Tag: Malta

Malta granted two-year concession for postal services liberalization

Posted by | Oct 3, 2007 | |

Malta and another 10 EU member states have managed to obtain a two-year concession from the EU before being obliged to fully liberalize their postal services market.

During an EU Telecoms Council held in Luxembourg, EU ministers responsible for postal services agreed to introduce total liberalization in this sector as from the beginning of 2011.

However, due to the recent privatization of Maltapost, Malta requested, and was granted, a further two-year transitional period and will now only be obliged to introduce full liberalization by the beginning of 2013.

Competitiveness and Communications Minister Censu Galea welcomed the deal and said this will give Malta more breathing space.

Mr Galea said Malta believes the liberalization of the postal services will benefit consumers and the economy.

“Malta feels that the liberalization of the postal services sector is important and will bring about improved services for the consumer. Existing service providers will be motivated to become more reliable and efficient, offer new services and further increase their customer focus in the light of potential competition from new market entrants,” he said.

A few weeks ago, the government sold another 25 per cent stake in Maltapost to Red Box, a fully-owned subsidiary of Lombard Bank which now holds the majority of the company’s shares. The government has also announced its intention to float the remaining shares of the company on the Malta Stock Exchange early next year.

National postal operators such as Maltapost still enjoy a monopoly on mail below a certain weight (currently a maximum of 50 grammes), known as the “reserved area”. However, with the new EU agreement, this will cease.

The same EU regulations already oblige member states to provide a basic service known as the “universal” package, which comprises at least one delivery and collection, five days a week, for every EU citizen.

The government will still be able to subsidies this service in cases of remote and “non-commercial” areas.

The postal service in Malta is regulated by the Malta Communications Authority.

Read More

Malta Post: Third past the post

Posted by | Sep 12, 2007 | |

Malta has just joined Germany and the Netherlands as the third EU member state to fully privatise the postal service.

Privatization has always been something of a hot potato in Malta: more so in the case of the national postal service, whose previous partial privatization resulted in a nosedive in service standards and a disaster for consumers.

So it is surprising that support for the company’s total privatization now comes from the same trade union which in the past had wrestled with former major shareholders, New Zealand company Transend.

Union Haddiema Maqghudin general secretary Gejtu Vella thinks that the total privatization of MaltaPost will bring to an end a “10-year trauma” for postal workers.

Vella regrets that MaltaPost had to pass from a turbulent decade in which it was first turned in to a public company in the mid 1990s, only to revert to a government department in 1998 and to be partially privatized in 2002 when New Zealend state company Transend bought an equity share.

The UHM, which went on the warpath when Transend tried to downsize the number of postal workers, is satisfied by the job guarantee given by Maltapost’s new owners. Maltapost has now promised not to dismiss any worker except for disciplinary proceedures and normal retirement.

Vella attributes the difficulties facing the postal sector worldwide to the arrival of the internet.

Gejtu Vella is also confident that the involvement of a reputable bank will ensure that the new company will survive the European-wide liberalization of the sector in 2010.

Although the EU commission wants the sector to be liberalized by that date, the EU does not impose the privatization of postal services, which are still deemed an essential service.

Postal services in Europe remain largely in public hands, although there has been a movement towards the liberalization of these services with the United Kingdom and social democratic Sweden taking the lead.

Read More

Cabinet approves sale of Maltapost shares to Lombard Bank

Posted by | Sep 10, 2007 | |

The Cabinet yesterday approved the implementation of the second of three stages in the privatisation of Maltapost, which is the transfer of 25 per cent of the Government’s shareholding to Redbox Ltd, a wholly-owned subsidiary of Lombard Bank plc. As a result of this transfer Lombard Bank plc will effectively become the majority shareholder in Maltapost plc with 60 pct of the shares.

Government said the agreed price for the shares was Lm 1,217,585 (EUR2,836,210). This represented a 50 per cent premium over the net asset value of the shares based on the last audited accounts of the company. Based on the average profits of Maltapost in the past three years, the price represents a price to earnings ratio of 68. So, apart from believing that this step was strategically important for the company, Government also believes that the agreed price is an advantageous one.

The Cabinet also approved the proposal by Investment, Industry and IT Minister Austin Gatt that Maltapost plc should be fully privatized.

Government shall, in the coming months, initiate the process for selling the remaining 40 per cent of its shares via an Initial Public Offering on the Malta Stock Exchange.

Government believes it should not operate in commercial areas which are best left to the private sector.

Read More

Transfer of 25 percent of Maltapost shares approved

Posted by | Sep 4, 2007 | |

The cabinet of ministers has approved the transfer of 25 percent of shares the government holds in Maltapost plc. to Lombard Bank plc.

The second of three phases of the privatization of Maltapost now sees Lombard Bank as the holder of 60 percent of the shares in the company.

In the coming months, following the advice given by the Ministry for Investment, industry and Information Technology, the government will be offering the remaining 40 percent of shares to the public to complete the total privatization of the company.

The government believes that it should not operate where such operations can be carried out by the private sector. According to European law postal distribution should be liberalized within three years. The market is regulated by the Communications Authority so as to assure regulated prices.

At the moment post weighing more then 50 grams is part of a liberalized and competitive market. The EU is currently studying the regularization of postage in order to open the postal market for competition by 2009.

Shortly the government will be signing an agreement with Lombard Bank plc. in order to assure that postal obligations are met.

The ministry also held meetings with the UHM who represent Maltapost employees to explain the privatization process.

Maltapost employees prior to 1995 can opt to move once again to a post within the governmental departments as stated in the 1996 agreement regarding public service employees affected by the privatization process.

Read More

Malta Post: Future of postal workers discussed

Posted by | Aug 11, 2007 | |

The Union Haddiema Maghqudin has met Investments Minister Austin Gatt to discuss the future of Maltapost employees in connection with the company’s privatization.

In a statement yesterday, the union said it had secured a guarantee that no worker will be laid off, assurances the ministry had already made when announcing the privatization.

On July 30, the ministry had announced that Lombard Bank Malta plc had become the company’s major shareholder and that Malta post’s privatization would be completed once it sold its remaining shares on the Malta Stock Exchange.

Several points were discussed during the meeting, among them the right of government employees to return to their former offices and departments.

Those who had had joined the government before 1979, but chose to remain with Malta post would retain the right to a sum of money from the Treasury.

In the coming days, the union will be meeting Lombard officials to further discuss the employees’ future. It will also call a meeting for the workers to inform them of the outcome of these meetings.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest