WEIR WELCOMES CONCLUSIONS OF REPORT ON ZONAL PRICING 

Angus MP Mike Weir has welcomed  a report from Postcomm on the reasons they propose to reject Royal Mail’s application for zonal pricing of mail deliveries.

Mr Weir had raised the matter with the Minister and the Regulator as he was concerned that the proposal would impact seriously on mail services in rural areas of Angus.

“Under the terms of the Postal Services Act 2000 the independent regulator Postcomm and the consumer body Postwatch oversee postal sector reforms but the UK government must continue to take a close interest in the future of postal services in our rural areas, particularly as this remains a matter reserved to Westminster.”

“Postcomm has issued a consultation document as to why they propose to reject the proposal. The report concludes that “We have concluded that the proposed pricing structure would introduce discrimination in terms of pricing between one of the five zones and another” ,In other words they have accepted that it effectively breaches the universal service obligation , the key point that I had raised with them.”

“Zonal Pricing would be a disaster for rural areas and seriously impact on postal services, which are already under threat by post office closures and withdrawal of traditional services such as delivery of newspapers.”

“I very much welcome the report and the reasoning behind it. This will hopefully stop in its tracks attempts to introduce zonal pricing.”