COMMERCE and Employment has backed the regulator’s decision to reduce Guernsey Post’s monopoly.

The department’s submission to the Office of Utility Regulation endorsed its proposals to reduce the area of mail over which Guernsey Post is protected from competition.

It was also highly critical of Guernsey Post’s understanding of its customers’ needs – particularly bulk mail customers.

However, Commerce’s robust views go against the majority of Policy Council, which wrote asking the regulator to hold back on reducing the reserved area pending further consultation.

The OUR ignored this request and announced that the reserved area would be reduced from April, much to the irritation of Housing minister Dave Jones (pictured).

Policy Council’s submission, signed by deputy chief minister Bernard Flouquet, said: ‘The Policy Council would strongly urge the director-general not to adjust the reserved area… in respect of this time period.’

The submission said the regulator’s draft decision had not sufficiently explained how new competition in the mail sector would be managed, and what its effects on the universal service obligation might be.