DEPUTIES are being lobbied against the OUR decision to dilute Guernsey Post’s monopoly.
However, initial reactions have been mixed.
The Guernsey branch of the Communication Workers Union has vowed to fight the regulator’s decision to open up the market by reducing Guernsey Post’s reserved area, and secretary George Jennings (pictured) is seeking political support.
‘The CWU does not intend to sit idly by while the jobs of our members and the services that we provide to the people of Guernsey are destroyed and we call upon the deputies of the island to act to curb this wanton destruction of an essential service,’ he said.
The regulator has announced Guernsey Post will see its monopoly on items costing less than £1.35 to post, reduced to cover only letters and large letters costing less than £1.
That was a compromise, after uproar during the consultation period over the initial suggestion it be reduced 65p.
‘The lowering of the reserved sector to £1 and the complete freeing up of the packet market, which he intends to do in the Bailiwick using the same model that has been used to decimate the service provided by Royal Mail to the UK public, will have a disastrous and irrecoverable effect on the local service,’ said Mr Jennings.
‘The decision to allow outside competitors to come into the island and cherry-pick the profitable parts of the postal market can only result in a deterioration of the service that we provide, with increased cost to the people of Guernsey.’
However, some States members who initially supported Guernsey Post now consider that the regulator has found a fair compromise.
Deputy Mike Hadley said he would continue to listen to both arguments but he had been swayed.
‘Initially, I was opposed to any changes that would affect Guernsey Post because I am keen to protect its viability,’ he said.
However, having contacted businesses involved in mailing, he said he had seen the bigger picture.
‘I think that in the end the regulator has made the right decision and I am convinced that the universal service that we are all keen on and the jobs of postal workers are not at risk.’
Deputy Tony Spruce, who said he had previous experience negotiating with regulators when working in the gas business, thought the compromise was all part of the OUR’s plan.
He, too, believed the right decision had been made.
‘I think the draft decisions were a part of a negotiation strategy – I should think the OUR knew very well that Guernsey Post would react vehemently.’
He brushed off the CWU’s reaction.
‘It’s totally over the top,’ he said.
Deputy Spruce pointed out the significant contribution the bulk mail companies made to the island through tax and employment.
‘You cannot have a protectionist policy – the regulator is just doing the job he was given by the States.’
‘All Guernsey Post has to do is be a little more competitive and cut costs a bit.’
The Treasury and Resources Department, the shareholder in Guernsey Post, was undecided over what move to make.
Treasury minister Charles Parkinson said he had asked Guernsey Post to advise the department what it considered the impact of the OUR decisions would be.
‘They will model the effects on revenue, which should take a week or two – when we have that information we will form a view on whether we wish to comment,’ he said.
Article posted on 28th December, 2009 - 2.29pm
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