5th December 2011

A High Price to Pay


As a new 15-part series on the Royal Mail, "The People's Post", starts on Radio 4 this week, we ask is this is a tribute or a eulogy ?

In April the price of a first class stamp rose by 5p. to 46p. and it is likely to rise further. Although it is claimed that this price is "among the lowest in Europe", by comparison the U.S. Postal service is raising the cost of its first class service to just 45c. (29p.) in January next year. No wonder then that many businesses and individuals are thinking twice before sending that card, letter or statement.

Yet more depressingly, the recent Ofcom proposal to let Royal Mail set its own prices for First Class post instead of this continuing to be controlled by the RPI measure of inflation, would be likely to lead to even greater price rises as RM reacts to decreasing mail volumes as well as rising costs. Even if Second Class post continued to be regulated, the impression of an exaggerated gap in quality of service between the two tiers would be likely to discourage users further still.

It all seems a far cry from Rowland Hill and the fine innovation of the affordable 'Penny Post' intended to encourage commerce.

It also now seems increasingly possible that the sending of personal letters may develop into a niche activity and that stamps themselves will become relics of the past rather than part of the everyday life of the nation. The advance of electronic technology cannot be reversed and, regrettably perhaps, an emailed letter sent to my mother with attached family photos will arrive much more quickly than a posted version, now that she is riding among the 'silver surfers'.

Banks and other businesses are able to offer financial incentives to those willing to forego being sent paper documents. I fully expect to have to explain to my grandchildren what a chequebook once was and eventually to receive a text message from His Majesty on my 100th birthday (should I be lucky enough to reach it).

In the meantime Royal Mail continues its policy of squeezing every penny from the sale of stamps to collectors yet there is no generally agreed view of the role that the company should play in this nor any aspect of its range of business. The public is not in sympathy with moves toward privatisation and there is much confusion in a business strategy that encourages the company to compete in the market whilst at the same time handcuffs its activities in order to maintain its Universal Service Obligation. There remains at the same time a pressing obligation to safeguard RM's massive historic pension liabilities. Can it be that a state owned basic postal service with a responsible stamp issuing policy is in fact an impossible dream in this country ?

Solutions for all areas of RM's business need to be much more creative.  Although formerly an independent body, today's 'Stamp Advisory Committee' is run by Royal Mail to review stamp designs commissioned by the company. It includes representation from various communities, that includes stamp collecting but only in a small minority. Committee members are not elected by the communities it is claimed they represent, simply chosen by Royal Mail itself. The committee, moreover, chooses neither the subjects nor the timing of issues, it merely exerts an influence on the chosen designs. The whole policy of stamp issues for this country, their content and frequency, lies in the hands of businessmen, who make their decisions based on a policy of maximised return. Their ideal would be to squeeze the collector until he squeaks.

As philatelists we are very aware that the stamps we issue represent our country around the world. We also know that the way in which new issues are perceived directly influences newcomers to our hobby, particularly the young.

As things stand new issues are too frequent, too expensive and reflect no clear policy or unifying vision. They celebrate and commemorate with a numbing regularity.

Joel Stein's proposal in his article "Pushing the Envelope" in Time Magazine on September 26th suggests how the money might be found to pull the U.S. Postal Service out of debt, and it is worth repeating. We would dispute his portrayal, of course, but there is an underlying truth that post offices would do well to consult more closely with philatelists on what they might actually wish to collect.

"This year the USPS released stamps with portraits of Pixar characters, Selena and Mark Twain. Do you think that's what stamp collectors are into ? Stamp collectors are into eating TV dinners alone and crying. Put out a stamp series of famous people eating TV dinners alone and crying, and there's your $10 billion."

Food for thought.

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In our illustration HRH Princess Margaret shows her support for the Post Office shortly after her sister's accession. Happy days.

More on the decline of the Monarchy next week.

JG