Skip to main content Skip to accessibility
This website is not compatible with your web browser. You should install a newer browser. If you live in Jersey and need help upgrading call the States of Jersey web team on 440099.
Government of Jerseygov.je

Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

P.140/2010 Jersey Post: Petition - Comments by the Minister for Economic Development

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 29 October 2010 regarding: P.140/2010 Jersey Post: Petition - Comments by the Minister for Economic Development.

Decision Reference:  MD-E-2010-0174 

Decision Summary Title :

Comment from the Economic Development Minister on P140/2010: Jersey Post: Petition

Date of Decision Summary:

28 October 2010

Decision Summary Author:

Director of Regulatory Services

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

Comment on P140/2010: Jersey Post: Petition

Date of Written Report:

27 October 2010

Written Report Author:

Director of Regulatory Services

Written Report :

Public or Exempt?

Public

Subject:

P140/2010 - ‘Jersey Post: Petition’ - Comments from the Economic Development Minister.

Decision(s):

The Minister approved the Comment on P140/2010: Jersey Post: Petition.

Reason(s) for Decision:

P140/2010 asks the States to request the Minister for Treasury and Resources to request Jersey Post not to take any steps to cut deliveries back to 3 days a week, to request the Minister for Economic Development to request the JCRA not to allow any competition in the postal market until Jersey Post has undertaken efficiencies and savings, and to agree that the States should assist Jersey Post to maintain its USO by contributing to any shortfall in funding in the event of competition being allowed in the postal market. 

The decision will inform the States of the Minister’s position.

Resource Implications:

There are no resource or manpower implications for the States of Jersey.

Action required:

The Comment to be forwarded to the Greffier of the States for presentation to the States.

Signature: Senator A.J.H.Maclean 

Position: Minister  

Date Signed:

Date of Decision (If different from Date Signed): 

P.140/2010 Jersey Post: Petition - Comments by the Minister for Economic Development

Comments of the Economic Development Minister on P.140/2010 - Jersey Post: Petition  
 

COMMENT  

In respect of part (a) of the proposition- 

The minimum level of service that Jersey Post can provide is a function of the Universal Service Obligation (USO) imposed on the company. 

The Treasury and Resources Minister has indicated that while as the shareholder he expects the board of Jersey Post to ensure the company meets the Universal Service Obligation (USO) in an efficient and effective manner, it is not appropriate for the shareholder to define the USO or place further USO type restrictions on the company. 

The setting of the USO is a matter for the Minister for Economic Development. The Economic Development Department has recently concluded a public consultation about the provision of postal services, in which opinions about a possible future reduction in the number of deliveries were sought (amongst other things). These responses will shortly be published as a States Report for Members’ consideration. 

Once Jersey Post has made the planned efficiency savings which have previously been identified it will be possible to look again at the affordability of the current service and make a decision as to whether the Minister can realistically require Jersey Post to maintain deliveries on six days per week.  

Economic conditions and the steady transition from paper mail to email are affecting postal services globally. While the Minister certainly hopes that a six-day service can be maintained, without public subsidy, (in respect of which the Treasury and Resources Minister has responded) Jersey Post cannot provide a level of service that they cannot afford. 

The possibility of mail being delivered on only three days per week seems to have been taken from the consultation on the USO referenced above. It must be noted that this consultation explored options ranging from five deliveries per fortnight to six per week, in keeping with the current system. Although no decisions can yet be taken, from preliminary consideration of the figures the ‘three deliveries per week’ model does not seem like the most likely outcome of a future USO review. 

In any event, if necessary, a new USO will be defined and presented to the States in due course. 

In respect of part (b) of the proposition- 

There is no legal process by which the Minister can force the JCRA not to allow competition in the postal market.  The JCRA is also under an obligation to follow the process for licensing outlined in the Law.  A Final Notice was issued by the JCRA on 8th October (before P.140 had been lodged) and competition in the postal market will take place on 18th November 2010 for packets, but only on 1st January 2012 for Large Letters.  This is significant as it provides Jersey Post with over a year to deliver the efficiency savings that they need to support the USO.  For this reason it is not necessary to request the JCRA to delay competition as they effectively have already done so. 

In respect of part (c) of the proposition- 

In these challenging economic times it is more important than ever that States expenditure is kept under control.  The recent Business Plan, CSR and budget proposals show the difficult decisions that must be made to ensure sustainable public finances for the Island.   

Jersey Post must also operate in a financially sustainable manner and it is working positively to improve the efficiency and effectiveness of its services.  It must work to meet its customers’ needs and provide affordable and effective postal services within the context of the USO.  Any subsidy provided to Jersey Post would in effect require taxpayer funds to be diverted from another public service. Simply providing a taxpayer subsidy to meet any funding shortfall in Jersey Post is not a sustainable or appropriate solution.

 

Back to top
rating button