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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 18 July 2025
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Displaying 1696 contributions

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Economy and Fair Work Committee

Royal Mail

Meeting date: 28 June 2023

Claire Baker

I will mention two issues that are linked to that. First, if you have to decide to prioritise parcels over letters, do you look at the type of letters that are there? There is a concern about hospital appointments. I recognise that a lot of what is posted is birthday cards and stuff like that—social post—but is any distinction made between letters that have to reach people in time and other letters?

Secondly, are penalties attached to parcels? Is there a financial incentive to prioritise them over letters?

Economy and Fair Work Committee

Royal Mail

Meeting date: 28 June 2023

Claire Baker

Our next item of business is an evidence session with Royal Mail. Ahead of the session, the committee put out a call for evidence and received a number of written submissions. I thank everyone who submitted their views to inform this morning’s session.

I welcome from Royal Mail Ross Hutchison, the operations director for Scotland, and Ricky McAulay, the operations development director. As always, I ask members and witnesses to keep their questions and answers as concise as possible. I invite Ricky McAulay to make a short opening statement.

Economy and Fair Work Committee

Royal Mail

Meeting date: 28 June 2023

Claire Baker

Ofcom recognised that prioritising parcel delivery may have been necessary during the pandemic. Was it policy to prioritise the delivery of parcels over letters during the industrial dispute?

Economy and Fair Work Committee

Royal Mail

Meeting date: 28 June 2023

Claire Baker

But would Royal Mail incur a penalty if a parcel was not delivered in a certain timeframe?

Economy and Fair Work Committee

Royal Mail

Meeting date: 28 June 2023

Claire Baker

What if a company is asking you to deliver the parcel? If a person orders something online and the company cannot deliver it, it might ask Royal Mail to do it. Could the company impose a penalty on you if you failed to deliver it in the relevant timeframe, whether that was 24 hours or 48 hours?

Economy and Fair Work Committee

Royal Mail

Meeting date: 28 June 2023

Claire Baker

I would also like to ask about the price of stamps. I think that I am correct in saying that it is Royal Mail that sets the price of a first-class stamp, whereas the price of a second-class stamp is still capped by Ofcom. At the moment, it costs £1.10 to send a standard first-class letter, whereas it costs 75p to send a second-class letter, which means that it is 35 per cent—or more than a third—dearer to send a letter first class. It seems that the price of stamps has increased quite dramatically. Do you think that the increase in price might be one of the factors in the reduction in the volume of letters? Particularly at Christmas, when we expect people to buy a high volume of stamps, there is a question whether £1.10 is still affordable.

We recognise that, in the UK, we have a very valued service, with a universal service obligation that other countries do not have. We also recognise that you reach every point of the UK, which is really important and is valued by people, too. However, there has been quite a big increase in the cost of a service that people regard as an everyday service, and the concern is that it has now become a special service that they use only on special occasions, because they are not prepared to pay the high cost. What consideration is given to such matters when you make decisions on the price of first-class stamps?

Economy and Fair Work Committee

Royal Mail

Meeting date: 28 June 2023

Claire Baker

But if it is a card for a special occasion, that could take five days. It is recognised that second-class delivery is slower. I know that three days is the target, but it seems to be the case that second class is now quite a bit slower than first class.

Economy and Fair Work Committee

Royal Mail

Meeting date: 28 June 2023

Claire Baker

As members have no further questions, that brings us to the end of this morning’s session. I thank both our witnesses for their evidence, which has been helpful to the committee.

10:49 Meeting continued in private until 11:11.  

Economy and Fair Work Committee

Scottish National Investment Bank

Meeting date: 21 June 2023

Claire Baker

I think that Jamie wants to ask a follow-up question.

Economy and Fair Work Committee

Scottish National Investment Bank

Meeting date: 21 June 2023

Claire Baker

I have a couple of final questions on this subject. You mentioned the Bank of Scotland, did you mean RBS?