03/04/02 - Business a.m

Post rivals 'failing to address deregulation'

James Ashton

SCOTLAND'S largest direct mailing agency voiced concern yesterday that competitors to Consignia were ill prepared for the deregulation of the postal network next month.

Marco Scognamiglio, the managing director of WWAV Rapp Collins Scotland, said that neither Hays nor Business Post, Consignia's two biggest rivals, had approached him to see what they could do for his business.

WWAV is one of Consignia's biggest customers in Scotland, sending out 40m items each year at a cost of £6.6m (€10.8m) for its clients, which include Scottish Widows, Scottish Friendly and Glen-eagles Hotel.

In the first stage of a phased opening of the postal market, rivals to Consignia will from May be able to compete for contracts from businesses sending out more than 4,000 items. The timetable for opening up competition slid after Postcomm, the industry regulator, extended the consultation period.

Direct mail companies are hoping that competition will be sufficient to spur lossmaking Consignia into improving its performance, but many are hopeful of having a viable alternative to which they can turn.

Business a.m. revealed yesterday that Business Post had delayed this week's launch of its first Scottish postal trial after Postcomm proposed that private operators could apply for permanent licences which would allow them to consider longer term investment.

Neil Tregarthen, the managing director of Hays DX, said: "We have operated a business- to-business mail service across the UK, including Scotland, for the last 27 years and we already deliver 1.2m items of mail a night.

"We have a delivery network which covers over 60,000 points each and every day, the vast majority before 9am."