Competition for Royal Mail - 'A good thing for customers'

12.58.21pm UTC (GMT +0000) Fri 18th Feb 2005

Commenting on the news that the UK's postal services market is to be fully liberalised 15 months earlier than planned, Malcolm Bruce, Liberal Democrat Shadow Secretary of State for Trade and Industry and MP for Gordon said:

"In the face of viable competition the choice will be a simple one for Royal Mail: improve performance or lose customers. In a competitive market Royal Mail has a good chance of retaining its dominant position, but it is right that this is achieved through good performance instead of a centuries-old monopoly.

"Royal Mail will have to become much more efficient if they are not to fall victim to cherry-picking by competitors. They will also need to invest in technology to ensure they are competitive and able to deal with restrictive practices such as the wildcat strikes which have been so damaging in the past. In the new climate of competition this could lead to an accelerated loss of jobs.

"The priority of the regulator will be to ensure the introduction of competition does not jeopardise the universal service obligation or erode the provision of postal services to remote and rural areas."