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Displaying 1694 contributions
Economy and Fair Work Committee
Meeting date: 13 September 2023
Claire Baker
That brings us to the end of this morning’s session. I thank all the witnesses for participating in our first evidence-taking session on the bill. If you would like to contact the committee on anything further following this session, please feel free to contact the clerks.
10:52 Meeting continued in private until 11:31.Economy and Fair Work Committee
Meeting date: 13 September 2023
Claire Baker
I invite Kevin Stewart for a supplementary.
Economy and Fair Work Committee
Meeting date: 28 June 2023
Claire Baker
I have a couple of questions. In 2019, you had a £1.5 million fine, which was to do with first-class-post delivery failures; I understand that part of the current Ofcom investigation is to do with performance; and, indeed, you recognised at the start that there was disappointment with current performance. When do you see us returning to pre-pandemic performance under the universal service obligation? I know that the Ofcom inquiry is on-going, and I do not think that a decision has yet been made whether a fine will be applied this time. When do you see pre-pandemic performance returning?
Economy and Fair Work Committee
Meeting date: 28 June 2023
Claire Baker
What about financial incentives for prioritising parcels?
Economy and Fair Work Committee
Meeting date: 28 June 2023
Claire Baker
I will mention two issues that are linked to that. First, if you have to decide to prioritise parcels over letters, do you look at the type of letters that are there? There is a concern about hospital appointments. I recognise that a lot of what is posted is birthday cards and stuff like that—social post—but is any distinction made between letters that have to reach people in time and other letters?
Secondly, are penalties attached to parcels? Is there a financial incentive to prioritise them over letters?
Economy and Fair Work Committee
Meeting date: 28 June 2023
Claire Baker
Consumer Scotland is also doing a short investigation into Royal Mail. We had its representatives before us a few weeks ago; it is a new organisation, and I understand that it is considering Royal Mail services from a consumer point of view. I am not sure when that investigation is going to conclude, but it has shared with us some information, which I think is all in the public domain, on postcodes that are performing below the UK average.
We have talked about some of those areas today, but there are other ones that match them, and the area that I represent contains some of those postcodes that are below the UK average. Are those within Scotland affected by some of the issues that we have already discussed such as remoteness and difficulties in reaching areas? Are there other factors that explain why particular postcodes come up? The ones that are below average are DD, FK, IV, KA, PA and PH, while KY and ML are average. We have ones that are above average, too, but they are still not hitting the target that has been set.
Economy and Fair Work Committee
Meeting date: 28 June 2023
Claire Baker
As I said, we put out a call for evidence. The views reflected that people value Royal Mail and recognise the importance of the universal service, particularly for parts of Scotland. I am sure that members will touch on those issues.
We are not the first parliamentary committee to take evidence on Royal Mail; recently, Royal Mail appeared in front of the Business, Energy and Industrial Strategy Committee, which has led to an Ofcom inquiry into parcel deliveries. In evidence that we received, people said that they felt that service in some areas had fallen short of the current standards and that deliveries were happening on only a few days a week. That is a familiar story that we hear from our constituents; they feel that their letters arrive in a bundle and that parcels are prioritised over letters.
Ofcom looked at that during the pandemic and recognised that there was a legitimate reason why Royal Mail prioritised parcels in that period. However, the concern is that that has continued as a practice. Will you give us an update on the work that Ofcom has done? Has such a picture developed in Scotland?
Economy and Fair Work Committee
Meeting date: 28 June 2023
Claire Baker
Our next item of business is an evidence session with Royal Mail. Ahead of the session, the committee put out a call for evidence and received a number of written submissions. I thank everyone who submitted their views to inform this morning’s session.
I welcome from Royal Mail Ross Hutchison, the operations director for Scotland, and Ricky McAulay, the operations development director. As always, I ask members and witnesses to keep their questions and answers as concise as possible. I invite Ricky McAulay to make a short opening statement.
Economy and Fair Work Committee
Meeting date: 28 June 2023
Claire Baker
I would also like to ask about the price of stamps. I think that I am correct in saying that it is Royal Mail that sets the price of a first-class stamp, whereas the price of a second-class stamp is still capped by Ofcom. At the moment, it costs £1.10 to send a standard first-class letter, whereas it costs 75p to send a second-class letter, which means that it is 35 per cent—or more than a third—dearer to send a letter first class. It seems that the price of stamps has increased quite dramatically. Do you think that the increase in price might be one of the factors in the reduction in the volume of letters? Particularly at Christmas, when we expect people to buy a high volume of stamps, there is a question whether £1.10 is still affordable.
We recognise that, in the UK, we have a very valued service, with a universal service obligation that other countries do not have. We also recognise that you reach every point of the UK, which is really important and is valued by people, too. However, there has been quite a big increase in the cost of a service that people regard as an everyday service, and the concern is that it has now become a special service that they use only on special occasions, because they are not prepared to pay the high cost. What consideration is given to such matters when you make decisions on the price of first-class stamps?
Economy and Fair Work Committee
Meeting date: 28 June 2023
Claire Baker
But if it is a card for a special occasion, that could take five days. It is recognised that second-class delivery is slower. I know that three days is the target, but it seems to be the case that second class is now quite a bit slower than first class.