Opinion of the Committee of the Regions on the "Proposal for a European Parliament and Council Directive amending Directive 97/67/EC with regard to the further opening to competition of Community postal services"

(2001/C 144/07)

THE COMMITTEE OF THE REGIONS,

having regard to proposal for a European Parliament and Council Directive amending Directive 97/67/EC with regard to the further opening to competition of Community postal services [COM(2000) 319 final - 2000/0139 (COD)];

having regard to the decision of the Council on 25 September 2000, under the first paragraph of Article 265 of the Treaty establishing the European Community, to consult it on this matter;

having regard to the decision taken by its Bureau on 13 June 2000, to draw up an opinion on this matter and to instruct Commission 6 for Employment, Economic Policy, Single Market, Industry and SMEs to undertake the preparatory work;

having regard to its opinion on Communication from the Commission on the set of measures proposed for the development of community postal services a and a Proposal for a European Parliament and Council Directive on common rules for the development of Community postal services and the improvement of quality of service (CdR 422/95 fin)(1);

having regard to The decision of its President of 26 October 2000 to appoint Mr Martin as rapporteur general to draw up an opinion on this subject, in accordance with rule 40.2 of the Rules of Procedure of the Committee of the Regions;

having regard to the draft opinion (CdR 309/2000 rev. 1), drawn up by the general rapporteur Mr Martin UK, PES,

adopted the following opinion at its 36th plenary session, held on 13 and 14 December 2000 (meeting of 13 December).

1. The Committee's views on the proposals

1.1. The Committee supports and is committed to the completion of the single European market, which includes a process of liberalisation of the postal services within the European Union, reconciling the furtherance of the gradual, controlled liberalisation of the postal market and that of a durable guarantee of the provision of the universal service.

1.2. While the Committee notes the decision of the March 1999 Council, it also wishes to stress the key role played by the postal services in the social and territorial cohesion of the European Union.

1.3. The Committee wishes to underline that the postal services offer a unique communications infrastructure with a high economic and social importance and impact to all EU citizens.

1.4. In particular, the Committee is of the opinion that a high quality, modern and technologically advanced universal postal service is a prerequisite to the full implementation of the single market and future economic growth and social inclusion. In particular, citizens and small businesses in remote and excluded urban areas rely on the universal service providers to deliver letters, goods and services.

1.5. The Committee also accepts that many postal services are making strategic alliances across national boundaries with others embarking on acquisitions to ensure a greater degree of control of the distribution networks.

1.6. The Committee agrees that the impact of globalisation, market demands for a high quality service and technological advances means that the postal services are facing rapid change within their industry.

1.7. The Committee accepts that EU postal services already operate in an increasingly open and competitive market place, which is characterised by rapid technological change, predominantly because of the fast growing use of Internet, the fax and other technological advances.

1.8. The Committee recognises that some member states have already gone further than the 1997 directive and have liberalised larger segments of the postal services beyond the currently defined reserved area of 350 grammes and 5 times the standard tariff.

1.9. In particular, the Committee is keen to emphasise the employment role of the postal services, which account for approx. 1,7 million people, of whom about 1,3 m are employed by the universal service providers. Many of these jobs are in remote rural and excluded urban areas. The employment impact on local and regional economies must be taken into account in any further liberalisations.

1.10. The Committee notes that the 1997 Directive has already produced improvements in the quality of service of cross-border mail flows because its principles allow for good relationships between Universal Service Obligation providers.

1.11. The Committee wishes to stress that the universal postal service obligation gives the postal services a distinctiveness, which is not enjoyed by any other economic sector in that it provides direct access points for individual consumers, both individual and businesses, to reliable communication services as well as to government services, banking and other commercial facilities in many Union countries. Such services are of particular relevance to excluded communities, both in urban and rural areas.

1.12. The Committee accepts that the universal service providers face a unique set of challenges from further liberalisation because of existing investments in the postal services networks, much of which is fixed (post offices, transport infrastructure, staff, etc.) and from the exponential growth of new technological based solutions to communications for both businesses and individuals (e-commerce, internet, fax, broadcasting, etc.).

1.13. The Committee recognises that this increased use of Internet based services could lead to a further decline in the traditional letter based postal services, the mainstay of the reserved services, and that excluded groups are less likely to have access to these Internet-based services.

1.14. The Committee accepts that changes over the next decade will be driven by technological advances and will increase pressures to develop and deliver increasingly tailored and customised solutions to different groups of customers by the postal services, whether through a universal provider or through specialist postal services deliverers.

1.15. It is the view of the Committee that this will lead to a restructuring in the employment within the sector, with a potential shift from the universal service providers to new entrants. The Committee is of the view that such shifts should not be at the expense of the quality of employment for EU citizens. Indeed, human resource development and support may have to be intensified within the sector.

1.16. On the other hand, the Committee is also of the opinion that such technological change opens up new possibilities for the development of new products such as encryption services secure transmission via the Internet and products tailored to the needs of individual customers, which will benefit both the incumbent universal services provider as well as new entrants into the market place, both in terms of income generation and employment opportunities.

2. The Committee's recommendations regarding the proposals

2.1. The Committee of the Regions agrees with the principles aimed at reconciling the furtherance of a gradual and controlled liberalisation of the postal services with a durable guarantee of the provision of the universal service, as this is likely to lead to a better quality of service for the consumer, both individual and businesses.

2.2. The Committee recommends that more emphasis must be given to the distribution of potential job losses, particularly in remote rural and excluded urban communities, where the postal services provide a significant avenue for employment opportunities. Shifts in employment will have significant impacts on local and regional economies and these must be taken into account in any further liberalisations.

2.3. The Committee of the Regions thinks that the possibility should be considered of using the post-office infrastructure in rural areas as a means of bringing public and other services to regions with a weak communications infrastructure. Post offices could function as a nodal point between peripheral and central areas, preserving and promoting employment and helping to maintain population levels.

2.4. The Committee wonders about the impact on employment forecast by the Commission, and therefore requests that member states provide regular employment data to the Commission. This would be in line with the new focus on employment within the Treaty of Amsterdam.

2.5. In the view of the new strategic goal for the Union to create more and better jobs, the Committee recommends that special attention be given to monitoring the quality of employment across the postal sector as a whole to ensure that further liberalisation does not lead to deterioration of working conditions of EU citizens working within the postal services.

2.6. The Committee therefore requests the member states and the Commission to ensure that this aspect is a central consideration to proposals on liberalisation. This work must include an assessment of further human resource development needs to secure high quality employment opportunities for EU citizens.

2.7. The Committee also requests that members states with the Commission examine possibilities arising from new technologies and the existence of an extensive network of post offices across the Union to develop the network further in terms of access to governmental services, including voting in direct elections, education, training and job opportunities, etc.

2.8. Given the unique position and role of the universal postal service in relation to the achievement of the Single European Market, the Committee requests that a further report into the state of the market be carried out after 2003, once the Directive has been implemented, and prior to any further proposals for liberalisation. This should include an assessment as to whether full liberalisation is achievable and indeed desirable in view of the desire aim of maintaining the universal service obligation.

2.9. The Committee welcomes the continuation of the universal service obligation (defined as a minimum of 1 daily, inexpensive, reliable and high-quality collection and delivery to every address, in any location) and requests that this be maintained as a central, basic requirement to be placed on all universal service providers.

2.10. It is the view of the Committee that such a guarantee is essential if consumer confidence is to be maintained and the conclusion of the single market is achieved. The Committee is also of the view that this definition will ensure adequate access for individuals and small enterprises in rural and excluded urban communities in particular.

2.11. New definitions regarding traditional services and special services have been introduced. According to the Commission's proposal, special services outside the universal service are to be liberalized whatever the price limit. The Committee considers that the definition of special services needs to be tightened, so that the economic content of the universal service is protected. Indeed, the proposed definition is so broad that any competitor defining its services as "special" could easily circumvent the reserved area, thus jeopardising the financial viability of all universal service providers.

2.12. The Committee regrets the introduction of the new concept of special services without any analysis as this puts into question the principle of adaptability of the universal service, as provided for by article 5 of the 1997 Directive. The deletion of the reference to price for those services would be a matter of serious legal uncertainty for the sector and would impact on the economic viability of the Universal Service Obligation providers.

2.13. The proposal from the Commission argues for a reduction from 350 grammes or 5 times the normal tariff to 50 grammes and 2,5 times the tariff. It is the view of the Committee that this could potentially undermine the ability of the universal service provider to deliver on this obligation. The 1997 Directive foresaw a controlled and gradual liberalisation and the Committee is therefore of the view that the step change should be to 150 grammes, not 50 grammes.

2.14. The Committee considers this area of extreme importance to the local and regional authorities and therefore requests to be kept up to date with further developments.

Brussels, 13 December 2000.

The President

of the Committee of the Regions

Jos Chabert

(1) OJ C 337, 11.11.1996, p. 28.