Tag: Government

Commission to study future of French post office

Posted by | Sep 17, 2008 | |

A commission will look at the future of the French post office, which is aiming for partial privatisation in 2010, government spokesman Luc Chatel said.

State-owned La Poste has announced plans for a partial sell-off of its activities ahead of the full liberalisation of the European postal services market from 2011.

Speaking after a meeting of the cabinet, Chatel said the 22-strong commission, to be headed by a former top executive of EDF, Francois Ailleret, would be made up of a wide range of members including customers, staff representatives and parliamentarians.

‘This commission will be charged with considering the future of the post office, reflecting on what developments are necessary, given the European environment and the competition that will appear on Jan. 1, 2011.

The commission will consider the issue during October and November, Chatel said.

Any move towards privatisation would require the postal service to become public limited company instead of a branch of the civil service.

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In 2011 national postal operator of Azerbaijan can start operating with profit

Posted by | Aug 7, 2008 | |

The Ministry of Communications & Information Technologies of Azerbaijan suggests increase of subsidizing for postal sector.

At a Cabinet Ministers session held yesterday Ali Abbasov, the communications minister, said that for January-June 2008 postal sector earnings grew by 30 pct.

“Azerbaijan still encounters difficulties that are distinctive for post-Soviet countries. To ensure profitability and high proceeds of postal institutions they should be equipped with modern electronic and transport systems. With this purpose the country has been realizing Financial Service Development Project since 2005 with support of World Bank. The project completion is scheduled for late 2008 and already next year it is planned to launch new services. But switching to profitable use of new services will be carried out for the next two or three years,” Abbasov said.

The minister proposes to increase subsidizing for postal sector to ensure its profitability.

For the last two years Azerpocht (national postal operator) is financed state investments of AZN 2-3 million annually. If for the next two years subsidizing for postal sector are increased, then according to our estimates, Azerpocht will start operating with profit since 2011,” Abbasov said.

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Postal Service wants limits on its universal service obligation (U.S)

Posted by | Jul 31, 2008 | |

The U.S. Postal Service wants to exempt its competitive products (like Priority Mail and package services) from the universal service obligation. Doing so would allow it to cut back on offerings in sparsely populated areas where business is thin.

The Postal Service argues that those services shouldn’t be treated differently than those of competitors such as FedEx, DHL and UPS. An exemption would allow the Postal Service to choose which competitive products it offers in a given market, and what standards of service to apply. Products covered by the universal service obligation such as first-class mail, must be offered in a uniform fashion across the country.
But even if the agency gets approval from Congress to exempt those competitive services from universal service, an international treaty would create a paradox: The Postal Service would still be required to deliver mail and packages coming into the United States from overseas, even if it doesn’t offer the products in a given market.

The Postal Service made its request for the exemption in a lengthy set of comments submitted to the Postal Regulatory Commission last week. PRC has also solicited public comment on the universal service obligation; the commission will submit a final report to Congress in December.

Under the 2006 Postal Accountability and Enhancement Act, postal products were divided into two categories: market-dominant and competitive. Products in the former group (like first-class mail) are covered by the universal service obligation because the Postal Service has a monopoly over their delivery. But the latter group competes with products offered by commercial shippers like UPS and FedEx.

An exemption for the competitive products would be just one step toward restoring profitability at the financially troubled Postal Service. The agency posted a USD 706 million loss in the second quarter of 2008; decreasing mail volume and increasing fuel costs have squeezed its bottom line. And, the Postal Service can’t rely on market-dominant products to reverse that trend: Price increases for those products are capped at the rate of inflation.

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Brown to head Postcomm (UK)

Posted by | Jul 30, 2008 | |

Postcomm has appointed Tim Brown as Chief Executive, replacing Sarah Chambers.
Brown will replace Chambers when she leaves in September after her four-year secondment from Business, Enterprise and Regulatory Reform (BERR) to Postcomm comes to an end. Brown will also become a Postcomm commissioner.
Brown joined Postcomm at the beginning of 2008 as director of market development, having worked previously at DHL Express UK and Royal Mail.
Postcomm chairman Nigel Stapleton says: Tim’s extensive experience of the sector, gained at Royal Mail and in the wider competitive market, will be invaluable as we work towards establishing a new regulatory framework that will secure the universal service and provide more choice for all mail users and providers.
Chambers joined the postal regulator in 2004 from the Department of Trade & Industry, where she headed the automotive unit. She replaced Martin Stanley.

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