P.140/2010 Jersey Post: Petition

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A decision made 28 October 2010 regarding: P.140/2010 Jersey Post: Petition - Comments.

Decision Reference: MD-TR-2010-0156
Decision Summary Title:	Comments P140 Jersey Post petition		Date of Decision Summary:	27 October 2010
Decision Summary Author:	Deputy Treasurer		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Comments P140 Jersey Post petition		Date of Written Report:	27 October 2010
Written Report Author:	Deputy Treasurer		Written Report : Public or Exempt?	Public
Subject: Jersey Post: Petition (P.140/2010) - comments
Decision(s): The Minister decided to present the attached comment on P.140.2010 to the States for their information.
Reason(s) for Decision: To enable the presentation of the Minister’s comment to the States.
Resource Implications: There are no resource implications.
Action required: The Greffier of the States is requested to arrange for the attached comment to be presented to the States at the earliest possible opportunity.
Signature:		Position: Senator P F C Ozouf Minister for Treasury and Resources
Date Signed:		Date of Decision:

P.140/2010 Jersey Post: Petition - Comments

P140/2010 Jersey Post Petition

Comments

Part a of the proposition requests the Minister for Treasury and Resources, as representative of the shareholder, to request Jersey Post not to take any steps to cut deliveries back to 3 days a week.

The setting of the USO is a matter for the Minister for Economic Development. The Minister retains strategic political responsibility for Jersey’s postal services industry, with the Jersey Competition Regulatory Authority (JCRA) having responsibility as the independent licensing and regulatory authority for postal services. In these respective roles, both the Minister and JCRA have a primary duty to ensure that as far as reasonably practicable, postal services are provided in Jersey and between Jersey and the rest of the world, as satisfies all current and prospective demands for them.

The Minister has recently concluded a public consultation about the provision of the Universal Service Obligation (USO) in postal services. As the representative of the shareholder I expect the board of Jersey Post to ensure the company meets the USO in an efficient and effective manner. The shareholder is not responsible for defining the USO.

Part c of the proposition asks the States to ‘agree that the States should assist Jersey Post to maintain its Universal Service Obligation by contributing to any shortfall in funding in the event of competition being allowed in the postal market.’

The budget forecasts recently presented to members show the projected financial deficit in our public finances over the coming years. The pressures facing our public finances are significant and members are aware of the revenue raising and cost cutting decisions that must be taken in order to return to a sustainable financial position. Providing a taxpayer funded subsidy to Jersey Post would add to the level of deficit and require the raising of further taxes or additional reductions in core public services.

Jersey Post must also operate in a financially sustainable manner and it is working positively to do so. It must work to meet its customers’ needs and provide effective postal services within the context of an appropriate, affordable and sustainable USO, set and overseen by the Minister for Economic Development and the JCRA.