EUROPEAN COMMITTEE CALLS ON EC TO PROTECT POSTAL SERVICES TO SCOTLAND'S ISLAND AND RURAL COMMUNITIES

The European Commission was today urged by the Parliament's European Committee to protect postal services to Scotland's island and rural communities.

The move comes in response to the European Commission's decision to consider changes to the Postal Services Directive, which could see an end to uniform postage prices throughout the UK regardless of the distance of delivery.

The text of convener Hugh Henry's open letter to Mr Frits Bolkestein, Internal Market Commissioner, European Commission is as follows:

"I am writing to you to express the concern of the Scottish Parliament's European Committee over the suggested changes to the Postal Services Directive (97/67/EC) and the possible impact this would have on the Post Office within the UK as a whole and Scotland in particular.

Our main concern is that the suggested reduction in both the weight and price limits of the reserved area, from 350 grams to 50 grams and five times the price of a standard letter to 2.5 times respectively, will, to our knowledge, seriously undermine the UK Post Office's ability to provide its high-quality, universal service at an affordable uniform price throughout the UK.

We believe that if the Commission's suggested reductions in the reserved area were implemented, then according to the UK's Post Office, business profits would be virtually eliminated. We are concerned at the impact this may have on its employees.

We have particular concerns also in relation to the impact that such changes would have within the unique social and geographical situation in Scotland. Around one-third of Scotland has a population density of below 100 people per km2. In addition, there are 130 inhabited islands around the coastline. It is clear to the Committee that there is a formidable logistical task in providing much of Scotland with a high quality postal service at a reasonable cost to the customer.

Increased competition in the industry needs to benefit all customers. If the Post Office loses the revenues from large population centres or sizeable customers, this will compromise its ability to continue the principle of universality.

For the above reasons, the cross-party European Committee of the Scottish Parliament supports the UK Post Office's and the relevant Trades Union's suggestion that the weight threshold of the reserved area be reduced from 350 grams to 150 grams only. This should produce continuing, although reduced, profit to the Post Office.

Furthermore, whilst we recognise that reviews will take place in the future we would like to see urgent consideration being given to the unique situation in Scotland before any further liberalisation took place to ensure that the postal service is not endangered. It is felt that this compromise position would fit with the, "balanced step-by-step approach" favoured by the Commission in the proposals announcement.

I look forward on behalf of the Committee to receiving a response to our letter from you in due course."

BACKGROUND NOTES

The European Parliament will make its response to the European Commission's proposals on December 22. In the meantime, Scotland's MSPs and MEPs will be lobbying the Commission and other MEPs to take account of the distinctive nature of the UK's postal service in relation to serving Scotland.