I INTRODUCTION

II INFORMATION SHEETS PER COUNTRY

III APPENDICES

1.List of postal legislation available in French or in English

2.Table on the status of the postal services in the CERP member countries

3.Informations concerning the delivery of mail

4.Postal network in the CERP member countries (Statistical informations)

I. INTRODUCTION

The aim of this compendium is to provide a panorama of the different regulatory frameworks governing the postal sector in the CERP countries. It is the fruit of a survey undertaken by the CERP "Regulatory Issues" Working Group, chaired by France.

. BACKGROUND

During its first meeting in Paris on 17 January 1995, the CERP "Regulatory Issues" Working Group set out its mandate and identified its prime objective: "to build up a methodology for the gathering and use of available information on postal market structures and postal regulation within CERP countries, possibly involving the creation of a database".

The working group highlighted the need to clearly define the type of information sought after by the group, before beginning to assemble data, particularly with regard to the regulatory frameworks in the postal sector. This task was entrusted to a project team comprising the Netherlands, the United Kingdom and France.

. METHOD

As the concept "European postal sector" has not yet been clearly defined, the project team decided that it would first endeavour to collate information on how the different member countries of the CERP organise their postal services, from a regulatory viewpoint. It would then compile this information in a compendium.

A questionnaire was sent out for this purpose to the CERP member countries on 26 July 1995. In order to enable the project team to obtain as many contributions as possible, the initial deadline for responses, set at 20 September 1995, was extended to April 1996 and all responses received up to June 1996 were processed.

From the responses obtained, and from further information requested directly from the countries concerned, the project team was able to draw up information sheets on each country and to compile tables; these constitue the bulk of this compendium. The information sheets per country were sent out to the countries concerned in April and May 1996 for validation. Initially we had planned to supply the organisation charts and legislative texts available in French and/or English in an annex to this document. However, due to the poor quality of some of the photocopied material and the sheer quantity of texts which necessitated recopying, the project team had insufficient physical resources to do this. We thus decided to provide a list of the legislation available and suggest that those countries interested in obtaining a copy of any of the legislation listed should contact the relevant authorities directly.

. SUMMARY OF THE MAIN RESULTS

32 of the forty countries questioned (including Liechtenstein) had responded by 18 June 1996, which constitutes a satisfactory 80% return rate.

3.1 Regulatory and legislative framework (See annex 1: list of postal legislation available in French or English).

Once assembled the responses showed that although there are differences between the various regulatory frameworks currently in place, there are also common trends. The development of competition, studies undertaken at European Union level and various other factors have caused widespread repercussions, leading several countries to begin reorganising their postal services and to update or even fundamentally revise their often-outdated postal legislation. These trends are continuing (cf. for example, the new postal laws drafted in Germany, Bulgaria, Norway, Slovakia and the revision of the regulatory framework planned in Spain). Changes will also occur as the European Union countries transpose the upcoming directives on the postal sector into national law.

3.2 Regulatory authority (See annex 2: Table showing the status of the postal services in the CERP countries)

Almost all countries, with the exception of four (Cyprus, Iceland, Switzerland and Turkey) have separated their regulatory and operating functions. Three of these remaining countries are planning reforms. New postal legislation is envisaged to separate regulatory and operational functions in Iceland and in Switzerland. Cyprus is planning to reform its Department of Postal Services in the long term, in order to bring its organisation into line with the decisions and recommendations of the UPU and with European Union legislation.

Regulatory activities are generally performed by a ministerial department in charge of postal services. In a few rare cases, an independent supervisory authority has been set up (Belgium, Denmark, Finland, Hungary, Portugal, the United Kingdom, Sweden). The Netherlands also plans to institute such changes.

3.3 Universal service operator

* Status (See annex 2: Table on the status of postal services in the CERP countries)

In the majority of countries, operational functions have been entrusted to a postal corporation which enjoys administrative and financial autonomy, but remains 100% state-owned, with the exception of the Netherlands where the State has only a 45% stake in the share capital of KPN, the holding company of which PTT Post BV is a subsidiary. Very few postal services are still managed directly by a central state administration. Most have been transformed into state corporations, pulic companies and limited companies, giving them a certain degree of management flexibility which they need in the increasingly competitive environment.

Moreover, several of the planned reforms envisage changing the status of the public postal operator: Slovakia and Estonia plan to transform the currently state-owned corporation into a joint stock company; in Switzerland the federal posts and telecommunications Bill currently before Parliament will transform the Swiss post office into an independent public corporation; by the end of the year the Italian public postal corporation, Ente Poste Italiane (EPI) should enjoy a private company status. It will nevertheless remain under state ownership.

* Universal service obligations

Although universal service obligations vary from one country to another, there are a number of kinds of services which are required in all countries, such as: the collection, transport and distribution throughout the territory of addressed items (letters and parcels), with variable weight limits. Several public postal operatCrs are also required to provide basic financial services (money orders and Giro service) and/or to transport and distribute newspapers and magazines. In Switzerland the postal service is also obliged to transport travellers, luggage and goods parcels as part of the travellers' postal service.

In the majority of countries, delivery is assured 6 days a week, sometimes with certain limits (urban areas only, priority mail, express mail) - See annex 3.

As concerns tariff policy, in general a distinction is drawn between the tariffs for basic services/ reserved services/ obligatory services, the scope of which varies from one country to another and which are subject to approval by the competent regulatory authorities (Posts and Telecommunications Ministry, Finance Ministry...), and tariffs for services open to competition, which are set freely by the governing body of the post office, according to commercial principles.

Tariff increases are sometimes regulated within a price cap system (ie. in the Netherlands, Denmark, Poland) or by a more general agreement between the post office and the supervisory authorities (for instance, the management contract in Belgium, contractual plan in France, convention in Portugal, agreement between Sweden Post and the Swedish government which also sets a price cap).

Generally tariffs are set according to economic criteria (cost recovery, profitability, reasonable profits), unless the Government has decided to keep prices low for social reasons (eg. the Republic of Moldova or Slovakia). Slovakia is currently studying the possibility of a reform of the pricing system which would deregulate the tariffs of postal services, with the exception of tariffs for letters.

Finland Post Ltd is the only operator which is completely free to change its tariffs, on condition that it informs its customers at least one month before the new tariffs enter into force.

Although all universal service operators are not legally bound to publish their tariffs, all operators make the basic services tariffs available to the public, in general by displaying them in post offices.

Others are required to publish their tariffs in an official document (ie. the Moniteur Belge in Belgium or the Order on the postal service law in Switzerland) within a given deadline before the entry into force of the new tariffs. This deadline ranges from one day in the United Kingdom to two months in Germany (for the universal service).

As a rule, geographic price averaging (péréquation tarifaire) is applied at least for basic services, although the application of this principle is not always legally binding. In Sweden it applies only to single (or a few) letters and to single (or a few) parcels from individuals. In Spain, it does not apply to letters and post cards but it applies to telegrams, money orders, postal parcels, "Blue parcels", books, literature for the blind and newspapers.

In most countries, the price discounts accorded for certain categories of mail (with the exception of literature for the blind, audio books and for the discounts for the transport and distribution of newspapers and books) are not governed by legal and regulatory obligations but by commercial considerations (discounts for bulk mail, often in return for preparation of mail). Some countries take into account humanitarian considerations (eg. Croatia) or social considerations, such as the Republic of Moldova which accords reductions for the mailing of money orders for old age pensions and other allowances.

Few countries have established procedures for the consultation of users/customers. The exceptions are the consultative bodies set up by the regulatory authorities in Belgium, Finland and France (local consultation procedures) or by the postal operator (in the Netherlands and Switzerland). In the United Kingdom, users interests are defended by the POUNC (Post Office Users National Council), a public body established by the 1969 Post Office Act and funded by the DTI. In Spain user consultation is obligatory when a new law is in preparation. Most postal corporations do not have specific obligations in this field, but have close relations with their customers which are governed in principle by commercial concerns, in particular when new products or services are launched or during specific events (Customers' day in the Republic of Moldova; Open day for the international letter week in Lithuania. Some of these (Estonia, Sweden) stated that they also conduct studies on customer satisfaction, with the aim of improving their service.

Postal operators generally do not have any specific obligations with regard to dispute settlement either. Most often disputes are settled by the operator (post office or higher body). In the event of a disagreement on the application and interpretation of general sales conditions, KPN is obliged to set up a disputes board for individuals and small companies. Generally there is an appeals procedure in place under the aegis of the regulatory authority (Denmark, Estonia, Finland, the United Kingdom, Russia...). In the event of failure of all other means of appeal, disputes may be brought before the competent courts (administrative courts, civil courts, commercial courts, Chartered Institute of Arbitors in the United Kingdom...). Finally, two countries (Belgium, France) stated that they have put in place a conciliation procedure.

The quantity of information that the operator is required to provide the Government or the regulatory authority is variable and is not always governed by legal or regulatory provisions, except in the countries where relations between the postal operator and the regulatory authority

have been set out by a contractual document (Belgium, France, Italy, Republic of Moldova, Portugal, Sweden...). Generally, this concerns information on the financial and economic situation of the postal company, especially with regard to reserved and obligatory services (annual accounts, profit and loss accounts, annual report, pricing information, quality of service data, statistical information...) and on the operator's intended strategy (5 year action plan etc.).

Transfer of a part of the turnover/profit to the Government: transfers exist in several forms such as the payment of dividends to the state shareholder (Denmark, Portugal...), corporate tax, the taxation of a part of the profits payable to the Treasury (Luxembourg), payment of VAT to the state (Republic of Moldova), payment of revenue from posts and telecommunications activities to the Federal Treasury (Switzerland), etc.

Financial objectives/ obligations: considering the changes in the status of postal operators, most are now required to break even or to make a profit. They are also obliged to adopt corporate management rules (profitability, cost reduction, etc.).

Among the other obligations mentioned were the transport and distribution of newspapers which is an obligatory service in France, the guarantee of the secrecy of correspondence (i.e. in Portugal, in the Netherlands, etc.) and social obligations such as the distribution of equipment for the blind and actions for the disabled in Sweden.

• Exclusive rights: Although some countries have completely abolished the postal monopoly or reduced it to the issue of postal stamps (Estonia, Finland, Russia, Sweden...) and a licensing system has been put in place to give private operators access to the postal market, the historical postal operators are still in a widely dominant position. Thus in Finland, only one company has applied for a licence to provide postal services in the Helsinki region. The situation is comparable in Sweden aand Estonia. No details were given as to the state of the postal market in Russia. In the other countries, a monopoly is still in force. Generally it applies to a minimum service comprising the collection, transport and distribution of letters, with occasional price limits (United Kingdom), weight limits (Lettonia, the Netherlands, Poland, Slovakia) or weight and price limits (Denmark), which vary from one country to another.
• Special provisions or exemptions: Some countries stated that they did not grant specific exemptions or provisions to their universal service operators (Croatia, Estonia, Finland, Hungary, Sweden). In the other countries, special provisions or exemptions apply essentially to the following:
  • VAT exemption for all or some postal services;
  • tax exemption;
  • the right to install letter boxes on the public highway;
  • customs facilities;
  • facilities accorded to postal vehicles;
  • facilities for the use of port and airports premises, etc.

* Subsidies: Some countries do not grant any subsidies to the universal service operator. In the other countries, we can distinguish three main types of subsidy:

• subsidies intended to cover the operating deficit incurred by the post office (Spain, Poland, Russia...);
• subsidies intended to finance investment (Spain, Hungary, Poland, Slovakia...);
• subsidies and compensation (sometimes in the form of tax exemptions or reductions) to cover the charges incurred on the operator due to its public service missions, for example for the distribution of newspapers or magazines (Belgium, Denmark, Finland, France, Italy, Luxembourg, Portugal, Switzerland,...) for the charges resulting from the maintenance of certain loss-making post offices (Italy, Sweden...), etc.

* Statistics: Annex 4 provides statistics on the postal network in the member countries of the CERP (number of post offices, number of collection points, number of delivery points).

. UPDATING

The relevance and success of this study rely on regular adaptation and updating. France accepted to undertake the publication and distribution of this initial version of the study but will not be able to assure the constant updating of the study alone. Members of the CERP shall have to decide whether this study merits a permanent status and if so, shall have to seek an appropriate means of financing it, perhaps through a joint venture with outside parties, as suggested by the project team at the plenary meeting of the CERP in Helsinki on 18 and 19 June 1996.

In order to improve later versions the project team invites readers to send their remarks and comments to the Secretariat of the CERP at the following address:

Postal directorate

ATT. Mr Cliff Wilkes

Department of Trade and Industry

2.75 Grey

151 Buckingham Palace Road

London

SW1W 9SS

United Kingdom