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MPs debate 'unfair' delivery charges Delivery charges 'summit' offer made
(about 14 hours later)
A new bill which aims to tackle "unfair" postal delivery charges to rural Scotland is to be debated by MPs. The UK's consumer affairs minister has offered to host a summit of online retailers in a bid to reduce the delivery surcharges on goods to remote parts of Scotland.
Jo Swinson was responding to the West Aberdeenshire MP Sir Robert Smith, who has introduced a bill aimed at tackling "unfair" delivery charges.
The bill was talked out of time by a Tory MP.
But Ms Swinson said legislation was not necessary to deal with the problem.
Instead, she said retailers would be encouraged to have fairer delivery charges.
Research has suggested a million Scots face surcharges, late delivery or are refused delivery altogether when they try to buy goods online.Research has suggested a million Scots face surcharges, late delivery or are refused delivery altogether when they try to buy goods online.
The bill would make it compulsory for websites to declare the presence of surcharges before consumers even start to browse.
It has been brought by West Aberdeenshire MP Sir Robert Smith.
Distributors have previously argued it was more expensive to make one delivery to a rural location far from a distribution centre than in a city where 10 or 15 deliveries were being made in a single day.Distributors have previously argued it was more expensive to make one delivery to a rural location far from a distribution centre than in a city where 10 or 15 deliveries were being made in a single day.
The proposed legislation follows intensive campaigning on the issue by the Citizen's Advice Scotland (CAS) service. Sir Robert, a Liberal Democrat MP, said online sellers should display the existence of surcharges for delivery to certain UK areas at the beginning of the shopping process.
He called on the government to adopt his Delivery Surcharges (Transparency for Consumers) Bill which would make Business Secretary Vince Cable and his department bring forward regulations within a year to make online retailers be more transparent about costs.
Sir Robert said retailers do not do enough to provide a delivery system that works for the whole of the UK.
He told the Commons: "This is an extended problem across much of the geography of the United Kingdom, mainly in the Highlands and the north of Scotland but also extending down into the borders of Scotland and to the islands of England - the Isle of Wight, the Channel Islands, the Scilly Isles.
"It's part of a wider awareness raising because I think the retailers need to be more focused because they are looking at the vast majority of their customers, are thinking of a delivery system and not shopping around for one that will deal with those at the margins.
"What a lot of retailers could be looking at is Royal Mail's universal service delivery products for those areas that can't be dealt with by couriers and should make a serious consideration of that."
Shadow business minister Ian Murray voiced Labour's support for the bill and said it was in businesses' interests to be more transparent about costs.
And Ms Swinson said the government supported the principles behind the bill.
'Transparency and fairness'
She added: "If you live on an island you know from personal experience that if anything is to get on to the island then it has to either be flown in or come in on the ferry and that can have an impact on costs of all sorts of things.
"And while I think we want to make sure those consumers also have information you were quite right to outline that if you are living in the suburbs of Aberdeen you're perhaps not quite in the same mindset of expecting to suddenly be hit by massive delivery charges when you are by no definition living in a remote area.
"So I very much support the principles of clarity, transparency and fairness for consumers that lie behind the Bill that you have brought forward today, these are principles that the government fully supports."
Sir Robert's proposed legislation followed intensive campaigning on the issue by the Citizen's Advice Scotland (CAS) service.
Its Postcode Penalty report published in December concluded that more than a million people living in Scotland were being "routinely ripped off" by unfair delivery charges.Its Postcode Penalty report published in December concluded that more than a million people living in Scotland were being "routinely ripped off" by unfair delivery charges.
Refused to deliver
The report claimed people living in Scotland's island communities had to pay nearly £18.60 extra on average to have goods they bought online delivered - a 500% mark up on the standard delivery price.The report claimed people living in Scotland's island communities had to pay nearly £18.60 extra on average to have goods they bought online delivered - a 500% mark up on the standard delivery price.
Customers in the Highlands were charged an extra £15 per delivery on average, it said.Customers in the Highlands were charged an extra £15 per delivery on average, it said.
Of the 534 retailers whose policies were investigated, 335 charged extra for delivery to certain parts of the UK. Many online retailers refused to deliver goods to any Scottish islands, with a third saying delivery would take longer for customers in some parts of the UK.
Almost a quarter of those surcharges applied to consumers in Scotland, which the report's authors said showed Scottish consumers were being disproportionately affected by delivery surcharges.
The report also found 55% of retailers who restricted the areas of the UK to which they would deliver refused to deliver goods to any Scottish islands, disadvantaging the estimated 100,000 people who live in island communities.
And a third of online retailers said delivery would take longer for consumers in some parts of the UK.
Of these, 39% took an extra three or more days to deliver to consumers in certain parts of Scotland, with some customers waiting as long as 35 extra days for delivery compared the rest of the UK.Of these, 39% took an extra three or more days to deliver to consumers in certain parts of Scotland, with some customers waiting as long as 35 extra days for delivery compared the rest of the UK.
'Positive feedback' Some 69% of retailers investigated by CAS did not offer delivery by Royal Mail, despite the Royal Mail's universal service obligation meaning that delivery by this method costs the same across the UK.
But 69% of retailers investigated by CAS did not offer delivery by Royal Mail, despite the Royal Mail's universal service obligation meaning that delivery by this method costs the same across the UK. CAS also reported that some firms were placing Aberdeenshire, Moray, Argyll and Bute and Perthshire into the category of Highlands and Islands for charging purposes.
CAS also reported that firms were placing Aberdeenshire, Moray, Argyll and Bute and Perthshire into the category of Highlands and Islands for charging purposes.
Speaking ahead of Friday's debate at Westminster, CAS chief executive Margaret Lynch said: "When we published that evidence, we received positive feedback from all the political parties, and we have continued to have useful discussions with them.
"This bill gives them a new chance to say what they are actually going to do about the problem. We look forward to hearing what they have to say."
Sir Robert, a Liberal Democrat MP, launched his Fair Delivery Scotland campaign and a petition on the issue on Monday.
Speaking at the time, he called on online retailers to end excessive delivery surcharges and to make surcharges more transparent on their websites.
Parcel summit
Sir Robert added: "People in Aberdeenshire are fed up with the excessive surcharges that some online retailers charge. This campaign is about making sure that consumers in the North East and the Highlands and Islands are no longer charged ridiculous surcharges.
"Consumers are particularly frustrated by websites that do not declare the extent of surcharges until the end of the shopping process.
"This is against current consumer law and if anyone has experienced this recently please do get in touch so the website can be reported to Trading Standards.
"However I want websites to be even more transparent and declare any surcharges before you even start shopping. That way consumers in Aberdeenshire could decide whether it's worth their while to take the time to browse the website."
The Scottish government held a "parcel summit" last year to discuss ways of improving parcel delivery services in Scotland.The Scottish government held a "parcel summit" last year to discuss ways of improving parcel delivery services in Scotland.
Enterprise Minister Fergus Ewing chaired the meeting in Inverness with delivery services and retail bosses.Enterprise Minister Fergus Ewing chaired the meeting in Inverness with delivery services and retail bosses.