Rural Areas in Scotland: Additional Delivery Charges

Patricia Gibson Excerpts

Tuesday 2nd July 2019 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I thank the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing this important debate. I am delighted to participate in it, although I wish it were not necessary, because it has a pressing relevance not just to people in the north-east, but to my constituents—particularly those who have the great pleasure of living on the islands of Arran and Cumbrae. Like a million other consumers across Scotland, they face the challenges of coping with unfair delivery surcharges and late deliveries, or are even excluded from delivery services altogether when shopping online.

We must be under no illusion, because this is more than an inconvenience; it has a genuinely negative impact on rural businesses as well as consumers. Citizens Advice research tells us that the UK parcels market has grown by more than 50% since 2010, and much of that growth has been driven by parcels sent to consumers who shop online. The Scottish Parliament information centre has costed additional parcel delivery surcharges for Scottish consumers, in comparison with the rest of the UK, at approximately £38 million per year, which is completely unacceptable. A shocking £11.4 million of that is spent by consumers over the Christmas period, simply because of where they live.

Despite a fair delivery charges campaign, the figures are rising, and at a time when more and more of us are shopping online, for a variety of reasons. That is self-evidently and necessarily the case for those who live in rural areas. Some of us pay what can only be described as a postcode tax, which is often imposed randomly by some retailers, although not all. Such charges are discriminatory and hit consumers and rural businesses in fragile areas very hard indeed. The problem is deeply concerning for my constituents and other rural constituents. The penalising of the delivery of goods bought online and the consumer exclusion are such that 10.9% of retailers exclude some Scottish islands from a delivery service altogether.

The statement of principles on parcel deliveries has had little effect on the problem. The UK statement of principles is designed to assist retailers in their policies on the delivery of goods purchased over the internet by individual consumers. It sets out best practice principles for how retailers can ensure that their delivery services meet the needs of consumers. The UK-wide statement of principles builds on the Scottish guidelines that were launched in November 2013. The principles have arisen following agreement between representatives of the UK and Scottish Governments, online retailers, parcel delivery operators and consumer organisations. The logic is that having companies follow the course of actions outlined in the principles is helpful in ensuring that the UK parcels delivery market works in the interests of consumers and businesses. However, the last time I checked—perhaps the Minister has more recent figures—only four out of 449 businesses had even heard of the principles.

There is no doubt that the UK Government need to use the Consumer Rights Act 2015 to support education for businesses about the requirements under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. There also needs to be support for education for consumers about the information that they should be provided with and the minimum standards defined in the regulations. The principles were designed to secure a better, fairer deal for consumers in our rural areas, but not enough work has been done to increase delivery operator and retailer buy-in to the principles with a plan of action to promote the scheme.

There is no doubt that the Scottish Government’s road equivalent tariff ferry fare structure should have helped to reduce the costs of delivering goods to islands such as Arran and Cumbrae, but I am afraid that the reductions seem not to have been passed on to consumers. More work must be undertaken with delivery operators for our rural and island consumers across Scotland. We need to ensure that customers on islands and in rural areas can access a full range of delivery options to their local post office, local shop or any other place that is convenient to them and may reduce costs.

The Scottish Government have done all they can about the issue with the very limited powers they have, as the hon. Member for Caithness, Sutherland and Easter Ross pointed out, but not a great deal has changed in reality. The Scottish Government have unveiled the “Fairer Deliveries For All” plan to protect rural consumers and businesses and empower online shoppers to recognise and act on unfair and misleading delivery costs. The Scottish Government’s work on a voluntary code is also important, but the real power to put the matter right lies with the UK Government, who need to act. Our rural consumers and businesses need them to use their powers to regulate and do the right thing, so that they can access a fair deal.

I want a better deal for my island constituents on Arran and Cumbrae, and for rural constituents across Scotland and the UK. That is why I support a people’s delivery guarantee to pull together all aspects of delivery charges and guarantees, and to ensure that consumers are getting the fair deal that they deserve—not being misled by claims that delivery will be free, only to be told during or after purchase that that is not the case. The Minister may tell us that the Advertising Standards Authority launched a crackdown last year on misleading claims about rural delivery charges to consumers, but that has not really delivered the change that rural communities need.

[Douglas Ross]

I understand the hon. Lady’s argument and her point that more could be done, but I have given concrete examples of the ASA taking action. We should at least recognise that companies are now receiving enforcement notices, which was not happening in recent months and years.

[Patricia Gibson]

I am aware that the hon. Gentleman mentioned that the Advertising Standards Authority has been launching initiatives to crack down on such practices, but my point is that the kind of real change that he and I hope for has not come about.

A million consumers in rural Scotland face punitive surcharges. That has to stop. There needs to be better and greater dialogue between the UK Government and the delivery operators. The UK Government can and should regulate charges. Concrete and decisive action is needed to ensure that consumers in large areas of Scotland do not face higher delivery charges or even have their orders refused.

I first spoke out on this issue four years ago, weeks after first being elected as an MP, and in that time I have seen the Scottish Government do what they can to improve a bad situation over which they have no real power. This Parliament and this Government have the power to deliver the fairness and the inclusion that is needed. I urge the Minister to use her good offices to deliver change at long last. For the most part, self-regulation has failed. I really hope that we will not still be debating this injustice four years from now. We know what the issue is and we know that it can be remedied, so I hope that we can stop endlessly debating it and instead act. It really is time that my constituents on Arran and Cumbrae, and rural consumers right across Scotland and the UK, are no longer disadvantaged by this postcode tax.