Services at the mercy of technology

Friday 26th November 2010, 3:00PM GMT.

IN 1854 Jersey pioneered a new development in postal services. In the wake of a report by Anthony Trollope, the great novelist who was also a senior Post Office employee, St Helier was successfully used as a proving ground for pillar boxes before they were introduced into the UK.

Now, a century and a half later, the Island is experiencing another communications revolution, albeit one based on far more sophisticated technology than the humble cast-iron post box. The revolution, moreover, is global rather than local.

Postal services clearly remain relevant and very useful – particularly for bulky items – but they now face intense competition from other methods of delivering a message. Mobile phone texting, email and internet postings are all highly attractive and convenient alternatives to writing, stamping and posting a letter.

We should, therefore, register little surprise when it is pointed out that the Island’s postal services are facing increasing challenges in terms of turning a profit from traditional activities. Nor should we be surprised if Jersey Post is obliged to make savings through greater efficiencies to make economic sense of their operations.

That said, as a recent consultation exercise indicated, the idea that postal deliveries should be restricted to three a week was a potential step too far. The revised proposal – deliveries on five days of the week – is far more acceptable. Indeed, against the background of changing patterns of communication it is perhaps as much as can be hoped for.

It is, meanwhile, significant that market pressures based on loss of business to new technology are not the only difficulties faced by Jersey Post. The utility, which occupies the middle corporatised ground between public ownership and free enterprise, is also scrutinised by the Jersey Competition Regulatory Authority. In addition, it is facing increased competition in the field of fulfilment, which accounts for half the volume of mail currently handled by our postal authority.

Earlier this week the JCRA announced that it was proposing to extend price control over Jersey Post for another year. It has also emerged that the global giant TNT will be entering the local market.

These are obviously very challenging times for a service which, for many years, we have taken more or less for granted. Free market forces and the almost unbelievable pace of technological change are producing conditions which would flabbergast Trollope were he alive today and are, even by today’s standards, quite astounding.

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