Dutch Govt proposes freezing postal rates until full liberalisation in 2007
The government is proposing freezing postal tariffs
until 2007 when full liberalisation of the post market is expected, the deputy minister for economic affairs said in a letter to parliament.
This follows an evaluation of the current tariff management system by the competition authority NMa and the postal and telecoms watchdog Opta as well as a study by the National Economic Research Associates.
The government said it is in favour of a phased liberalisation of the post market with the process complete in 2007. This is under the condition that Germany and the UK follow a similar timetable in liberalising their postal markets.
The tariff freeze is largely expected to benefit consumers, with postal operator TPG NV reacting disappointedly at the government’s decision, saying it will put further pressure on the profitability of its mail operations.
“This step is completely incomprehensible,” said TPG CEO Peter Bakker in a press release. “We are being punished for our success. There is no reason whatsoever to revise the current price control system, which works well. Over a period of twelve years, corrected for inflation, the price of a postage stamp has decreased by 30 pct.”
The government acknowledged that mail volumes are declining and said it would evaluate the decision on the tariff freeze regularly to ensure a proper return on investment for TPG.
TPG noted further that the minster’s decision “is a missed opportunity for achieving the required stability in the regulatory environment for the Dutch postal market.
“This stability is needed by TPG to prepare for fair competition with the European postal markets and is necessary to prepare the Dutch market for full liberalisation,” the company said. “The current decision does provide TPG with the clarity on tariff regulation, but lacks an all-encompassing view of the postal market so the decision of the ministry of economic affairs on prices lacks any context.”
Despite the tariff freeze, TPG said it is “pleased” that the government is following its suggestion to fully liberalise the postal market in 2007. TPG said it will take part in discussions with the government on working out the liberalisation in more detail.
TPG’s Bakker will hold a conference call at 10.00 am to discuss the government proposal.
At 9.12 am, TPG shares were down 0.03 eur to 16.30 while the AEX index added 2.21 points at 340.16.
