§ Mr. FallonTo ask the Secretary of State for Trade and Industry what was the percentage increase in the cost 29W of a letter stamp for Europe in (a)1998 and (b)1999; what were his reasons for authorising the increases; and if he will make a statement. [96486]
§ Mr. Alan Johnson[holding answer 28 October 1999]: The cost of a stamp for a letter up to 20g to European destinations rose by an average of 4.8 per cent. on 6 April 1998 and by a further 13.33 per cent. on 25 October 1999. It is still one of the cheapest rates in Europe.
The increase was prompted by increasing handling costs and is in line with the agreement, set out in the European Postal Services Directive, that prices should be geared to costs. The increases were introduced by the Post Office following consultation with the Post Office Users' National Council (POUNC).