Opinion of the Committee of the Regions on:

- the 'Communication from the Commission on the set of measures proposed for the development of Community postal services` and - the '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` (96/C 337/05)

THE COMMITTEE OF THE REGIONS,

Having regard to the 'Communication from the Commission on the set of measures proposed for the development of Community postal services` and the '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` (COM(95) 227 final) ();

Whereas the Council decided on 3 January 1996 to consult the Committee of the Regions in accordance with the provisions of the first indent of Article 198c of the Treaty on European Union;

Whereas the COR decided on 18 July 1995 to refer the subject to Subcommission 3 (Telecommunications);

Whereas the Draft Opinion was adopted by Subcommission 3 on 18 April 1996. The Rapporteur was Mr Frank Nash (CdR 422/95 rev.);

Having regard to the Treaty establishing the European Community and in particular Articles 57(2), 66 and 100a thereof;

Having regard to the Resolution of the European Parliament of 22 January 1993, concerning the Green Paper on the development of the single market for postal services;

Having regard to the Council Resolution of 7 February 1994 on the development of community postal services;

Having regard to the proposal from the Commission and the request of the Council for a COR Opinion on this directive,

adopted the following Opinion at its 13th Plenary Session of 12 and 13 June 1996 (meeting of 13 June).

1. Introduction

In June 1992 the Commission presented a Green Paper on the Development of the Single Market for Postal Services.

The Green Paper analyzed the situation in the postal sector and offered some proposals for achieving the further development of these services in the Community. After widespread discussion by all the interested actors, in June 1993, the Commission presented the results of this debate in a Communication to the European Parliament and the Council on guidelines for the development of Community postal services, in which a number of Community actions were proposed. Finally in July 1995, the Commission published its draft Directive on common rules for the development of Community postal services in which a number of Community actions were proposed. Finally in July 1995, the Commission published its draft Directive on common rules for the development of Community postal services and the improvement of quality of service.

Essentially the Directive covers two areas:

- The establishment of a universal postal service for all persons in the Union.

- Liberalization of certain areas of the postal services.

Allied to the above directive a draft notice was published by the Commission setting out the principles under which the Commission intends to apply the competition rules of the Treaty in the postal sectors.

2. General comments

2.1. The Committee of the Regions welcomes in general the proposals in the Directive as being progressive and timely in helping to develop the Union's postal services and in particular in guaranteeing a universal postal service for all users in the Community.

2.2. Notes that in the Community postal services generate about 1,3 % of GNP and employ about 1,8 million workers of which 1,4 million are employed by public operators and that the postal services in the Community handle 80 billion items of mail per year, of which 3 billion constitute intra-Community cross-border mail.

2.3. While acknowledging the primary need to protect the reserved sector so as to enable it to provide a universal service, recognizes also that the Community law and the competition rules of the Treaty, as recognized by the Court of Justice of the European Communities, apply to the postal sector.

2.4. Therefore, in preparing this Opinion, the COR having consulted widely with officials of the Commission, postal operators in the public and private services and with representatives of trade unions and consumer councils and other interested parties presents the following Opinion and seeks the following amendments to the Directive on the Postal Services.

3. Specific comments

Communication on the set of measures proposed for the development of Community postal services

3.1. The Committee of the Regions notes the introductory remarks to the directive and in particular welcomes the Assessment of the proposed measures in the light of the Principle of Subsidiarity.

Objective of the action envisaged

3.2. The chief aim is the guarantee in the whole Union of a good quality universal postal service at affordable prices and with assured finance. It seeks, in accordance with Article 7A of the Treaty to establish a market without internal frontiers, assuring service and finance and the free movement of goods, services and persons.

Community dimension of the problem

3.3. All citizens of Member States will benefit from the improved efficiency and performance of the postal services.

Up to now harmonization actions by postal administrations have been limited partly because measures taken do not have a binding force and very little progress has been made over recent years, particularly in regard to cross-border services.

Necessity for Community action

3.4. For effective and rapid results Community legislation is essential, especially in the areas of cross-border mail and technical standardization. Uncoordinated action by Member States could hamper proper functioning of the internal postal market. Failure to act would have a significant impact on other economic sectors and it would be prejudicial to social and economic cohesion. Lastly the social role of the postal services especially in remote areas and its role for regional planning are very important.

Actions open to the Community

3.5. It is essential that all Member States participate in the action envisioned. This proposal for a Directive sets out central rules and lays down basic principles constituting a minimum basis of harmonized measures. It is a matter for Member States to transpose these Community provisions into national laws, regulations and administrative provisions and to determine the exact modalities for the system best suited to their own situation.

Preambles and recitals to the Directive

3.6. The Committee of the Regions welcomes the preambles and recitals of the directive but suggests the following amendments.

3.7. That Recital 4 be changed from: 'Whereas the Commission has conducted wide-ranging public consultation on those aspects of the postal services that are of interest to the Community.` to:

'Whereas the Commission has conducted wide-ranging public consultation on those aspects of the postal services that are of interest to the Community and has received the contributions of the interested parties in the postal sector and has noted their views.`

Reason

The postal sector is the most important actor in this directive and its contribution and views should be noted and acknowledged.

3.8. That Recital 6 be changed from: 'Whereas cross-border postal links do not always meet the expectation of users and European citizens, and performance in terms of quality of service with regard to Community cross-border postal services, is at the moment particularly unsatisfactory.` to a new Recital 6 as follows:

'Whereas cross-border postal links need greater efficiency and quality of service.`

Reason

While it is generally agreed that greater efficiency is needed in cross-border postal links, no demonstrable evidence has been produced that this service is particularly unsatisfactory in the majority of Member States' postal services.

3.9. That Recital 17 which deals with direct mail should be altered from its commitment to liberalize direct mail by 31 December 2000 to the following wording:

'Whereas direct mail is a distinct part of the postal services and that separating it from ordinary mail would cause confusion and should in most cases be difficult to locally identify, and because the revenue it raises are necessary for the upkeep of the universal service, it should remain within the reserved sector and that a revision of this sector take place four years after the implementation of the directive.`

Reason

Direct mail constitutes 17 % of the volume and 12 % of the receipts of the public postal operations in the letter service. Liberalizing this sector of the postal services could have devastating effects on the provision of the universal service.

Therefore the Committee of the Regions proposes that its amendment be accepted as one more appropriate to the preservation of a proper universal service, and that the review of this section of the service take place four years after the implementation of the directive, thus allowing proper judgement to be made of the effects of the directive on the postal services, in particular the financial effects.

3.10. That Recital 18 which deals with cross-border mail and which proposes to decide at the latest on 30 June 1998 on the feasibility of postponing the date of liberalization should be replaced by the following wording:

'Whereas cross-border mail which represents on average in the Community 4 % of volume and 3 % of receipts of public postal operators for the letter service, in so far as its contribution to the financial equilibrium of the universal service provider is necessary, whereas the Commission will decide on 31 December 2000 at the latest on the feasibility of postponing the date of liberalization, taking into account the developments, in particular economic, social and technological developments, that have accrued in the sector and taking into account the financial equilibrium of the public service providers.`

Reason

Cross-border mail constitutes on average 4 % volume and 3 % of receipts of the public postal operators; in some countries this figure is much higher. Loss of this revenue to the public service providers during the transition period of the implementation of the directive could have very serious consequences and therefore no review of this area should take place before the year 2000, when the effects of the Directive can be properly analyzed.

The Directive

Chapter 1 - Scope and definitions

3.11. The Committee of the Regions welcomes the scope and definition as defined in Chapter 1 reserving its comments to certain aspects contained in other chapters.

Chapter 2 - Universal service

3.12. The Committee of the Regions, welcomes the proposal to provide a universal postal service within the Community and particularly the provision of a good quality service for all users at affordable prices. It nevertheless calls attention to the fact that postal services activities have an important human dimension which must be taken into account during the implementation of the necessary changes.

3.13. While welcoming the assurance that the density of the points of contact and points where mail is collected, takes account of the needs of users, the COR requests that minimum criteria be laid down for these points of contact and collections particularly in rural areas. And further requests that special support be given to rural post offices.

3.14. Notes that the universal service providers guarantee every working day and not less than five days a week one collection from clearance points and one door-to-door delivery for every person.

3.15. But requests that in major urban areas where it is within the competence of the Member States that collection and delivery be increased to two per day for business users.

3.16. Notes that the universal service will ensure that mail items up to 2 kg and parcel items up to 20 kg are carried as well as registered and insured items as agreed by the Universal Postal Union in 1989, and notes that these measures cover both national and cross-border services.

3.17. However requests that the first line of Article 4 be changed from: 'Each Member State shall appoint one or more postal operators.` to:

'Each Member State, in consultation with the local and regional authorities should appoint one or more postal operators.`

3.18. While agreeing with the sentiments of Article 5, it is requested that the third requirement of the Article be changed as follows from: 'It shall be made available without any form of discrimination arising from political, religious or ideological consideration.` to:

'It shall be made available without any form of discrimination whatsoever, especially without discrimination from political, religious, ideological or regional considerations.`

Furthermore, the COR is concerned that the second requirement of Article 5 does not embrace the concept of a single price tariff within each Member State and requests that a further requirement be inserted as follows:

'It shall offer a single tariff to all postal users regardless of their circumstances.`

3.19. The Committee of the Regions agrees fully with the sentiments expressed in Articles 6 and 7.

Chapter 3 - Harmonization of the services that may be reserved

3.20. Because of the implications that the points made in Article 8 of the Directive, the COR calls on the Commission to reword the Article as follows:

A. To the extent necessary to ensure the maintenance of the universal service, the services which may be reserved to the universal service provider(s) in each Member State are the collection, sorting, transport and delivery of items of correspondence including registered items, direct mail, whose price is less than five times the public tariff for an item of correspondence in the first weight step, provided that they weigh less than 350 grammes, as well as the distribution of incoming and outgoing cross-border mail within the same weight and price limits.

B. Delete paragraph 2 of the Directive.

C. Paragraphs 2 and 3 of the Directive now become a new paragraph 2 as follows:

D. (Paragraph 2) The provisions of paragraph 1 shall be re-examined when the Commission reports to the Council and the European Parliament on the application of this Directive pursuant to Article 23 and no later than the end of the fourth year following the entry into force of this Directive.

E. (Paragraph 3) Member States, upon request of the Commission, shall provide the necessary information for the decision envisaged in paragraph 2.

Reason

The COR feels that it will take four years after the introduction of the directive to examine and observe the effects the directive is having on the universal provider.

3.21. That Article 9 be amended as follows:

'Member States shall appoint the entity on entities that are entitled to place letter boxes on the public highway for the reception of postal items and to issue postage stamps bearing, where appropriate and according to custom, the name of the country, and further that these entities be responsible for the registered letter service.`

Chapter 4 - Conditions governing the provision of non-reserved services and access to the network

3.22. The COR welcomes the provisions contained in Articles 10, 11 and 12 of Chapter 4 but would seek the following amendments.

Article 10.5 to be amended as follows.

From: 'The Member States may provide for an identification system for direct mail, allowing the supervision of such services once they are liberalized.` to:

'The Member States may provide for an identification system for new services once these are liberalized.`

And to further add a paragraph 6 to Article 10 of the Directive as follows:

'The new services could be offered by freely competing providers on the condition that they are distinct and separable from the reserved services, it being the responsibility of the national regulatory authority to judge this difference, notably on the basis of price.`

3.23. The COR further seeks the following addendum to Article 11.1 which deals with the harmonization of authorization procedures.

'And in this latter case, the universal service providers in the incoming country shall receive payment to cover costs and allowing for improvement in quality of cross-border services.`

Reason

To enable the universal service provider in the incoming country to cover the full cost of the delivery service.

Chapter 5 - Tariff principles and transparency of accounts

3.24. With regard to Article 14 of the Directive, which deals with terminal dues, the Committee of the Regions proposes that the Commission text be replaced by one along the following lines:

'European postal carriers shall reimburse one another for the mutual services they provide, on the basis of their respective costs as reflected in their domestic tariffs. The Committee of the Regions asks the European Commission to draw up a regulatory framework for a scheme of this kind.

Before such a scheme is established, European postal carriers shall be authorized to take measures to guard against the remailing practices outlined in Article 25 of the Universal Postal Union treaty, including nonphysical remail.`

3.25. However with regard to paragraphs 15.2 dealing with separate accounts the COR would seek to replace this Article by the following one:

Article 15.2 now to read:

'The universal service providers shall keep separate accounts within their analytical accounting system for the reserved section on the one hand, and for the non-reserved section on the other.`

Reason

Distinguishing between collection, transport, sorting and delivery for separate accounting purposes would be extremely unwieldy and unnecessarily bureaucratic.

Chapter 6 - Quality of Services

3.26. The Committee of the Regions welcomes the overall tenor of the chapter on the quality of services but would propose the following amendments.

That in Article 16 dealing with quality standards the line stating 'These standards shall be laid down by: - The Member States, in the case of national services` be changed to:

'These standards shall be laid down by: - The Member States, in consultation with their local and regional authorities, in the case of national services.`

Reason

In the spirit of subsidiarity and in order to involve local and regional authorities.

3.27. While welcoming the general sentiments of Article 17, the COR proposes that the following changes would be made:

Change from 'Member States shall take steps to ensure that standards are laid down for national mail that are compatible with those laid down by the Commission for the intra-Community cross-border services` to:

'Member States in consultation with their local and regional authorities shall take steps to ensure that standards are laid down for national mail that are compatible with those laid down by the Commission for intra-Community cross-border services.`

3.28. And further to change the second sentence of the Article from: 'However, regard being had to specific national conditions, an initial objective shall be to ensure that in all Member States the items of correspondence of the fastest standard category achieve an end-to-end transit time of one working day from the date of deposit to the date of delivery for at least 80 % of the items dispatched` to:

'However, regard being had to specific national conditions, an initial objective shall be to ensure that during an acceptable adaptation period in all Member States the items of correspondence of the fastest standard category achieve an end-to-end transit time of one working day from the date of deposit to the date of delivery for at least 90 % of the items dispatched and at the very least that standards already existing in Member States shall be maintained.`

Reason

To ensure that a more realistic and competent level of service is reached by the reserved service operator.

3.29. Further in Article 19 which reads 'with users complaints` the COR proposes that the following addendum be added to Paragraph 1:

'Addendum

And that Member States shall ensure that those obligations apply to all public and private operators in the postal services.`

Chapter 7 - Harmonization of technical standards

3.30. The Committee of the Regions welcomes Article 20 on the harmonization of technical standards.

Chapter 8 - The advisory committee

3.31. While welcoming the setting up of the advisory committee under Article 21, the Committee of the Regions requests the following amendment be made to the first sentence of the Article:

That the sentence be changed from: 'The Committee shall be assisted by a Committee of an advisory nature composed of the representatives of the Member States and chaired by the representatives of the Commission` to:

'The Commission shall be assisted by a Committee of an advisory nature composed of the representatives of the Member States and the regions and chaired by the representative of the Commission.`

Chapter 9 - The national regulatory authority

3.32. The Committee of the Regions welcomes the appointment of national regulatory authorities but requests that the first sentence of the Article be altered as follows:

From 'Each Member State shall appoint a national regulatory authority for the postal service that is legally and operationally independent of the postal operators.` to:

'Each Member State shall appoint a national regulatory authority, to include regional and local representatives, for the postal sector that is legally and operationally independent of the postal operators.`

Chapter 10 - Final provisions

3.33. The COR welcomes the final provisions of the Directive but in accordance with its previous amendments seeks the following change to the first sentence of Article 23:

To change from: 'Three years after the date of entry into force of this Directive and at the latest by the first half of the year 2000 the Commission shall submit a report to the European Parliament and the Council on the application of this Directive.` to:

'Four years after the entry into force of this Directive and at the latest by the second half of the year 2001, the Commission shall submit a report to the European Parliament and the Council on the application of this Directive and shall propose how to adapt the universal service and the reserved service on the basis of Treaty Articles 100a and 189b.`

4. Conclusions

While welcoming the overall thrust of the Directive, particularly on the universal service, the Committee of the Regions would make the following points:

4.1. The COR is concerned that the too fast liberalization of the postal service may leave the postal operators of the reserved area with unprofitable enterprises with the resulting negative effects on the universal service.

4.2. The COR is concerned of the effect of these changes particularly in rural and less densely populated areas.

4.3. The COR is further concerned about the effect of employment in the sector. There are 1.4 million people working in the public postal services in the EU most of them in the regions and outside the main centres of populations, i.e. local post offices, etc.

4.4. The COR is disappointed that in the drafting of the Directive so little attention was given to a possible input from the regions, i.e. membership of the advisory committee and the national regulatory authority.

4.5. Finally, while the COR is in favour of the implementation of the liberalization process, it feels that this should be done over a longer period than proposed in the Directive.

Done at Brussels, 13 June 1996.

The Chairman of the Committee of the Regions

Pasqual MARAGALL i MIRA

() OJ No C 322, 2. 12. 1995, p. 22.