ONE of the things that even Guernsey Post’s greatest supporters will struggle to understand is how the utility managed to rake up costs not so very far shy of £1m. pursuing a dream to become a savings bank only to be told ‘no chance’ by the regulators.
While hindsight is a wonderful thing, a quick ‘Gordon here’ phone call from GPL’s energetic chief executive to the Guernsey Financial Services Commission a few months back could have saved the taxpayer a very tidy sum in that the £860,000 used to date could have been remitted to Treasury and Resources as an extra dividend.
Having Guernsey Post offer local savings and investment products and a Guernsey equivalent to Premium Bonds is a good idea. It would be welcomed by islanders and builds on GPL’s already excellent reputation, but banking isn’t the same as running a postal business and savers would want more than just a trusted brand. They would demand 100% security – guaranteed.
That, obviously, would have to come from the States of Guernsey, exposing the taxpayer to potentially unlimited liability, and be supervised by regulators appointed by the same government.
While there are potential ways around this, and islanders will hope that any problems can be overcome, the issue is a further complication in the row between GPL and the regulator, which is far from convinced that Guernsey Post is as lean and efficient as it should be or that the costs of its other interests are not being passed on to postal customers.
The Office of Utility Regulation’s draft decision report makes bleak reading about the increasing level of GPL’s costs and how any loss of competitive edge could force some of the island’s bulk mailers to leave.
The fulfillment sector in which they operate is one of the island’s under-recognised economic areas, providing employment, shipping, logistic and taxation benefits – as well as enabling GPL to make a profit.
Ensuring its well-being ought to be a priority for GPL, Treasury and Resources and Commerce and Employment – which is exactly what the regulator is saying in its report that everyone seeks to criticise.
OUR and a common postal goal
ONE of the things that even Guernsey Post’s greatest supporters will struggle to understand is how the utility managed to rake up costs not so very far shy of £1m. pursuing a dream to become a savings bank only to be told ‘no chance’ by the regulators.
While hindsight is a wonderful thing, a quick ‘Gordon here’ phone call from GPL’s energetic chief executive to the Guernsey Financial Services Commission a few months back could have saved the taxpayer a very tidy sum in that the £860,000 used to date could have been remitted to Treasury and Resources as an extra dividend.
Having Guernsey Post offer local savings and investment products and a Guernsey equivalent to Premium Bonds is a good idea. It would be welcomed by islanders and builds on GPL’s already excellent reputation, but banking isn’t the same as running a postal business and savers would want more than just a trusted brand. They would demand 100% security – guaranteed.
That, obviously, would have to come from the States of Guernsey, exposing the taxpayer to potentially unlimited liability, and be supervised by regulators appointed by the same government.
While there are potential ways around this, and islanders will hope that any problems can be overcome, the issue is a further complication in the row between GPL and the regulator, which is far from convinced that Guernsey Post is as lean and efficient as it should be or that the costs of its other interests are not being passed on to postal customers.
The Office of Utility Regulation’s draft decision report makes bleak reading about the increasing level of GPL’s costs and how any loss of competitive edge could force some of the island’s bulk mailers to leave.
The fulfillment sector in which they operate is one of the island’s under-recognised economic areas, providing employment, shipping, logistic and taxation benefits – as well as enabling GPL to make a profit.
Ensuring its well-being ought to be a priority for GPL, Treasury and Resources and Commerce and Employment – which is exactly what the regulator is saying in its report that everyone seeks to criticise.
Article posted on 7th November, 2009 - 2.30pm