Following a recent news report "Why privatise our Post Office" featured in this week's Isle of Man Examiner, Isle of Man Post Office would like to clarify that privatisation is not on its agenda. In the January Tynwald, the Chief Minister is on record as saying that wholesale privatisation of services is not on the agenda.
The Board of Isle of Man Post Office have welcomed comments the Chief Minister has made (as recently as the July Tynwald) that the Council of Ministers is examining the corporatisation of the Post Office. The Board is strongly in favour of this, believing that this is the right direction for its future. A business case has been presented to the Council of Ministers in support of this recommendation.
Corporatisation of the Post Office was first recommended in the 2006 Scope and Structure of Government Report and again in the Scope of Government Report in 2012.
If agreed by the Council of Ministers, it would mean changing the Post Office from a Statutory Board of Tynwald to a limited company wholly owned by Government.
Geoff Corkish MBE MLC, Chairman of Isle of Man Post Office said:
"With the recent announcement by the UK Government to privatise Royal Mail, there may be some confusion about what the proposals are for the Post Office on the Island. All of the discussions between the Post Office and Council of Ministers have been about corporatisation not privatisation. The Board and I believe there are many benefits for the Post Office to be corporatised, which will retain the business in Government ownership and we have welcomed the decision by the Council of Ministers to consider this within the first phase of their review of the Scope of Government Report."
He continued:
"There are clear benefits to the Post Office being corporatised. It would provide us with the opportunity to be a standalone business and focus on our commercial activities, particularly those off-Island, while still delivering the high standard of service to our local customers. Corporatisation would allow us to operate more competitively in the open market which in turn, would enable us to continue with our diversification strategy as agreed by Tynwald in 2006."
Mr Corkish added:
"The Department of Economic Development has recently introduced a new Bill to seek minor amendments to the 1993 Post Office Act, updating a 20 year-old Act so that it reflects the modern postal communications market. We anticipate that if corporatisation is approved, further legislation changes, including a new Postal Services Act, would have to be introduced."
An announcement on the Post Office and its future is expected by the end of the year. The decison is part of a review of all Government services to assess its delivery of a wide-range of services which meet the needs of the people it serves and that are sustainable in the long-term.
If the decision to corporatise the Post Office gets the green light, it would not be a first for the Government as it already operates a number of wholly-owned companies including Radio Manx and Laxey Glen Mills.
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