BULK mailers must have time to adjust to increased mail costs, says the Commerce and Employment Department. ‘We have requested that the OUR give a long lead time that would allow the companies to reposition their businesses and set their charges for November that reflect the current postal changes,’ said director of resources Stuart Le Maitre.

The Office of Utility Regulation has sanctioned an increase of bulk mail tariffs by up to 70%, which would take effect from August.

Bulk Mailers’ Association chairman Rodney Brouard has warned that some of its members might quit the island because of the increase.

Mr Le Maitre could not say whether he thought it was likely that any of the island’s 12 bulk mail companies would relocate.

‘A lot of companies will not be keen on the increases,’ said Mr Le Maitre.

‘What I would not want to say is that no companies would leave.’

He said that the department worked closely with the sector and that none had contacted it on that matter.

Mr Le Maitre said that the department recognised that any increase in the cost of operating from Guernsey was not helpful.

But he said that it was only one element of operating a successful business from the island.

He added that companies interested in setting up in the island had highlighted the service offered by Guernsey Post as a significant factor.

Mr Le Maitre said that those working in bulk mailing had had the opportunity to state their concerns to the Office of Utility Regulation.

And he said it was appropriate that postal costs were increased in the light of costs passed onto Guernsey Post by Royal Mail.

‘The department appreciates the difficult job that the OUR has in setting and delivering a reasonable pricing structure.

‘Any recommendation in the increase in cost by the OUR has not been made lightly.’

Guernsey Post has so far declined to comment on the possible outcomes of the announcement.