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Royal Mail still not delivering for small businesses

FSB

Small businesses are still not receiving an adequate service from UK postal operator Royal Mail,according to their representative body.


In its response to the consultation ‘Review of developments in the postal market and RoyalMail since 2008′, the Federation of Small Businesses (FSB) said it was “disappointed that thesituation with Royal Mail remains the same as in 2008, and that the same key issues highlightedthen are still prevalent now”.


In a survey of more than 1,200 members of the FSB-ICM ‘Voice of Small Business’ panel, theFSB found that 94% of respondents want a UK-wide postal service and six in 10 (59%) want tocontinue to receive mail deliveries six days a week.


However, the FSB said several problems diagnosed two years ago needed urgent action,including:  a new regulatory regime to be put in place; no more lost days due to strikeaction; part-privatisation to be announced quickly: other FSB research shows that a quarter (27%)of small businesses would consider part-privatisation as a way forward to saving the Royal Mail andif it meant that no more Post Offices would be closed; plans to deal with the pension deficit, toenable Royal Mail to function to its fullest potential.


FSB also renewed calls for a Post Bank – FSB research shows that 38% of members would leavetheir current bank for the Post Bank.
The federation said that only by expanding the Post Office’s financial services would itsnetwork become financially viable.


Clive Davenport, Trade and Industry Chairman for FSB said:  “Two years ago, the Hooperreport clearly stated that the Royal Mail and the postal service needed serious reforming to ensurethat it is sustainable and provides the service small businesses and consumers deserve.
“Small firms are severely let down by the lack of business services available and are notprovided with a fully operational service. The government must commit to the importance ofsustaining local communities and must step up and support Royal Mail and the Post Office Network bycreating a Post Bank.”


In response, a Royal Mail spokesman told CEP-Research: “We recognise the importance of smallbusiness to Royal Mail and are absolutely committed to maintaining and improving our quality ofservice as well as developing new tools and products aimed specifically at assisting smallbusiness.”


The FSB promote the interests of its 213,000 members, who are either self-employed or runtheir own businesses.

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