Postal inquiry fuels top-level bust-up

The relationship between the UK postal firms would make even a Relate counsellor baulk after claims Royal Mail bosses have refused to even sit in the same room as their rivals during the Parliamentary probe into the market.
According to Sky News, Royal Mail has demanded that it should not be forced to give evidence during the same session as Whistl (formerly TNT Post) and UK Mail in front of the Business, Innovation & Skills Select Committee.
However, MPs have refused to bow to the company’s demands and Royal Mail chief executive Moya Greene (pictured, left) will now appear before the Committee on November 26, alongside Whistle boss Nick Wells (right). Sky News quotes one source: “This decision might make good theatre but it won’t make for good analysis of the issues.”
It is not known what has sparked the latest hostilities, although the relationship between the two has been strained ever since Whistl expanded its end to end deliveries. Royal Mail has been demanding an Ofcom probe for months, and even drafted in former government advisor Richard Hooper to back its cause.
Whistl’s final mile delivery service, which began with trials in Liverpool and West London in 2012, has now been rolled out to other areas of London, as well as Manchester.
At the time the Parliamentary inquiry was announced, Adrian Bailey, chair of the committee, said: “We have had a number of representations from Royal Mail, and others, warning that TNT can cherry-pick profitable routes because they don’t have a Universal Service obligation. If it is under serious threat, we will see what we can do to protect it.”
Ofcom is expected to decide whether to bring forward its assessment of the market after the Parliamentary review. A spokesman said: “Our own evidence clearly shows that the [Universal] Service is not currently under threat.
“We are listening to the views of Royal Mail and other parties regarding competition in the market. We would assess any emerging threat to the service quickly, in the interests of postal users.”
Late last month, Royal Mail scored a major victory over Whistl, when the High Court threw out a bid to have the former state-owned postal operator’s VAT exemption removed.
In a long running battle against HM Revenue & Customs, Whistl argued that the exemption contravened EU law, but the High Court ruled that it was compatible.