PARLIAMENTARY EARLY DAY MOTION
POSTCOMM AND POSTAL SERVICES COMPETITION (5 March 2002)

That this House notes with concern that Postcomm is proposing to open up 40 per cent. of Consignia's market for mail under 250 grammes and ú1 to competition on 1st April with full market liberalisation by 2006; further notes that the EU will only start requiring liberalisation of this market in 2003 and then only for over 100 grammes, and that European competitors will therefore be able to cherry-pick the UK postal market without reciprocal opportunities for Consignia; recalls that the National Audit Office Report on Postcomm and Postal Services highlighted the risks to the universal postal service in the UK from the Regulator rapidly opening the postal market to competition, as well as noting that the RPI-X price control may not be wholly appropriate in this instance; notes that Postcomm's consultation period is only six weeks; is aware that Consignia is losing ú1.5 million a day and is already facing job cuts of 30,000; urges that consultation be extended until the end of May; and believes that postal market liberalisation should only occur in the same way and at the same pace as is proposed for the EU.

Sponsored by:
Geraint Davies (Independent)