Head of PPA criticises price increase on bulk mail

Chief executive of the Professional Publishers Association has warned a Royal Mail price increase is

The chief executive of the Professional Publishers Association has warned that allowing the Royal Mail to impose a price increase on bulk mail would be like a penalty tax on magazine publishers.

Barry McIlheney said magazine companies would end up paying for the Royal Mail's inefficiencies once Postcomm, the postal regulator, approved its request to raise additional revenues through a price hike.

Postcomm said earlier this month it was minded to accept Royal Mail's request to "maintain the pace of the modernisation programme required to safeguard the provision of the universal postal service". A final decision is expected this week.

Amongst a range of measures requested by the Royal Mail, Postcomm said it intended to remove the retail price controls from all parcels weighing more than one kilogram and from second class pre-sorted bulk mail services.

"The PPA has serious misgivings over Postcomm's decision to allow Royal Mail the flexibility to double the permitted price increases on bulk mail," Barry McIlheney said.

"At a time when the Government is looking to the creative industries as a driver of economic growth, this is a short-sighted move.

Full story at the Press Gazette.