SMALL businesses are likely to feel the brunt of Guernsey Post’s proposed price hike on local and UK mail. Under the utility’s three-year plan, which the Office of Utility of Regulation is currently considering, the cost of sending a bailiwick letter would rise to 33p next year, 36p the following year and again to 39p in 2009. The UK price would also increase to 39p next year, 44p in 2008 and to 49p the following year.

‘My main concerns are that small business users who regularly mail are going to feel the brunt of this,’ said user group Postwatch Guernsey chairman Dave Inglis.

‘It has been said, following the petition ‘undertaken earlier this year by West district deputy Al Brouard to save rural post offices’, that people were happy to pay 4p more per item, but they won’t be paying for it daily, as small businesses will have to.’

Mr Inglis said the proposed increases would create an inflationary spiral as businesses would be forced to pass on costs to customers.

He welcomed Guernsey Post’s assurances that it could make savings of £1.2m., but criticised the Commerce and Employment Department for rejecting what he considered to be further ways to save money as part of its review of the universal service obligation earlier this year. The OUR had recommended reducing deliveries from six days to five and minor alterations to the USO. Mr Inglis said limiting the collection and delivery service to five days could make savings of between 1.8p and 3.1p on the cost of postage.

‘We, as a committee, were disappointed by Commerce and Employment not taking a more long-term view, maybe addressing the USO by changing the service obligation to say only a five-day collection and delivery are required.

‘I would like to see them go back to the public and say: ﾓWhat do you think?ﾔ as that is quite a major saving. If there was no post collection on Sunday, it would affect when mail went out on the Monday, so there would need to be tweaking on how it worked,’ he said.

* Mr Inglis said he welcomed public feedback on the proposals. To contact Postwatch telephone 733561, email postwatchguernsey@cwgsy.net,

or write to Postwatch Guernsey, Freepost, PO Box 633, St Peter Port, GY1 5SS.