNIVERSAL SERVICE

  Postcomm undertook and published in June 2001 a detailed assessment of the "cost" of providing the universal service. This found that the provision of the universal service was, overall, profitable and that, on the "net avoided cost" basis, the cost to Consignia of providing a universal service was not significant.

4.  EXPERIENCE AND ANALYSIS IN OTHER MARKETS AND COUNTRIES

  Finally, Postcomm has also looked at postal services in all major countries where there is full or partial liberalisation of the postal market, in particular, Sweden, Finland, New Zealand, the Netherlands and Germany. This has provided evidence that even where the market is fully liberalised:

    —  the universal service is not undermined by the opening of the postal market;

    —  the incumbent post office continues to hold on to a major part of the market—well over 90 per cent; and

    —  customers have benefited from the increased efficiency stimulated by competition.

The Postal Services Commission (Postcomm)

February 2002


 
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