GCA Meets Labour’s Head of Policy

Amanda Fergusson ups the campaign to safeguard Royal Mail’s USO

The GCA has upped the battle over Royal Mail’s threat to cut letter deliveries, to the people who may have the most clout - the Labour Party, which is odds on to form the next government given the current political turmoil.

The trade association CEO Amanda Fergusson played an active part in a recent high-powered meeting with Adam Terry MP, Labour’s head of policy department as part of the GCA’s membership of the Independent Retailers’ Confederation (IRC).

As Amanda highlighted: “This was a significant and very worthwhile meeting, providing an opportunity to stress the importance of maintaining the six day a week delivery service from Royal Mail for the public, retailers, our industry and many others.” Amanda led the discussion on safeguarding the Universal Service Obligation (USO), aware that no change is likely to be made until after the next election, she recognised the merit of forging links with the Labour party as well as the current Government.

Following correspondence with Jonathan Reynolds, Labour’s shadow business and industrial strategy secretary, about the request by Royal Mail to cut Saturday letter deliveries from its Universal Service Obligation (USO), Amanda told Adam: “We understand that Labour share our concerns. We would like to see protecting the USO forming part of Labour’s policy.” She reinforced: “Ofcom research shows that customers really value six days a week delivery, and many small businesses rely on Royal Mail deliveries. Clearly, for the greeting card industry, it is also vital for consumers -there are 180,000 birthdays a day in the UK alone.”

Six days after the GCA wrote to Jonathan, he himself sent a letter to business secretary Grant Shapps MP, setting out his concerns over Royal Mail’s “alarming” half-year results to 25 September, 2022, saying the postal company should explain why it chose to give out £400million in dividends and £167m in share buybacks “despite the known post-pandemic forecasts which indicated difficult times ahead for the business”, and asking why it has ended the cross-subsidy arrangements from its GLS arm “profits which fund the USO”.

He added: “The ability to send and receive letters and parcels from any part of the UK for the same price is a public service we should rightly cherish, and one many people and small businesses rely on.”

Royal Response

Wendy Jones-Blackett was delighted with King Charles III’s response to the thank you card she and her team designed back in September after hearing of the death of Her Late Majesty Queen Elizabeth II.

MPs put pen to paper

The GCA’s call for industry folk to write to their MPs to express opposition to Royal Mail’s decision to look at cutting letter deliveries to five days a week, has received some traction.

“Lovely to have received a response letter from my MP regarding my concerns with the Royal Mail which may affect the valuable services we rely upon,” Abacus Cards’ md Nick Carey said of his missive from Alex Burghart, MP for Brentwood and Ongar, who promised to take the card industry’s concerns into consideration in debates and votes in the House of Commons.

And at Home Counties greeting card retail group House of Cards co-owners Miles Robinson and Nigel Williamson both wrote to their local MPs explaining: “This could have a significant detrimental effect to our business. Royal Mail postage is an integral part of our business as card retailers. Customers want to buy a card, and post it to arrive the next day, including Saturdays, whether that be for a birthday, sympathy, anniversary or one of many other occasions we celebrate as a greeting card sending event. If these cards are consistently turning up late, or they are needed to be posted several days in advance of the occasion, customers will simply stop buying cards and more will move to the much more impersonal method of digital messaging and greetings.”

And they asked their MPs to raise these concerns within government and stress the need for Royal Mail to continue Saturday deliveries and fulfil its Universal Service obligations, as well as encourage a swift resolution to the ongoing industrial action which severely disrupted card deliveries over the business Christmas period.

In her response to Miles, Laura Farris, MP for Newbury , wrote “As Saturday deliveries are part of the USO, MPs would need to vote to change it. I hope Royal Mail will therefore conduct a full analysis of the effects of any changes and I will monitor any developments closely.”

Above: House of Cards’ Miles with the letter to his MP.

She told PG: “I’m sure we’re not the only ones to receive this but this was such a lovely touch by King Charles’ team, sending out thank you cards to people who sent sympathy cards.

“A gorgeous example of British card sending, tradition and etiquette. His message is so deeply personal and sad and refers to her as a mother rather than a Queen, which is sometimes forgotten in the tributes. I think this just hits the right note.”