29/03/02 - The Drum

WWAV chief fights for fair play by Post Office

The managing director of WWAV Rapp Collins Scotland, Marco Scognamiglio, has contacted his MP to voice concerns over the Royal Mail being allowed to expand into areas such as direct marketing, despite being such a dominant force in the UK mail delivery market.

In a letter to MP Mark Lazarowicz, Scognamiglio states that during the governmental review of the Post Office, shortly before it became Consignia, WWAV Rapp Collins Group had significant input and supported improved commercial freedom for the Post Office, provided an independent regulatory body was set up to ensure that the Post Office did not abuse its dominant position.

According to Scognamiglio, recent acquisitions by the Royal Mail have not been scrutinised by any regulatory body, with Postcomm turning a blind eye.

Scognamiglio states: "The Royal Mail has already taken several steps into the direct marketing arena, financially supporting a lifestyle database company and taking a stake in a major mailing house. Despite the existence of a postal regulator, Postcomm, we know there has been no scrutiny of either venture."

He concludes that the Royal Mail is being allowed by the government to abuse its position and act anti-competitively.
He says: "Having met with Postcomm, we are now seeking meetings with both the OFT and DTI in a bid to ensure action is taken to ensure that the level playing field we were promised is actually delivered."

Should action not be forthcoming, Chris Gordon, chief executive of WWAV Rapp Collins, says that they may have to take their complaint to the European Commission. He said: "We are not looking for special treatment, just the same sort of protection that other industries have been given in similar circumstances."