The Highland Council fears that the introduction of competition to the postal services market will result in a second class service for Highland businesses and residents. The Council fears that a two-tier market will emerge. High volume business customers will get a high quality, low cost service while households and small businesses, particularly those in rural and remote areas, will get a poor quality, high cost service.

In its response today (Thursday) to the Deputy Director, Competition and Regulation, Postcomm, London, the Council expressed its concern that Postcomm’s proposals are likely to increase social exclusion in rural areas and deliver no benefits to the majority of customers in rural and remote communities.

It is also worried that competition could threaten Consignia’s ability to maintain the Highland network of rural post offices and Postbus services, thereby putting at risk jobs.

It maintains that Postcomm should postpone its plans until it has researched fully the potential impact of competition on rural areas.

Postcomm has also signalled its intention to review the definition of the Universal Postal Service ie services which must be delivered at a universal tariff across the UK.