PostComm plan could be death of Consignia

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The Independent Online

Consignia could be put out of business because of the way the postal regulator is planning to open up the Royal Mail's monopoly to competition, an influential Commons committee warns today.

The cross-party Public Accounts Committee accuses Postcomm of "decision making in the dark" and says the regulator's actions could mean the death of the universal service that guarantees deliveries to all homes in the country at a single price.

The comments are the most direct criticism yet of Postcomm from an independent body and increase the likelihood of the regulator watering down its proposals later this month.

Edward Leigh MP, the Conservative chairman of the committee, said: "Postcomm have a very difficult task to perform. They have to increase competition, set the price for stamps and ensure the universal service. This task involves delicate management of a conflict of priorities that may be beyond them and which could even result in Consignia going out of business.

"The postal service that we have always taken for granted is under threat. Soon, most of us may not receive our delivery early in the morning."