1

PRESENTATION TO SELECT COMMITTEE ON PRESENTATION TO SELECT COMMITTEE ON LABOUR, COMMUNICATIONS AND PUBLIC LABOUR, COMMUNICATIONS AND PUBLIC

ENTERPRISE ENTERPRISE

POSTAL SERVICES POSTAL SERVICES AMENDMENT BILL IN AMENDMENT BILL IN

CONTEXTCONTEXT

22 OCTOBER 200322 OCTOBER 2003

2

POLICY DETERMINATION PROCESS POLICY DETERMINATION PROCESS

1997 - Green Paper on Postal Policy published for public discussion

1997 - ’98 Public Consultation

June 1998 – White Paper on Postal Policy published (for general knowledge)

3

POLICY ON EXCLUSIVITY (Reserved area)POLICY ON EXCLUSIVITY (Reserved area)

Post Office granted exclusivity in reserved areas (para. 2.35 @ page 31 of White Paper) and protected

reserved areas (para. 2.46.3 @ p. 33)

Rationale: To compensate SAPO for cost of universal service

NB: Achieved by sufficient mail volumes to spreadfixed costs

Policy in line with international trends

4

INTERNATIONAL COMPARISONSINTERNATIONAL COMPARISONS The UPU does not prescribe universal service for

national governments

In Germany, the Postal Act of 1998 provides for a statutory exclusive licence to Deutsche Post - value-added services not included in statutory exclusivity

UK and France have granted Royal Mail & La Poste exclusivity in respect of items weighing up to 350g

5

POLICY ON NON-RESERVEDPOLICY ON NON-RESERVED

Non-reserved services offered in free competition (para. 2.48 @ p. 33)

2.48.1 Parcel services; 2.48.2 Courier services;

These are dealt with in Schedule 2

6

LEGISLATION – SEC. 16LEGISLATION – SEC. 16

Deals with licensing;

Was intended to capture stated policy;

Provides for SAPO exclusivity – 16 (2) & (8); (See Schedule 1 of the Act)

Sec. 16 (5) contra to stated national policy

7

LEGISLATION cont’dLEGISLATION cont’d (a) - deems couriers licensed to provide Schedule 1 (which is reserved)

Creates confusion in respect of licensing

Licensing relates to reserved services, registrations relate to non-reserved services

Therefore, couriers can only offer Schedule 2 services (be registered)

8

Sec 16 (5) concludedSec 16 (5) concluded

Amendment intended to:-

bring Act in line with stated national policy;

Remove confusion around licensing and registrations;

Clarify exclusivity and role of couriers

9

Courier servicesCourier services

Schedule 2;Provide Sec 16 (5) (d) services, namely:

Collect and receive;Track & trace;Time-based delivery (next-day);Premium-charge;Customs clearance (where applicable)

10

Courier services cont’dCourier services cont’d

Will continue in business

Must align activities with the Act / law

No threat to jobs

No threat to business activity

11

COMPETITION IN SECTORCOMPETITION IN SECTOR

There is competition in non-reserved (Schedule 2) area

Minister will determine time for competition in reserved (Schedule 1) area in terms of section 16 (2)