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1240/5(5346)
WRITTEN QUESTION TO THE MINISTER FOR ECONOMIC DEVELOPMENT BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 11th MAY 2010
Question
"Following the undertaking given on 20th April 2010, will the Minister inform members what request he has made to the Jersey Competition Regulatory Authority over the consultation timescale concerning the granting of class 1 postal licences to two competitors to Jersey Post and inform members what the new timescale for the process is now?
Will he advise what meetings, if any, he has had with stakeholders to address the concerns expressed by Jersey Post and the Communications Workers Union and if not why not?
What steps, if any, has he taken to ensure that the impact of the introduction of new competitors in this sector on the maintenance of postal Universal Service Obligations are made clear to the Jersey public, and if no steps have been taken, when will he do so?"
Answer
Having given an assurance to the Assembly, I wrote to the JCRA on 29th April 2010 asking that the consultation regarding the grant of Class 1 Licences to Citipost DSA Limited and Hub Europe Limited be extended. In their reply of 30th April, the JCRA stated that an extension was not necessary given that the consultation had already lasted 31 days, (rather than the statutory 28 days) and that 10 comments had already been received. Both main interested parties, namely Jersey Post and the Communications Workers Union had already responded and it was unlikely that further responses from other parties would be received. They then noted that the JCRA would consider these responses as required by the Postal Services (Jersey) Law 2004 before moving to a Final Notice. This Final Notice would also be subject to a 28 day period during which any appeals regarding the Final Notice can be made.
Since the decision was announced by the JCRA that it was considering opening up the postal market, I have had a number of meetings with representatives of Jersey Post, together with some of their clients and I am fully aware of their concerns. To that end, I noted in my letter to the JCRA that I was concerned that no decision should be made regarding the grant of these proposed licences until the outcome of the efficiency review into Jersey Post had been concluded and that I was prepared to give them written guidance to that effect. Although the JCRA sees the efficiency review as separate from the possible award of new licences, they have given an assurance that the outcome of the efficiency review would be considered as part of the award if relevant to do so.
I am also mindful that the Universal Service Obligation is an important issue for Islanders. It is important to note that the Postal Law prevents a situation where the advent of competition adversely affects the USO and so the JCRA will be mindful of this. However, I think that Deputy Southern is right to draw attention to the need for a wider debate around the USO and what Jersey Post can realistically be expected to provide given the costs involved. To that end I have instructed my department to liaise as a matter of some urgency with the JCRA and Jersey Post to produce and publish a public consultation on the USO in order that Islanders have a chance to comment on the level of service that they wish to have, while recognising what costs come with it. This will take a few weeks to produce, but will certainly take place before the conclusion to the licensing process currently underway.
