PPA slams Postcomms plan to end price rules

The PPA has cited damning new evidence to rubbish Postcomms justification for axing price controls from the magazine delivery service.

A recent meeting with the postal regulator crystallised  the magazine publishing body's opposition to removing price regulation from the Presstream delivery service next year, and other moves to liberalise the market.

"The issues of price in proportion pale to irrelevance compared with the threat from removing Presstream," said PPA postal strategy group chairman Keith Jones.

Postcomm argued that there was sufficient competition to justify Presstream's removal from regulation, he said.

The PPA countered pointing to evidence that competition for Presstream products was too weak to remove price control.

"Open competition is only significant when there are real competitors out there," said Jones.

PPA chief executive Ian Locks said: "Any Postcomm assessment of the market should be based on the current position, not future prospects of competition."

Director of legal and public affairs David Thomas said: "There's no competitive alternative for magazine delivery at this time. Our evidence from publishers is commercially confidential and has been submitted to Postcomm."

Last week the PPA turned up the heat on Postcomm by warning MPs that price hikes.