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1240/5(3108)
WRITTEN QUESTION TO THE MINISTER FOR ECONOMIC DEVELOPMENT BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY, 21st NOVEMBER 2006
Question
- Will the Minister use hispowersunder Article 9(2) of the Postal Services(Jersey)Law2004,ifhe considers that it is desirable in thepublic interest todo so, to give to the JCRA written guidance in respect of the principles, procedures orpoliciestobe followed by the Authorityin relation to any other matter, inorderto direct the JCRAtoinvestigateandtoreport on whether there are potentiallyanti-competitive cross-subsidies in the trading conditionsof -
( i) O f fshore Solutions Ltd, and
( ii ) P r omail
and indicate in what timescale a response is to be expected, and if not, why not?
- Will the Minister informmemberswhen the JCRA will respond to the request for price rises on letter mail rates both locally and to theUK?
Answer
- T h e question of whether or not Jersey Post is engaging in potentiallyanti-competitive cross-subsidies with regard to eitherOffshoreSolutions Ltd, or Promail, is not a matter in thefirstinstance for me,as Minister of EconomicDevelopment. Rather, it is for theJCRA, as the island's independent and expert postal regulatory authority who has responsibility for issuing and enforcing Postal licences. As I haveevery confidence intheJCRAin dealing with thesematters, I do not believe that the use of directions or guidance under Article 9(2)is desirable ornecessary in dealing with any issue ofcross-subsidisation.
- A s part of the conditionsofthe license to operate issued by the JCRA, Jersey Post hasan obligation to ensure that its prices are cost-justified and not excessive. I am advised that the JCRAhas indicated that excessive prices mayalso constitute a breach of the competition law. If the JCRAbelieves that the prices are in breach of these provisions, it coulddecide to take enforcement action, and hasthepower to direct that prices bereduced, if appropriate. It would alsohave the powertoimpose financial penalties if it found that the price changes were in breachof the competition law.
In common with Jersey Telecom's licence, Jersey Post is required to notify the JCRA of any price increases at least 21 days before they come into effect. They are not required to obtain approval before making the price changes.