Online Retail Delivery Charges

Debate between Drew Hendry and Gavin Robinson

Tuesday 8th September 2015 Commons Chamber

[Gavin Robinson]

Of course I agree with the hon. Gentleman. Perhaps uniquely in my short experience in the Chamber, this Adjournment debate has struck some interest from the more peripheral parts of the United Kingdom. I do not wish to be mean or unkind, but it is important that I do not accept interventions from across the Chamber, to give me the opportunity to put forward my points. I should note that the hon. Member for Romford (Andrew Rosindell), the chairman of the all-party group on the Isle of Man and the all-party group on the Channel Islands, has taken a keen interest in this issue. I am grateful to Members from across the Chamber who have highlighted the importance of this matter.

The Consumer Council for Northern Ireland, following its survey, indicated that 33% of online retailers applied a delivery exclusion to Northern Ireland. That can include higher delivery costs, longer delivery times or a refusal to offer a service at all. Other peripheral areas of the UK face high exclusion rates: 42% in the Channel Islands, 38% in the Isle of Man and 31% in the Scottish highlands and islands. Regrettably, and astoundingly, the figure for Northern Ireland as a whole stands at 33%. That is in stark contrast with the rest of the UK: 3% for the entirety of Scotland and Wales and only 1% for the entirety of England. Half of all online retailers in the UK fail to offer the same delivery options across the country, 17% refuse to deliver at all, 20% apply higher costs and 18% take much longer to deliver. The average one-off cost is £10 when free delivery is withdrawn, so while free UK postage and packaging is advertised, £10 is the average additional cost levied on a Northern Ireland consumer. An additional £2.71 is sought when the standard price for delivery is unavailable.

It is easy to try and give a reason for this. I will not use the vocabulary contained in this tweet, but this evening, when I announced that this Adjournment debate had been accepted and that we had the opportunity to raise this issue in Parliament, I got a rather caustic reply saying, “Well, of course it’s more expensive. You live on an island. What do you expect?” Of course, that goes some way to explaining the nature of the issues, but it does not answer or resolve the frustration facing consumers.

Unlike for letters, there is no universal regulated service for parcels. Standard delivery operators prefer to offer their services in densely populated and urban areas, and in offering retailers a contract price, they limit their own costs, and of course no one is forced to proceed with their purchase, should they not find the terms attractive.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

As was mentioned, Citizens Advice Scotland today published a report highlighting not only that more than 1 million people in rural Scotland are still suffering the inequity of delivery surcharges, but that these surcharges are still increasing. Taking into account inflation, delivery costs are now 10% higher than three years ago. People in the highlands and islands are paying more for deliveries. Does the hon. Gentleman agree that this punishing difference in costs must not be allowed to continue?

[Gavin Robinson]

Yes, I do. I am seeking to outline some of the reasons why that might be, but I think there is a role for the Government, which is why this Adjournment debate is so important.

There is a substantive unfairness in leading a consumer through the entire process of purchase, only to levy a charge at the final stage. It is unfair and—I suspect—illegal. The first obvious issue engaged is the Consumer Protection from Unfair Trading Regulations 2008. I am talking about a situation where someone is enticed into a sale that includes, as part of the terms, free postage and packaging in the UK, only to find the offer reneged upon when a postcode is provided. I would be interested to hear whether the Minister believes that to be a misleading inducement. Secondly, there is a contractual issue with the delivery agent only.