New Zealand Post

On 28 March 2008, New Zealand Post introduced a new pricing in proportion system for all standard domestic mail. Similar to the system recently introduced in the UK this means letters and parcels sent within New Zealand are now priced in direct proportion to their size and weight. Previously parcels have been priced mainly on weight.

Although similar the systems are far from identical. The sizes and dimensions of the new system can be viewed here.

Motivations behind the change are very similar to that of the UK and reflect the worldwide drive for cost reflective pricing among incumbent postal operators. Previously some larger sized items of mail have been the same price to send as smaller items and this has not reflected the cost of handling them. As most of the mail that passes through our network is of a smaller size, it is fair that the postage price is in proportion to the size and weight of the item.

• larger items require manual processing (not machine processing)

• larger items require double handling by both Mail Sorters and Posties
• larger items are more costly to transport due to size
(New Zealand Post)

A further parallel with the UK can be seen with many standard items remaining the same price although New Zealand has not introduced a grace period for surcharging it will consider the change when assessing under paid items. The postage price for most of the standard domestic letters that go through the network remains unchanged at $0.50 because most of these letters are of a smaller size. (New Zealand Post)

However, a more selective brand of PiP is employed in New Zealand with the more lucrative bulk mail products escaping the new system. Bulk mail products (VolumePost, GoFlexible and PrintPost) and international products are not changing. (New Zealand Post)

We would like to learn of your experiences with Pricing in Proportion that was introdcued in the UK August 2006 or whether you are aware of any other similar systems being employed worldwide.

Changes to collection plates

Royal Mail is making changes to collection plates as a result of two separate initiatives, namely:

SUNDAY AND BANK HOLIDAY COLLECTIONS - CHANGES TO COLLECTION PLATES

Part of the agreement given by Postcomm to Royal Mail’s request to stop Sunday and Bank Holiday collections was for Royal Mail to amend the information on the collection plates.

Postwatch has been advised by Royal Mail that the removal of all references to Sunday and Bank Holiday collections to its collection plates will be completed by 25 February.

CHANGING COLLECTION PLATES TO SHOW FINAL COLLECTIONS AS CLOSE TO 12.00 MIDDAY (MONDAY – FRIDAY) AS POSSIBLE

In response to Postcomm’s Decision Document on its review of Royal Mail’s collection and delivery times Royal Mail has undertaken a review of collection points that have a collection time before 12:00 midday (Monday – Friday) to move as many back to midday or later where it was reasonably practical and make economic sense to do so. However, there will be some instances where it may not be possible in every instance due to practical and commercial restraints (further details are attached).

Royal Mail has advised us that all reviews are due to be completed by end of February/early March.

Another competitor to Royal Mail

The postal regulator Postcomm is minded, subject to consultation, to grant a licence to a company called Document Outsourcing Limited. It believes that the proposed licence will further the interests of postal users by promoting competition between postal operators and that it will have no adverse effect on the provision of a universal postal service in the United Kingdom.

Postcomm has just started a 30-day consultation on the proposed grant of a postal operator's licence to Document Outsourcing Limited.

Under the licensing framework that took effect from 1 January 2006, and was amended in January 2008, the licence would:

* allow Document Outsourcing Limited to provide all types of postal service;
* be issued for a rolling ten year period; and
* require the company to comply with codes of practice on mail integrity (safety and security of the mail) and common operational procedures (designed to ensure the multi-operator market works well in practice).

Recorded Signed for, or not?!

Royal Mail's Recorded Signed for items travel with its ordinary 1st and 2nd Class mail but should offer a signature at the point of delivery, hence the additional 70p postage fee required by Royal Mail. Customers should also be able to confirm that the item has been delivered on Royal Mail's website or through its Customer Services Centre.

Royal Mail has been undertaking some work to improve this service but Postwatch still has a number of concerns not the least to do with the fact that Posties do not always obtain signatures at the point of delivery.

Would you say you've received a satisfactory Recorded Signed for service or is there more to be done? Postwatch would like to hear your views.

New postal licence framework

Postcomm, the regulator for postal services, today announced changes that will simplify procedures for licensing non-universal service operators. (The universal service is the geographically uniform postal service that is provided by Royal Mail.)

The changes described in today's document - Amendment of the 2006 licensing framework - include a reduction in application fees from £1000 to £50, which it is hoped will help encourage small businesses to enter the market, and the removal of the licence requirement on all licensees to have guarantees or contractual arrangements in place to ensure the delivery of mail if an operator fails so that, in future, other operators can respond directly to what the market demands, rather than to regulatory requirements.

"Right Royal Mail"

Postwatch wishes a Merry Christmas and Happy New Year to all visitors to this blog and offers you this short poem to entertain you over the festive season:

Right Royal Mail

In hail and wind and sun and snow
Just watch our little postie go
Delivering letters for you and me
Before he gets home for his tea.

A bill for water, a bill for gas
Electrics bill and then at last
There is a postcard from a friend
I’ll leave that ‘till the very end

I’ve won a prize, the letter reads
Just ‘phone this number there’s no need
To get yourself into a frenzy
The voice on the line is never ending.

But what’s this here, I’d like to know
He’s brought me this through hail and snow
A special gift, a new appeal
Would I leave my earnings in my will?

Why can’t we just have letters from
Your sister, uncle, auntie, mum
Every mailing seems to bring
A pile of rubbish, ah, but still

It’s good to see our postman friend
Who carries on to the bitter end
And while we’re tucked up warm in bed
He’s sorting out our post, instead.


Composed by: Carol Anne Russell

Royal Mail losses

Whilst announcing forthcoming increases in the price of its stamps Royal Mail has again stressed that it will continue to lose money on every stamped item it delivers. Customers considering Royal Mail’s point might conclude the best way to help the company is to switch to other forms of communication so as to reduce losses on stamps. This would not in fact be a helpful reaction but might help the company to concentrate on positive rather than negative messages to its customers, who have endured a less than satisfactory postal service this year.

Compensation consultation on delay, loss and damage - second stage

Postcomm issued a consultation in November 2006 asking for views on a number of key issues in relation to the current compensation arrangements for postal packets that have been lost, damaged or delayed.

Royal Mail’s license requires it to have a “standards of service compensation scheme” for compensating users of postal services for delayed mail.

The second stage of this review has now been published, and Postcomm have provided a list of their proposals for both retail and bulk mail compensation.

The key proposals for the retail schemes for delay and for loss and damage are as follows:

• where the item was posted with Royal Mail, there will be compensation (a minimum of a book of 6 x 1st class letter stamps) for first time claimants for loss, damage and delay where an item has no intrinsic value or where a claimant cannot provide proof of posting;

• loss and damage to items with an intrinsic value, with proof of posting with Royal Mail and proof of value, will entitle customers to a postage refund (a minimum of a book of 6 x 1st class stamps) plus compensation for actual loss up to a maximum of the market value of the item or 100 x 1st class letter stamp at the first weight step1, whichever is the lower;

• the £5 and £10 payments for delay and substantial delay will be removed, except for Special Delivery Next Day. The substantial delay category will be removed for non-Special Delivery items;

• compensation for delayed retail mail will become payable one day earlier than at present, i.e. 3 working days after the due date;

• redirected mail will be eligible for compensation for delay; and

• users of the Articles for the Blind service will be able to claim compensation for loss, damage and delay.

The current compensation scheme for delay, as determined by Postcomm in October 2003, includes compensation arrangements for senders of mail using bulk mail services. Bulk mail customers currently receive compensation in the form of an annual rebate of a percentage of the money they have paid to Royal Mail, depending on Royal Mail’s annual performance against its quality of service targets for bulk mail.

Postcomm proposes to remove bulk mail from the compensation scheme for delay with effect from 1 April 2009. Postcomm considers that the continuation of a regulated compensation scheme for bulk mail may distort customer behaviour and act as a barrier to switching.

The Access Agreements sets a “Service Standard” of 95% for next day delivery for the conveyance and delivery of access mail by Royal Mail. If Royal Mail were to introduce its own bulk compensation scheme for customers who use its bulk mail products but who do not have a Downstream Access Agreement, it would have to ensure that it did not show those customers undue preference compared to customers or operators with an Access Agreement. It would also have to ensure that it did not unduly discriminate against any type of customer or access operator. Postcomm considers that this will be an incentive for Royal Mail to develop an Access compensation scheme if it develops one for customers who do not use Access.

The closing date for this consultation is 18 February 2008. Please click here to read the consultation in full.