Tag: Finland

Finland: Postal services disappearing from remote areas

Postal services of small rural communities are disappearing, as increasing numbers of shopkeepers decide that doubling as a post office is not worth the bother.

Many say that the compensation paid by Itella Corporation (formerly Finland Post), which is responsible for postal services in Finland, is insufficient.

The compensation paid by Itella to private businesses for providing postal services largely depends on how many packages and other deliveries customers pick up from the office.

Itella’s Ritva Vuorenmaa says that cooperation with business owners is functioning well.

“Most of the entrepreneurs are very satisfied with the cooperation”, she says. “They have calculated that they get benefits from increased customer and cash flow, in addition to what we pay them.”

In recent years the outsourcing programme has led to a situation where in June 2008 Itella administered directly only around one in six post offices, with roughly 1,000 of Finland’s 1,200 post office service points in private businesses such as shops or kiosks.

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