Swiss Post statement: Financing not guaranteed for basic service

Swiss Post is not pleased with today’s decision to lower the monopoly limit within a short time to 50 g. A reduction of this type also requires a simultaneous adjustment of the operating conditions. Furthermore, this overly hasty procedure contradicts the current stance taken by the Federal Council and Parliament.

PostFinance’s scope limited

Swiss Post is sorry that the Federal Council has not taken the further development of PostFinance’s activities into consideration. This limits the earnings power of Swiss Post and is detrimental to the Swiss economy, as the 43 billion francs in customer deposits cannot be invested in the Swiss SME and mortgage market. Swiss Post is continuing to call for expansion of its activities so that PostFinance can offer mortgages and loans in its own name.

Fund unsuitable

Swiss Post wishes to continue providing a good, nationwide basic service in future. This constitutes an important basis for Switzerland’s economy and the whole population. The Federal Council wants to adhere to the current level of the basic service but is taking away Swiss Post’s financing basis by abolishing the monopoly. In order to finance Switzerland’s extensive basic service we need the appropriate resources. Without such a residual monopoly, this would have to be downsized. The alternatives – a fund to be set up primarily by Swiss Post or compensation to be paid by the Confederation – are not suitable instruments. Swiss Post hopes that the consultation will produce a more balanced result.

Swiss Post needs greater flexibility

The Federal Council’s draft postal law limits the entrepreneurial scope of Swiss Post excessively. It must be able to organize itself along entrepreneurial lines ahead of full market liberalization. A number of studies show that both the basic service and the company itself would otherwise suffer and structural financing shortfalls would arise. This is why Swiss Post is calling for fewer restrictions from the politicians. The draft law does not provide for a level playing field, even if this is what the Federal Council intends. In the specific proposal, Swiss Post will ensure that it is not disadvantaged in comparison with private-sector competitors. In view of the rapid opening-up of the market to competition, the Federal Council’s proposal to introduce collective employment solutions for the respective sectors will have to be implemented quickly.

Discussion about the purpose of liberalization

In its press release, the Federal Council did not mention a reason for liberalizing the postal market. Previously it justified this by citing trends in the EU, with which Switzerland has to keep pace. In contrast to many EU countries, customers in Switzerland are very satisfied with the services that Swiss Post provides, and, according to the Federal Department of Environment, Transport, Energy and Communication, Swiss Post’s prices are appropriate. Swiss Post thus believes there is still a considerable need for more discussion regarding the complete liberalization anticipated by the proposed law.