Hays PLC
4 July 2001
HAYS' RESPONSE TO CLAIM FROM CONSIGNIA
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Consignia has issued legal proceedings against Hays plc seeking remedies for
alleged breach of Section 6 of the Postal Services Act 2000. It is claimed
that certain services provided by Hays infringe Consignia's de facto postal
monopoly. The services in question relate mainly to the delivery of tickets,
itineraries and invoices, between travel companies and their respective
branches and agents.
Hays will vigorously defend the proceedings which Consignia want heard by the
Court on Friday 6 July.
Hays refutes the Consignia claim that these services are covered by
Consignia's de facto postal monopoly. Hays has also applied for licences
under the new postal regime and it is expected that a decision on the grant of
these licences will be announced by the early autumn. The grant to Hays of
such licences would put the legal position beyond doubt.
The claim made by Consignia affects only a small proportion of Hays' existing
mail business; approximately £10 million of annualised turnover is involved.
The long-standing Document Exchange (DX) service is not affected.
Neil Tregarthen, Managing Director at Hays Mail & Express Services, commented:
'Hays' priority is to provide customers with the best and most cost effective
service bringing greater competition, innovation and choice to the
marketplace. Hays believes that Consignia's attempts through the Court to
stop such services are anti- competitive, against the interests of the
business community and contrary to the spirit of both UK and European
legislation which is seeking to promote competition.
'As we enter the summer holiday season travel companies need to be confident
of being able to deliver tickets to their customers. If Consignia was able to
satisfy these basic requirements there would not be such a high demand for our
services from travel companies.
'The services in question have been provided by Hays and its predecessors for
many years. It is noteworthy that the action is being brought by Consignia,
not by the Postal Services Commission, which has direct responsibility for
policing the Postal Services Act. Hays believes it is both sensible and
reasonable, in the interests of its customers, to continue the activities
pending a decision from the Commission on its licence applications. Hays
believes that the legal action Consignia has taken at this stage of the
licence application process is an opportunistic attempt to force us to concede
business to Consignia ahead of the grant of licences.'
Enquiries:
Graham Williams, Executive Director, Hays plc 01483 302 203
Jon Coles, Brunswick 020 7404 5959
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