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MP calls for action to protect postal services

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A north-east MP is leading calls for regulators to launch an urgent investigation to ensure postal services to rural areas remain protected.

Sir Robert Smith, Liberal Democrat member for West Aberdeenshire and Kincardine, has piled on the pressure by tabling a motion at Westminster.

Last month, Royal Mail chief executive Moya Greene called for “timely regulatory action” to prevent competitors undermining the economics of the universal service – which ensures consumers in all corners of the country are served at the same price.

Sir Robert’s motion expresses “concern” at the expansion of end-to-end postal services by TNT Post UK and calls on regulator Ofcom to undertake a full review of postal competition “as a matter of urgency”.

It has already been signed by 37 MPs, including Argyll and Bute representative Alan Reid and John Thurso, the member for Caithness, Sutherland and Easter Ross.

Sir Robert said: “The universal postal service is vital to ensure communities and businesses up and down the country get deliveries six days a week at the same price, regardless of location.

“It is important that competition is fair so that people in rural areas of the UK do not lose their access to Royal Mail’s services because of rival companies operating within easier to serve cities and cherry-picking cheaper to provide business.

“Without the universal service rural businesses and communities would have no choice but to pay extra for postal services.

“There needs to be a level playing field and fair competition.

“The regulator has a legal obligation to protect the universal service and by bringing forward their planned investigation Ofcom will find it easier to ensure that this vital service remains sustainable.”

An Ofcom spokesman said: “Protecting the universal service is at the heart of Ofcom’s work, and our evidence clearly shows that the service is not currently under threat from competition to Royal Mail.

“We would assess any emerging threat to the service quickly, in the interests of postal users.”