Postal review announced

The government has announced a review into the impact of competition on the Royal Mail.

Business secretary John Hutton said the work, to be carried out by former Ofcom deputy chairman Richard Hooper, would look at the impact of liberalisation; new technologies such as email and text messaging; and future trends.

He emphasised that the government was committed to maintaining a universal postal service that met the "changing needs" of the consumer.

Nigel Stapleton, chairman of the postal regulator Postcomm, welcomed the government’s plans to look all aspects of the market and Royal Mail’s performance and structure.

"The introduction of competition and choice has brought direct benefits to business customers, and social customers have benefited from the boost to service reliability prompted by competition and regulation. But the impact of alternative media and other market changes is bringing new challenges."

The Communication Workers Union (CWU) has also welcomed the review and said it would be taking an active role in, highlighting issues such as Postcomm's "disappointing" role.

Secretary general Billy Hayes said: "This review must address the needs of customers, workers and mail businesses to ensure that the UK has an effective and successful publicly-owned postal service and efficient postal sector.

"The future of the postal service is fundamental to the British public and economy and this review is an opportunity that cannot be missed."