CA calls for postal service watchdog

The Consumers Association has called for more competition in the postal services and for a strong independent industry regulator. It said that the Government has failed to deliver a promise of more competition for letters and parcels, made as part of the Citizen's Charter. The CA criticises the Government for failing to remove the Royal Mail's monopoly for letters costing less than £1 to send. Its research shows that most consumers want more competition in postal services, despite counter claims from politicians and trade unionists.

In a report published yesterday, it says: "There is already competition, but it is aimed at businesses - domestic customers should now be allowed to choose between firms." It attacks the Government for failing to commit to a more open market in last year's Green Paper on the industry and for indicating that any regulator would cover only privatised firms.

Last year, the Government was forced to abandon plans to privatise the Royal Mail and Parcelforce. It has failed so far to produce an alternative blueprint for the future of the industry, which is now the subject of an enquiry by the Commons' Trade and Industry Select Committee.

The CA said that the debate over privatisation has obscured the underlying issue of how the market for postal services can be opened to competition.

Although the majority of people still want more competition, the CA says: "It seems that the widespread debate on privatisation had the effect of increasing public anxiety about competition.