Battle grows over postal hikes

Royal Mail takes £24m DM hitDM printers and mailing houses are joining the fight against Royal Mail’s proposed price hikes, already dubbed “outrageous” by DMA chiefs, as the January 2011 deadline looms for the end of Postcomm’s consultation.
DMA head of postal affairs Alex Walsh claims the best chance the industry has of overturning the proposal is to collect evidence from clients of what effect the increases would have on their mailing strategies.
Under the proposals, bulk mail users could face price rises of up to 19 per cent, while downstream access (DSA) providers will be charged an extra 15 per cent by Royal Mail.
Postcomm has said that it is “minded to accept Royal Mail’s request” and the only hope of reversing that decision is to submit sufficient evidence of the potential harm the price rises will cause ahead of the January cut-off.
Last month, speaking exclusively to DecisionMarketing, Walsh said: “Business customers appear to be paying the price for Government plans to make Royal Mail attractive to potential buyers. Some of the proposals could even see bulk mailers become liable to pay VAT – which would add another 20 per cent on top of the 19 per cent price rise. This is outrageous and we will be doing everything we can to ensure it doesn’t go through.”

Related stories:
Industry outrage at bulk mail hike
Rival post costs Royal Mail millions

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