Page last updated at 09:37 GMT, Saturday, 10 April 2010 10:37 UK

Call to halt new post competition in Jersey

Post box
Two new postal providers have been given permission to operate in Jersey

A Jersey politician has called for plans to increase postal service providers in the island to be halted.

The Jersey Competition Regulatory Authority (JCRA) has ruled Citipost and Hub can handle large letters in competition to Jersey Post.

A public consultation on the plan runs until the end of the month.

But Deputy Geoff Southern has lodged a proposal saying Jersey Post could be harmed. He has asked for a delay to allow inquiries by politicians.

Under the proposals, Citipost and Hub would be allowed to handle large letters and packets as long as they comply with minimum volume requirements of 50 large letters or 25 packets in any one mailing.

At the moment two companies other than Jersey Post have postal licences in the island - Regency Holdings and Hi Speed Freight Services.

It is the artificial imposition of competition for competition's sake
Deputy Geoff Southern

The JCRA has said there was demand for increased service providers.

Jersey Post has already warned opening the postal industry up to extra competition could lead to job losses.

Deputy Southern said: "The introduction of competition in the only remaining area of postal operations which generates significant profits is a high-risk strategy.

"If profits go elsewhere, it threatens the Universal Service Obligations placed on Jersey Post for daily deliveries. Post offices may close. Further jobs will go.

"It is the artificial imposition of competition for competition's sake which will endanger the existence of a part of our vital infrastructure."

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