Knesset Economics Committee, chaired by Ha"As Michael Bitton, today continued to prepare for the second and third reading the proposal to amend the Postal Law. The amendment is mainly intended to implement the recommendations of the Rosen Committee, which recommended, among other things, to open up the postal sector to competition, to carry out a reform in the foreign packaging industry."To and expand the supervisory and enforcement powers of the Ministry of Communications and the Minister. During today’s hearing, representatives of private companies criticized the bill, and in response promised a CEO"The Ministry of Communications said that in the next two weeks the government is expected to make courageous decisions regarding the post office. there were"R. Bitton said that he would not allow harm to the service to the citizen and canceled that he would not allow harm to the periphery. He also demanded that the Ministry of Communications present data on the improvement in service to citizens as a result of the reform.
US"Messar’s company chairman, Avshalom Haran, said that in accordance with the recommendations of two public committees, the distribution centers for all companies should be opened, and price controls should be gradually removed. He warned of damage to the service and raising tariffs in the periphery at the expense of the center, and asked if the commission would be prepared for that. there were"R. Bitton said in response that he did not intend to allow a situation of harm to the periphery in favor of the center.
Harn added that the postal company still has a monopoly and blocks competition for the parallel distribution of mailboxes, and the intention is to turn it into a private monopoly. "If the offer is accepted as proposed by the Ministry of Communications, there will be no competition in the market and we will not be able to compete with the postal company’s monopoly.", said.
The CEO also joined in"To Barry Printing, Ben Sukman, who called the proposal approx"Postal company bill" And said it would eliminate future competition. According to him, "Instead of worrying about the development of the postal market, the communications and finance ministries maintain the monopoly and try to maximize the value of the postal company in preparation for an IPO. Protecting the monopoly will lead to harm to the citizen, the service will be harmed and the price will go up"Said Sukman.
Representatives of the other printing companies said similar things. CEO"To Ania, Nathan Shapira, said that the entry of the printing company for printing would eliminate the printing houses. Because, according to him, these are a few large individual customers, and it is enough for the post office to take two or three customers to bring about the closure of the company. VP"To Agan Industries, Nimrod Engel, added that there would be cannibalization and the small companies would close. The director of the printing and paper industries at the Manufacturers’ Association, Efrat Haim, said that the entry of the postal company into the printing field would not only not increase competition, but would be a targeted elimination of quantitative printing.
CEO"To the Israel Postal Company, Danny Goldstein, responded to the allegations and said that Messer makes a distribution in all economic areas, and where it is not economic it transfers to Israel Post. As for the ability of the post office to perform pricing, Goldstein said that the company has orderly pricing and it has even done an orderly job with KPMG.
CEO"The Ministry of Communications, Liran Avishar Ben Horin, also responded, saying that the printing section is unsupervised and is fading regardless of the reform. She explained that this is not about the post office becoming a player in the printing market, but as a buyer of printing services and their marketer as one package like the other players. According to her, the intention is to allow him to hold up to 5 percent in a printing company.
As for the claim of harming the periphery and raising the price, the CEO said"Lith Avishar Ben Horin, because this is the price of the quantitative mail, which the big business owners pay, and not the price to the private consumer. She even added that the firm tried to get the data on the prices paid by the printing companies and did not get and had to go to court.
Ha"K. McLean said that the postal company also tells us about its difficulties, and so do the printing companies and they are right, but in this contradiction it cannot be that everyone is right. there were"Rabbi Bitton addressed this and in response asked the Knesset’s Research and Information Center to prepare a document for the committee that would analyze market activity. Ha"Kerem Shefa said that it was not clear what the consequences of the reform would be for the public, and he also referred to this"R. Bitton and asked for indicators of the impact on the public service.
CEO"The Ministry of Communications, Avishar Ben Horin, asked for comment and said that the mail is a basic product and is still a market, like the Internet, and it is better for it to be run as a market than for the government to try to run it. However she added: "In the next two weeks, the government will make difficult and painful decisions regarding the mail that you will hear about, the government must make brave decisions.".
there were"R. Bitton summed up the discussion and said that the committee expects the Ministry of Communications to bridge the gaps between the various bodies, and to bring in legislation that benefits the consumer first and foremost. He requested in writing data on improving measurable service to the public as a result of the legislation, adding: "Is the premise that the post office can sustain itself only from self-income in the world that the use of letters diminishes valid? We did not get a good answer. If the government wants to privatize it will have to put its hand in its pocket and invest hundreds of millions because these are workers, the question is whether instead the government can invest several tens of millions and maintain the financial stability of the post office".