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

2. 2 POLICY DETERMINATION PROCESS POLICY DETERMINATION PROCESS 1997 - Green Paper on Postal Policy published for public discussion 1997 - ’98 Public Consultation June 1998 – White Paper on Postal Policy published (for general knowledge)

3. 3 POLICY ON EXCLUSIVITY (Reserved area) Post Office granted exclusivity in reserved areas (para. 2.35 @ page 31 of White Paper) and protected reserved areas (para. 2.46.3 @ 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. 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. 5 POLICY ON NON-RESERVED Non-reserved services offered in free competition (para. 2.48 @ p. 33) 2.48.1 Parcel services; 2.48.2 Courier services; These are dealt with in Schedule 2

6. 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. 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. 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. 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. 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. 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)