The Knesset’s Economics Committee, headed by MK Michael Bitton, today continued to prepare for 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, 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, in response to which the director general of the Ministry of Communications promised that in the next two weeks the government is expected to make courageous decisions regarding the mail. He also demanded that the Ministry of Communications present data on the improvement in service to citizens as a result of the reform.
The chairman of Messer, Avshalom Haran, said that in accordance with the recommendations of two public committees, the distribution centers should be opened to all companies, and that price controls should be gradually removed. Chairman 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 the Ministry of Communications offers it there will be no competition in the market and we will not be able to compete with the postal company’s monopoly,” he said.
Barry Printing CEO Ben Sukman also joined in, calling the proposal a “postal company bill” and saying it would eliminate future competition. Post in preparation for the 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. Aniya’s CEO, Natan Shapira, said that the entry of the printing company for printing would eliminate the printing houses. 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.
Israel Post CEO Danny Goldstein responded to the allegations, saying that Messer makes distribution in all economic areas, and where it is not economical it transfers to Israel Post. KPMG Company.
The director general of the Ministry of Communications, Liran Avishar Ben Horin, also reacted, saying that the printing section is unsupervised and is declining regardless of the reform. She explained that this is not about the post office becoming a player in the printing market, The others, she said, are intended to allow him to own up to 5 percent of a printing company.
Regarding the claim of harming the periphery and raising the price, CEO Avishar Ben Horin said that it was the price of quantitative mail, paid by large business owners, and not the price to the private consumer. to court.
MK Maklev 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 not everyone can be right. Market activity. MK Ram Shefa said that it was not clear what the implications of the reform would be for the public, and Chairman Bitton also referred to this and asked for indicators of the impact on the public service.
The director general of the Ministry of Communications, Avishar Ben Horin, asked to 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. The post you will hear about, the government needs to make brave decisions. “
Chairman 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 legislation that benefits first and foremost with the consumer. Itself only from self-income in the world that the use of letters is less 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.”
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