PPA says Postcomms pricing plans will harm publishers

Postcomm has been accused by the PPA of being too rapid and ill-considered over its plans for Pricing in Proportion (PiP) and the general liberalisation of the market.

The changes could significantly affect printers as publishers are hit with postal price hikes. The PPA made the claims to the chairman of the Select Committee for Trade & Industry Peter Luff MP. The association also criticised Postcomm's plans to remove price regulation from the magazine delivery service Presstream.
Presstream offers publishers discounts on magazines and periodicals if they meet certain criteria.

"The Presstream system allows UK publishers some of the most competitive postal prices in Europe," said Haymarket production director Chris King. "If it were to go, it could put many publishers under. Royal Mail has to be careful it doesn't kill the golden goose by losing volume."

PPA director of circulation Nicola Rowe added: "We are questioning if the regulator is acting in a way that is going to be in the best interest of the general market."

But Postcomm responded by arguing that in regards to PiP, its consultation process began in 2002, and that it will still not come into operation until August 2006.

"We have always accepted that not everyone would like the decision and that some will fare better than others," said a Postcomm spokesman.

Postcomm refused to comment on Presstream and added that a decision will be "published shortly as part of our next price control".

PiP timeline
- 2002 Royal Mail begins consultation process over PiP

- August 2004 PPA responds to Postcomm's consultation

- March 2005 Initial plans treated with caution despite some compromise

- August 2005 Postcomm gives Royal Mail green light