Cyprus Post Office seeks autonomy to improve service
THE Cyprus postal service falls way short of EU standards, failing to reach even half of the EU target in postal delivery time, according to one official.
On average, around 40 per cent of standard letters reach their destination the following day in Cyprus, compared to the EU target of 85 per cent for priority letters, said Postal Service General Manager Vassos Vassiliou.
Vassiliou said the problem boiled down to a lack of flexibility in decision-making. Cyprus joins San Marino, Jersey, Monaco, and FYROM in being the only countries out of 43 European countries that still have a Postal Service functioning as a government department.
The EU has set a target to have 85 per cent of ‘priority’ letters reach their destination within a day of posting. Most EU citizens have a choice of sending a letter normally or paying a little extra and making it a ‘priority’ letter. The UK equivalent of this is the option of using a first class stamp to send a letter.
If it is posted by 12pm, it should be expected to arrive at its destination the following day.
According to Vassiliou, the Postal Service average falls way below the EU target, with around 40 per cent of letters reaching their destination the following day. Its maximum delivery rate only ever reached 50 per cent last year.
However, the Cyprus postal service does not have the option of a two-speed delivery system and all letters are deemed the same in importance.
The service plans to introduce the ‘priority’ system in the coming months but in order for people to be willing to pay for that service, they need to be sure they will get their money’s worth. If only 40 per cent of letters continue to meet their delivery target, then the faster postal option will not fare well with consumers.
Competition currently accounts for at least 10 per cent of the international postal market in Cyprus.
These factors have not gone unnoticed by Vassiliou, who recognises the need for the government service to improve its quality and eradicate excess bureaucracy.
“We are one of five countries out of 43 in Europe still working as a government department. To make a decision as a government department, you need approval from the Communications Ministry, Finance Ministry, Cabinet and so on. There is no flexibility,” he said.
“Postal services in other countries are either run by companies or autonomous organisations, like semi-government organisations. We are seeking autonomy, but this is a political decision,” he added.
Asked what steps would be taken in the meantime, since there is no clear timetable for the government to transform the Postal Service into a semi-government organisation, Vassiliou replied: “We are taking measures. We got a new machine at the sorting centre which reads post codes. This will help speed up the process. And we are increasing personnel. Last year we hired 30 employees and this year we are hiring another 29.”
The Postal Service head said the service was a profit-making outfit, but when asked how competitive it would be in the new European market, he said: “The EU is gradually liberalising to deal with competition. If changes are made here, then we can be competitive too.”
He acknowledged that bureaucracy was one of the problems that had to be dealt with as part of the changes.
Asked whether the postal service could attain autonomy from a government that last year rejected outright plans to privatise CyTA, Vassiliou said: “The procedure has started but it remains a political decision.”
Meanwhile, the postal service will now be receiving its licence from the Commission responsible for Telecommunications and Postal Services, meaning it will also come under their control. The Commissioner has the right to impose penalties if the quality of service is not satisfactory.
