The Knesset’s Economics Committee, chaired by MK Michael Bitton, today (Tuesday) continued its preparation for second and third reading of 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, Packages from abroad and expand the supervisory and enforcement powers of the Ministry of Communications and the Minister. At today’s hearing, the committee approved the clause that would allow the opening of the individual mail competition (the individual letters). However, in other sections, which dealt with the postal company’s ownership of printing houses and the possibility that the company would provide additional services, a dispute arose and no votes were taken. However, Chairman Bitton reiterated that the committee will ensure that consumer service is not harmed and even improved, and called for agreements to be reached on the treatment of quantitative mail.
The Deputy Director of the Postal Administration at the Ministry of Communications, Oren Lavian, explained that the Rosen Committee recommended expanding competition in the field of individual letters, and the ministry seeks to allow full competition so that the field is not exclusive to the postal company. .
A storm arose around the section, when a number of Knesset members claimed that it was a matter of privatizing the distribution of mail. MK Gabi Lasky said that she is in favor of a monopoly of a universal postal service and it is not clear to her how this move will be made before deciding on the future of the postal company. MK Yael Ron Ben Moshe added that MKs do not receive answers about privatization, and only read About that in the newspapers.
MK Nira Shefek said that Knesset members have not yet received answers to the question of the usefulness of the reform. MK Yaakov Margi said that the Ministry of Communications should do internal work and return to the committee with perfect privatization, and then there will be no misunderstandings. MK Ram Shefa added that no question asked in the previous debate was answered, so it is not clear why the vote begins. MK Shefa insisted that no answers were received and Chairman Bitton asked to remove him from the discussion.
The chairman of Messer, Avshalom Haran, said that there are still 100 million individual mail items a year, and opening the market when all collection and distribution infrastructure is controlled by the Israel Postal Company will not lead to competition.
The director general of the Ministry of Communications, Liran Avishar Ben Horin, replied that the government decided back in 2014 to privatize the postal company and this has not yet happened, so the said section came to regulate the situation and improve customer service regardless of the privatization question, adding: We will pay the price. “The representative of the Ministry of Finance, Sapir Ifergan, added that even if privatization, these changes will not be necessary.
As stated, at the end of the heated discussion in the section the committee approved it. MK Shefa asked for a re-discussion, but later withdrew, but again wanted to know what the goals of the reform were.
The committee then discussed a section designed to allow the postal company to enter other areas of activity, provided it notifies the Minister of Communications two business days in advance. Avishar Ben Horin explained: “If the post office wants to put alcohol on its shelves during the Corona period today, it needs the minister’s prior approval.”
MK Zvi Hauser warned of a situation in which the post office would use its branches and turn them into malls or law firms, and Ministry of Communications officials explained that if the minister saw a breach of the postal service he could act and monitor. MK Hauser insisted Fox, for example, will be able to operate in post offices. Israel Post CEO Danny Goldstein responded in the affirmative. Hauser warned of a situation in which the postal services “will be provided between two and four,” and Avishar Ben Horin replied: “This can not happen.” MK Limor Magen Telem asked if it would not cause a long queue More, and Lavian replied, “If that happens we will intervene.” MK Lasky said the section prepares the ground for privatization and turning branches into malls.
Dan Carmeli, VP of Law and Regulation at the Israel Postal Service, responded to the allegations, saying that the post office loses NIS 200 million a year and if the clause is not passed, it will reach insolvency. As for the level of service, Carmeli said
Chairman Bitton summed up the discussion in this section and requested a new wording, which would allow the postal company to enter additional areas only after notification to the Minister delivered 14 days earlier, when the Minister has the authority to approve or reject the activity, or approve conditions provided it does not harm Also, if the Minister sees in the future that this harms the service he will be able to revoke the permit.
The committee also began to deal with a section designed to allow the Israel Postal Company to partially own a printing house, in order to provide quantitative postal services. Here, too, a controversy arose in previous discussions, when printing companies sought access to postal distribution centers. Chairman Bitton asked the Ministry of Communications to think of an agreed solution, which would allow the post office to enter the world of printing in a certain period of time, to allow the printing presses to prepare, and at the same time the Israel Post will open its distribution centers.
As stated, the sections dealing with the permit to provide additional services to the postal company and the printing section were not voted on, and the discussion on them will continue in the coming weeks.
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