ending Guernsey Post’s monopoly could be disastrous for the States utility, according to its chief executive.

Gordon Steele feared that the States could end up subsidising a loss-making postal service if ‘the big players’ were allowed in to cherry-pick the best bits of the business.

‘Nobody else will want to run the branches, which is really expensive, and carry out deliveries and collections six days a week.

‘That just wouldn’t be sustainable and could lead to the States having to subsidise a loss-making postal business, which is just what we don’t want.’

In a consultation document released yesterday, the Office of Utility Regulation spoke of increasing competition in the postal market.

However, Mr Steele said that OUR director-general John Curran was failing to recognise the island’s uniqueness.

Instead, its thinking on post was in line with models in the UK and Europe, which was exactly what a small community such as Guernsey did not need.

‘He talks about the UK being a good model, but actually I think it’s a dreadful one,’ said Mr Steele.