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Why Denmark’s postal services could undergo major change

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Why Denmark’s postal services could undergo major change
A draft government proposal could change PostNord's delivery obligations. File photo: Mads Claus Rasmussen/Ritzau Scanpix

A draft government proposal could see the Danish state cut ties with the PostNord company and allow increased competition over delivery services in Denmark.

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Danish politicians are currently discussing a potential agreement that could significantly change the face of the postal service in the country, broadcaster DR reports.

The deal could see the state cut its ties to PostNord, the successor of the defunct state postal service Post Danmark, according to the report.

Should the Danish state part with its stake in PostNord, the way would be paved for increased competition over postal services in the country.

Joint-owned by the Danish and Swedish states, PostNord’s Danish arm is obliged to deliver post to all parts of the company. Of all shipping services that operate in Denmark, only PostNord has this obligation. The government itself is obliged to ensure all addresses in the country can receive post.

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The agreement now being discussed could see this obligation revoked, DR reports. That means the market for shipping services would be free in the sense that it would be left to market forces alone to ensure full coverage of post across the country.

Three areas of the post would still be ensured by the government, according to the report. This is post to island communities, air mail and post for blind people. The government would agree contracts with companies to provide these services.

READ ALSO: Summer houses in Denmark: What are the rules and when can you live in them?

On small island communities, a shared infrastructure would consist of  “post box facilities, post boxes and parcel boxes on islands and secure boxes for storage of post to and from the islands”.

Although PostNord’s obligation to offer national coverage could be revoked, the government’s own legal obligation to ensure would still exist. That means the government would have to continually monitor postal services, according to the draft proposal reported by DR.

If there is not sufficient coverage, the transport ministry could again nominate a company to provide it.

Summer houses would not meanwhile get post delivered directly, if the proposal is adopted. Instead, summer house areas would have a shared or central post delivery point.

Negotiations over the proposal are still ongoing and the final agreement could therefore be different from the draft version reported by DR.

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