This Is Guernsey

By Nick Mann

GUERNSEY POST’S dispute with the regulator could end up in a legal battle.

Chief executive Gordon Steele (pictured) said any appeal to the Royal Court would have to be within a month of the Office of Utility Regulation’s final decision on proposals to break up the utility’s monopoly.

However, he would not be drawn on whether the company would pursue that, preferring instead to bank on political backing. ‘We’re hoping that we can get some support from the Policy Council and we know there are deputies talking about a requete [a petition to the States],’ said Mr Steele.

The OUR proposal to open up the postal market to competition has provoked an angry response. In a bid to win support, Guernsey Post met Policy Council ministers for an hour on Monday. ‘We took them through our case, our concerns,’ said Mr Steele. ‘We’ve now spoken to the Policy Council, Postwatch and lots of customers.

‘We’ve spoken to the Institute of Directors and the Chamber of Commerce. The one person missing is the regulator. We’d really like to talk to the regulator, but it seems that’s not going to happen.’

Asked about possible court action or a requete attacking its proposals, the OUR declined to address the matter directly. However, it denied that its door was closed to discussion.

‘The OUR met Guernsey Post on Monday and director-general John Curran spoke yesterday [Thursday] with Guernsey Post’s chief executive and confirmed that the OUR had allowed the full Royal Mail charge and are seeking efficiency savings of £1.2m. next year.

‘As is normal with these issues, we would anticipate more discussions before any final decision is made.’

There is a deadline of 20 November for all comments on the draft decision, with the final one to be delivered mid-December.

‘Then we have 28 days to launch a legal appeal to the Royal Court, if we choose to,’ said Mr Steele.

It is unclear, however, whether a requete would have any chance of success.

As part of the draft decision, Mr Curran states that he has taken legal advice over whether the States can interfere with his decision-making powers on GPL’s monopoly position.

The OUR’s view is that deputies have devolved responsibility for assessing and amending the reserved area to the regulator. It is therefore his decision alone whether to end Guernsey Post’s monopoly, Mr Curran has said.

Guernsey Post said it had answered hundreds of questions but could not get any real discussion or explanation about larger issues such as opening up the market.

‘We find that really distressing. My door is open – we’d really like to have the debate,’ said Mr Steele. ‘What we’re trying to do is run a business successfully on behalf of the people of Guernsey, run it really well, and deliver a fantastic postal service and to have a secure future for the postal service and staff.’

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Article posted on 7th November, 2009 - 2.30pm