GEOFF CALLS FOR TIME TO THINK ABOUT POST OFFICE CARVE-UP

Deputy Geoff Southern will be challenging the potentially disastrous proposal to destroy the viability of our postal service in the name of free-market dogma, initially with this proposal to delay a decision until the consequences have been properly assessed.:-

The States are asked if they are of the opinion

To request the Minister for Economic Development to extend the period of consultation over the granting of postal licences to Citipost and HubEurope so that members may be fully informed of the consequences of such action by the JCRA

Report

On Wednesday 31st March 2010 the JCRA placed an advert in the JEP (see over) of its proposal to grant a Postal Operator’s licence to Citipost and HubEurope to convey large letters and packets, which includes CD and DVD fulfilment post. The closing date for comment is midnight 30th April 2010.

Jersey Post’s managing director has accused the JCRA of “failing in its duty to properly assess the impact on the traditional postal business.” Mr Carr stated that the decision to open the whole of the bulk business mailings market could result in substantial cuts to future services including a reduction of deliveries to every other day and the existing Post Office network being halved.

Despite being assessed in 2006 by the JCRA as an efficient operator, and recently agreeing a 4-year modernisation deal with the Communication Workers’ Union (CWU) which included the loss of 80 jobs, the Post Office see this as an “attack” on the only profitable part of the business leaving losses to be picked up by Jersey Post or the taxpayer.

The CWU agrees that the long-term viability of Jersey Post is seriously threatened by the introduction of competition to this market. They state that they “will not sit back and watch the decimation of this very valuable social service carved up and destroyed through the introduction of phoney competition designed for the benefit of a few at the expense of the many”. They are calling for urgent talks with all stakeholders including States members.

It is my opinion that such a radical move cannot just be allowed to proceed in such a timescale without full consideration by the Assembly of the potential impact on the infrastructure of the island.

There are no manpower and financial implications to this proposition.