TPG says Dutch govt’s call for price freeze ‘unnecessary’

TPG NV have said Dutch minister for Economic Affairs Laurens-Jan Brinkhorst's proposal for a price freeze until 2007 on mandatory postal services which were previously subject to price control is disappointing and unnecessary.

TPG CEO Peter Bakker said that a price freeze for the next three years is 'unnecessary'.

'There is no reason whatsoever to revise the price control system which worked well in the past and led to extremely low postal rates for the consumer… Over a period of twelve years, corrected for inflation, the price of a postage stamp has decreased by 30 pct.' Minister Brinkhorst today released his vision on the postal market in the Netherlands, calling also for the full liberalisation of the postal market in 2007, conditional upon full market liberalisation in the UK and in Germany.

Press release from TPG – 22.1.04
TPG CONFIDENT WITH CLEAR ROUTE TOWARDS LIBERALISATION IN
MINISTER OF ECONOMIC AFFAIRS POSTAL VISION

Price freeze extension to 2007 disappointing

Minister Brinkhorst of Economic Affairs has today released his vision on the
postal market in the Netherlands.

The key elements of the postal vision are:

– Full liberalisation of the postal market in 2007 (conditional upon full market
liberalisation in the UK and Germany)

– Price freeze until 1 January 2007 on the mandatory postal services
previously subject to price control

– From 2007, a Universal Service will be subject to a price cap system based
on inflation or consumer price index

– Universal Service Obligation after liberalisation restricted to single items at
fixed rates; obligation to deliver bulk mail letters up to 50 grams for a
transitional period

– Competitors and customers to be treated equally in terms of rates and
conditions

TPG recognises that the postal vision provides clarity on the most important
aspects of postal regulation and gives a long-term framework for the
development of the postal market in the Netherlands. In particular, TPG is
pleased with the policy regarding liberalisation as this properly addresses the
pace of liberalisation in Europe and specifically in the UK and Germany, where
liberalisation is also scheduled to take place in 2007. However, the imposition
of a price freeze until 2007 is disappointing.

CEO Peter Bakker: “A price freeze for the next three years is unnecessary.
There is no reason whatsoever to revise the price control system which
worked well in the past and led to extremely low postal rates for the consumer
as a result of consistent sound entrepreneurship, innovation and efficiency.
Over a period of twelve years, corrected for inflation, the price of a postage
stamp has decreased by 30%.”

On the other main aspects of the postal vision TPG is broadly in agreement.
TPG agrees that a basic service level and quality should be guaranteed for
customers in a liberalised market via a Universal Service Obligation. Also TPG
understands that competitors and customers should be treated alike when it
comes to rates and conditions.

TPG will provide the Ministry with its detailed comments and suggestions
regarding the postal vision document. It is expected that the Government's
postal vision will be sent to Parliament by the end of February 2004.

TPG said it is pleased with the policy regarding liberalisation as this 'properly addresses the pace of liberalisation in Europe and specifically in the UK and Germany, where liberalisation is also scheduled to take place in 2007.'

TPG added that it is broadly in agreement with the other main aspects of the government's vision for the future of the postal service.

TPG will provide the ministry with its detailed comments and suggestions regarding the postal vision document.

The government's document will be sent to Parliament by the end of February.