ONE of the consequences of Guernsey Post Ltd’s very unhappy response to the regulator’s recommendation that the local utility be opened to more competition is to highlight the difficult role played by Treasury and Resources as shareholder, the representative of islanders who in effect own GPL.

Firstly, as the National Audit Office’s comprehensive list of recommendations in its September 2005 review of commercialisation and regulation made clear, it is an onerous role.

Secondly, it said the shareholder should take responsibility for resolving any conflict or trade-off between States objectives.

Yet in his comments yesterday, the T&R minister appeared to be siding with GPL management in saying the utility needed to be able to recoup its costs following Royal Mail increases. That may be understandable – anything less might wrongly imply a lack of confidence in Post’s management – but it seems to miss the point.

As the regulator has said in response to questions from this newspaper, Guernsey Post has received all the revenue it requested bar £1.2m., which the OUR believes needs to be recovered through greater efficiency.

That amount, given the figures on overtime, overheads and diversification, does not appear unrealistic or unattainable.

The other aspect, also touched upon by the OUR, is exactly whose interests are being represented. The union looks after its members, and was perhaps rather dismissive of its key customers in criticising their interests, but suggesting that the regulator is plotting the demise of the company is over the top.

GPL’s costs – those within its control – have risen substantially and the OUR is questioning whether all that has to be passed on to the customer. In particular, bulk mailers, who underpin Post’s operations, are under enormous cost pressures and cannot easily pass on any increases GPL might want to offset. They welcome competition because cheaper prices make the difference between remaining here or relocating.

With more than 600 jobs and a tax contribution of around £7m. a year, that’s quite a lot of customer interest to take into account and puts the GPL’s dividend to the States of £614,000 into context.

Guernsey Post and its staff must not become political footballs but neither should the wider picture be ignored – and that’s where T&R as shareholder comes in.