1 PRESENTATION TO SELECT COMMITTEE ON LABOUR, COMMUNICATIONS AND PUBLIC ENTERPRISE POSTAL SERVICES AMENDMENT BILL IN CONTEXT 22 OCTOBER 2003.

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Presentation transcript:

1 PRESENTATION TO SELECT COMMITTEE ON LABOUR, COMMUNICATIONS AND PUBLIC ENTERPRISE POSTAL SERVICES AMENDMENT BILL IN CONTEXT 22 OCTOBER 2003

2 POLICY DETERMINATION PROCESS POLICY DETERMINATION PROCESS Green Paper on Postal Policy published for public discussion ’98 Public Consultation June 1998 – White Paper on Postal Policy published (for general knowledge)

3 POLICY ON EXCLUSIVITY (Reserved area) Post Office granted exclusivity in reserved areas (para. page 31 of White Paper) and protected reserved areas (para. p. 33) Rationale: To compensate SAPO for cost of universal service NB: Achieved by sufficient mail volumes to spread fixed costs Policy in line with international trends

4 INTERNATIONAL COMPARISONS The UPU does not prescribe universal service for national governments In Germany, the Postal Act of 1998 provides for a statutory exclusive licence to Deutsche Post - value-added services not included in statutory exclusivity UK and France have granted Royal Mail & La Poste exclusivity in respect of items weighing up to 350g

5 POLICY ON NON-RESERVED Non-reserved services offered in free competition (para. p. 33) Parcel services; Courier services; These are dealt with in Schedule 2

6 LEGISLATION – SEC. 16 Deals with licensing; Was intended to capture stated policy; Provides for SAPO exclusivity – 16 (2) & (8); (See Schedule 1 of the Act) Sec. 16 (5) contra to stated national policy

7 LEGISLATION cont’d (a) - deems couriers licensed to provide Schedule 1 (which is reserved) Creates confusion in respect of licensing Licensing relates to reserved services, registrations relate to non-reserved services Therefore, couriers can only offer Schedule 2 services (be registered)

8 Sec 16 (5) concluded Amendment intended to:- bring Act in line with stated national policy; Remove confusion around licensing and registrations; Clarify exclusivity and role of couriers

9 Courier services Schedule 2; Provide Sec 16 (5) (d) services, namely: Collect and receive; Track & trace; Time-based delivery (next-day); Premium-charge; Customs clearance (where applicable)

10 Courier services cont’d Will continue in business Must align activities with the Act / law No threat to jobs No threat to business activity

11 COMPETITION IN SECTOR There is competition in non-reserved (Schedule 2) area Minister will determine time for competition in reserved (Schedule 1) area in terms of section 16 (2)