A PRIVATE postal firm is putting York postmen to work.

UK Mail, which has a site in Murton Lane, York, today revealed that it has signed a groundbreaking contract with Royal Mail and Powergen.

UK Mail daily collects and sorts 70,000 letters to the customers of Powergen, and Royal Mail postmen deliver them within a guaranteed two days on a Business Class basis.

The first York batches of Powergen bills arrived at the Murton Lane warehouse on May 10, but UK Mail, a subsidiary of Business Post Group Ltd, has waited to ensure smooth delivery before publicly announcing the deal.

Now Guy Buswell, managing director of UK Mail, is planning to target other businesses in the York area offering the same service from Murton Lane.

But they have to be big enough to mail out about 5,000 letters a day.

Mr Buswell said: "In a few years time, perhaps we will be able to target small and medium-sized enterprises in the city."

That whiff of hope comes at a sensitive time for both the York business community and Royal Mail.

Anger erupted in January when firms in the YO area complained of huge disruption to their mail when Royal Mail cut down from two deliveries to one, with some firms not receiving letters until lunchtime. Mr Buswell said: "For nearly 400 years, the collection and delivery of letters has been the exclusive domain of the Royal Mail. In the year 2000 the Postal Act suggested that the Royal Mail should open its network to other operators.

"It's taken four years and we are the pioneers, having agreed a tariff and operating plan with Royal Mail.

"Now, for the first time, there is a choice for business customers. Powergen is the first to benefit from this.

"There are many successful businesses in the York area and we are committed to providing them with a cost-effective alternative with additional flexibility on mail collections."

To mark the breakthrough, UK Mail is offering a limited edition of 10,000 commemorative stamp covers to the public to celebrate the first day of service.

Each one bought at £6.95 plus postage and packing will include a donation to children's charity National Children's Homes.

Updated: 09:35 Tuesday, July 20, 2004