Written question asked by Andrew Dismore (Labour) on Monday, 8 November 2004, in the House of Commons. It was due for an answer on Monday, 15 November 2004. It was answered by Gerry Sutcliffe (Labour) on Monday, 15 November 2004 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what estimate she has made of the cost to businesses of adapting or purchasing new franking machines to cope with the proposals of the Royal Mail to move to size-based pricing; what plans she has to inform consumers of the likely impact of the move to size-based pricing proposed by the Royal Mail; what estimate she has made of the cost to Royal Mail business customers of adapting to size-based pricing; and if she will make a statement; if she will assess the compliance of the Royal Mail's proposals for size-based pricing with paragraph 13, condition 19 of the Royal Mail's licence, with particular reference to the requirement that any alteration in pricing avoids unreasonable changes for users of the service; and if she will make a statement; what discussions she has had with Royal Mail concerning its proposals for size-based pricing; and if she will make a statement; what representations she has received concerning the Royal Mail's proposal to move to size-based pricing; and if she will make a statement.

Answer: Mr. Dismore: To ask the Secretary of State for Trade and Industry (1) what estimate she has made of the cost to businesses of adapting or purchasing new franking machines to cope with the proposals of the Royal Mail to move to size-based pricing; [197520] (2) what plans she has to inform consumers of the likely impact of the move to size-based pricing proposed by the Royal Mail; [197521] (3) what estimate she has made of the cost to Royal Mail business customers of adapting to size-based pricing; and if she will make a statement; [197523] (4) if she will assess the compliance of the Royal Mail's proposals for size-based pricing with paragraph 13, condition 19 of the Royal Mail's licence, with particular reference to the requirement that any alteration in pricing avoids unreasonable changes for users of the service; and if she will make a statement; [197525] (5) what discussions she has had with Royal Mail concerning its proposals for size-based pricing; and if she will make a statement; [197526] (6) what representations she has received concerning the Royal Mail's proposal to move to size-based pricing; and if she will make a statement. [197528] Mr. Sutcliffe: Royal Mail's application to introduce size-based pricing is currently being considered by the postal regulator, Postcomm. The progress made in considering the application and the assessment of the effect of size-based pricing are matters for Royal Mail and Postcomm. Postcomm is considering the large number of responses they received to their consultation on Royal Mail's proposals. In view of the complexity of the issues involved and the significant implications for many Royal Mail customers, Postcomm and Royal Mail have agreed that more time is required to assess the size-based pricing proposal. Accordingly, the earliest implementation date, if the application is allowed to proceed, will be April 2006. Postcomm will assess Royal Mail's proposals against the criteria in Paragraph 13 of Condition 19 of its licence, and take account of its regulatory duties under the Postal Services Act 2000, and Royal Mail's other licence requirements.

Secondary information

Type: Written question
Reference: 426 c1081-2W;426 c1085-6W; 197520;197521;197523;197525;197526;197528
Session: 2003-04
Subjects: Costs Business Prices Postal services Royal Mail
Link: View this Written question on www.publications.parliament.uk

Dept of Trade and Industry

Secondary information

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