Question

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the adequacy of the current pricing structure of cross-border mail between the UK and Ireland.

The setting of postal prices, including prices for cross-border mail between the United Kingdom and the Republic of Ireland, is the direct responsibility of postal operators. It is for postal operators and other carriers to ensure that they offer cross-border services that meet the needs of postal users in Northern Ireland and that their services are competitively priced, while covering the costs of their respective operations.

Royal Mail, as the UK’s designated universal service provider, can negotiate suitable cross-border arrangements with the postal administration in the Republic of Ireland in the same way as it does for any other international destination, though its universal services must comply with the requirements of the Postal Services Directive on cross-border mail within the European Union and with Ofcom’s regulatory framework which sets parameters on pricing for universal postal services. Other carriers offering services between the UK and the Republic of Ireland are responsible for setting their own pricing structures in response to market pressures.

Royal Mail works closely with An Post to provide customers with a high-quality cross border postal service. A Consumer Focus NI report of March 2010 (http://www.consumerfocus.org.uk/northern-ireland/publications/cross-border-post-improving-mail-services-between-northern-ireland-and-the-republic-of-ireland) found that on reliability 85% of consumers and 75% of businesses rated the cross-border services as good and that the service exceeded the EU performance targets of delivery within 3 days of posting in both directions.