Postal reform law gains approval in Brazil's Congress
The lower house in Brazil’s National Congress is expected to conclude its deliberation of new regulations to restructure the country’s Post and Telegraph Company (ECT) this week. The main text of new regulations, allowing for the modernisation of ECT, was approved by Brazil’s Chamber of Deputies last week, leaving a nominal vote to be taken tomorrow (August 23) on amendments proposed by the opposition parties.
Once the regulation passes the Chamber of Deputies, it will need approval from the Senate and presidential sign-off before it becomes law.
The new regulations, Provisional Measure 532/11, will allow ECT to expand outside its current operational boundaries – including into the provision of electronic postal services, more financial services and logistics operations abroad.
ECT will be allowed to establish new subsidiaries, operate outside Brazil for the first time by establishing foreign-based offices, and have powers to buy stakes or overall control in other companies.
The new law will also see ECT given a new corporate status and management structure, under president Wagner Pinheiro with decisions taken by a board under overall chairmanship of Brazil’s communications minister, Paul Bernardo.
Modernisation or privatisation?
Postal union members protested privatisation in Brazil’s Congress last week – photo: Leonardo Padro, CoD
Last week’s debate in the lower house of the Brazilian National Congress in Brasilia saw the measure passed by 218 votes to 151, with opposition parties denouncing the regulation as opening the door to privatisation, while the government argued the law was necessary for the modernisation of the company.
During the debate, postal union members were present to protest the prospect of privatising the Post Office.
This week’s vote will tie up loose ends in terms of opposition attempts to scrub new powers for ECT to acquire stock in other companies from the legislation. The amendment, which seeks to protect the company from possible attempts to privatise it, are not expected to pass.
ECT said the proposed changes within the new regulations will ensure a strengthening of Brazil’s postal market, to become more modern, competitive and profitable.
The company said the regulation was part of a set of actions from the federal government to provide the company with tools to compete on an equal footing with large multinational logistics companies, as well as providing a more efficient, quality service for Brazilian citizens.
Among its new services being developed, the company told Post&Parcel that it is particularly looking for a “strong presence” in the field of electronic postal services.
“Various possibilities are being studied and one of our more interesting projects is the Digital Post – our Hybrid Mail solution – which consists in receiving documents electronically before printing them out at one of our Post Bulk Printer location closest to the delivery point,” said Pinheiro.
