UK GOVERNMENT PRESSED OVER REMOVAL OF PRICE CAP Island MSP Kenneth Gibson has questioned the UK Government’s commitment to supporting small businesses after proposing to give Royal Mail powers to charge an unlimited price for first class stamps while the cost of second-class postage could rise by more than 50%. Mr Gibson has expressed concern over the potential impact on small businesses, the public and indeed Royal Mail itself. He said: "The UK Government’s commitment to supporting small businesses is in serious doubt over these damaging proposals. "The removal of the cap on stamp prices would have serious consequences for small businesses heavily reliant on Royal Mail, particularly at a time when many are already under pressure. "The cost of doing business on Arran is not helped by threats to the Universal Service Obligation either and many islanders are understandably concerned that companies often either refuse to deliver to Arran or charge a huge surcharge. "While large businesses which send a lot of mail can use private providers as an alternative or benefit from a bulk discount, this is not an option for small island businesses and this could result in them being priced out of markets. "An increase in postage costs would inevitably result in a further decline in communication by post which could lead to even higher prices and impact adversely on Royal Mail itself. "In terms of the wider public, older people who rely most on the post would also bear additional costs and be less likely to write and send letters in the future. "If we are to get ourselves out of this current economic mess small business growth is essential and the UK Government and Ofcom must take this into account and reject proposals that would be detrimental to this."
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Posted by Drew Kunz on 08/03/2012, viewed 514 times | Permalink Report Offensive Content |
