PostNord loses state support and obligation to deliver to all of Denmark
The government and several opposition parties have agreed to make changes to postal services that will see PostNord lose its obligation to deliver post to all of Denmark. Instead, market forces and competition will be relied on to ensure that all parts of the country can receive post.
Of all shipping services that operate in Denmark, only PostNord has the obligation to deliver post to all parts of the country, but this will be revoked.
Although PostNord’s obligation to offer national coverage will be revoked, the transport ministry will continually monitor postal services and step in if there is not sufficient coverage. The deal means that millions of kroner of annual state support for PostNord will be cut.
READ ALSO: Why Denmark’s postal services could undergo major change
The parties that will join the government in voting for the new postal laws are the Liberal Alliance, Conservatives, Social Liberals, Alternative and Nye Borgelige (New Right).
Delivering post to the entirety of Denmark has given PostNord repeated annual losses in recent years, with the state supporting the company to the tune of hundreds of millions of kroner.
“It’s good news that there is now broad agreement on a postal law suitable for current times which encompasses our political desire for uniform prices across the country and free choice of letter and parcel delivery services for the public in all of Denmark,” Transport Minister Thomas Danielsen said in a press statement.
Concerns have been raised that the deal would result in a lack of post coverage in remote parts of the country. The Denmark Democrats walked out of talks to back the new post law earlier in the week, citing this issue.
“It’s been crucial for us in these negotiations that all Danes in all of the country will still be able to send and receive letters,” Social Democrats transport spokesman Thomas Monberg said in the statement.
The libertarian party Liberal Alliance praised the decision to entrust the post to market forces.
“This is the end of sending tax revenues after a delivery obligation which the market can fulfil without any problem. Danes can now look forward to others doing it better. I’m in no doubt that this will give a better service for the right prices,” the party’s transport spokesperson Jens Meilvang said.
The deal includes a special arrangement for small islands which the parties say will improve postal services in such remote locations. Investment will be made in post infrastructure on the islands to facilitate free choice of services for residents, according to the agreement.
Air mail and post facilities for visually impaired people will continue to receive state support. The changes to the post laws will come into effect on January 1st 2024 but with transitional arrangements in place in some areas.
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Of all shipping services that operate in Denmark, only PostNord has the obligation to deliver post to all parts of the country, but this will be revoked.
Although PostNord’s obligation to offer national coverage will be revoked, the transport ministry will continually monitor postal services and step in if there is not sufficient coverage. The deal means that millions of kroner of annual state support for PostNord will be cut.
READ ALSO: Why Denmark’s postal services could undergo major change
The parties that will join the government in voting for the new postal laws are the Liberal Alliance, Conservatives, Social Liberals, Alternative and Nye Borgelige (New Right).
Delivering post to the entirety of Denmark has given PostNord repeated annual losses in recent years, with the state supporting the company to the tune of hundreds of millions of kroner.
“It’s good news that there is now broad agreement on a postal law suitable for current times which encompasses our political desire for uniform prices across the country and free choice of letter and parcel delivery services for the public in all of Denmark,” Transport Minister Thomas Danielsen said in a press statement.
Concerns have been raised that the deal would result in a lack of post coverage in remote parts of the country. The Denmark Democrats walked out of talks to back the new post law earlier in the week, citing this issue.
“It’s been crucial for us in these negotiations that all Danes in all of the country will still be able to send and receive letters,” Social Democrats transport spokesman Thomas Monberg said in the statement.
The libertarian party Liberal Alliance praised the decision to entrust the post to market forces.
“This is the end of sending tax revenues after a delivery obligation which the market can fulfil without any problem. Danes can now look forward to others doing it better. I’m in no doubt that this will give a better service for the right prices,” the party’s transport spokesperson Jens Meilvang said.
The deal includes a special arrangement for small islands which the parties say will improve postal services in such remote locations. Investment will be made in post infrastructure on the islands to facilitate free choice of services for residents, according to the agreement.
Air mail and post facilities for visually impaired people will continue to receive state support. The changes to the post laws will come into effect on January 1st 2024 but with transitional arrangements in place in some areas.
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