Rivlin seeks 1.2% average cut in mail rates
Minister of Communications Reuven Rivlin has asked for an average 1.2% reduction in mail rates. The Knesset Economics Committee today discussed the Israel Postal Authority’s proposal not to revise the NIS 1.20 rate for domestic letters, while cutting the tariff for bulk mail by 5.2 and raising the rates for other services by an average of 1.6%.
Mail rates have not be revised for over three years. The Economics Committee postponed its vote to next Monday, mainly due to sharp criticism leveled against the proposed changes in the bulk mail rate. It was alleged that the Postal Authority’s proposal was intended to push aside private competitors in order to retain its dominant market share.
Ministry of Communications director general Ure Olenek told the committee that the ministry will ask for another 4% average reduction in rates in January 2003.
Rivlin said the Postal Authority wanted to tighten the relationship between service costs and rates, based on the Postal Authority’s pricing and the reduction of cross-subsidization between its services.
Published by Globes [online] – www.globes.co.il – on August 7, 2002
