Issued by: Ministry for Post, Telecommunication and Broadcasting
14 May 1998
The White Paper on Postal Policy was released in Cape Town on Thursday by Jay Naidoo, Minister for Posts, Telecommunications and Broadcasting.
Postal services are a basic link serving the entire population. It also serves as an important medium of communication for business and commerce. Access to basic postal services is the right of all citizens.
"The policies of the past resulted in huge disparities benefiting a single population group. The redress of these imbalances is essential to the social and economic development of all communities, especially the previously disadvantaged groups, and this is what this White Paper seeks to do," he said.
"In particular, the policy framework suggests that the Post Office must ensure greater access to postal services by re-balancing the postal network for equity. In addition about 4 million new addresses must be rolled out over the next few years."
"The White Paper creates a framework for the south African Post Office to become a world class operator in a market which is becoming increasingly competitive," Naidoo said.
The White Paper proposes a reduction in the size of the monopoly of the South African Post Office. At present the monopoly apply to all letters up to 2 kilograms and it is proposed to reduce this to 1 kilogram. At the same time the Post Office will be licensed and will have to provide a universal postal service.
"It is government's belief that the growth of competition in the sector is healthy for the development of the sector, the economy and the public. Competition will therefore be encouraged by government, subject to the requirements for the achievement of universal service provision and related regulation," Naidoo said.
A postal regulator will be established in the Ministry with the main aim of achieving universal service and to make regulations for the sector. The regulator will monitor and protect the exclusive rights of the Post Office with respect to the reserved services. The regulator will also ensure that the Post Office does not abuse its monopoly position in the market and with respect to its customers.
The White Paper proposes that tariff increases be regulated through a price-cap methodology, which link tariff increases to the rate of inflation.
The Post Office has been given a financial mandate to reach break-even point within three years.
"We will consider a Strategic Management Partnership between the Post Office and an international postal administration," Naidoo said. "As far as the subsidiaries are concerned, we will allow the Post Office to enter into partnership with the private sector."
Corporate governance will be brought in line with the recommendations of the King Report and the Post Office will be managed by a single Board, comprising executive and non-executive directors. Anthe day-to-day operations within specific parameters of authority.
The White Paper makes extensive recommendations to the Post Office to promote the economic empowerment of historically disadvantaged communities.
It also calls for a comprehensive human resource plan and strategy to be drawn up by the Post Office with clear targeaining.
On the international front the White Paper proposes that South Africa join the Pan African Postal Union, a specialised agency of the OAU. "In line with our foreign policy on the African Renaissance we envisage to play a much more active role in SADC and on the continent to promote the development of postal services on the continent," Naidoo said.