Government won’t commit Malta’s newly privatised postal services not to raise prices, but Maltapost will only be able to increase prices if it produces “robust evidence” as justification.
Labour deputy leader Charles Mangion is calling on the Malta Communications Authority to ensure postal prices are not increased by Maltapost, which he described as a “private monopoly”.
Government however said it will be the MCA to determine whether price increases are justified. “The principle of gearing prices to cost ensures that… the postal business remains financially viable at the required quality standards,” the communications ministry said.
The MCA said it can only guarantee that it will “continue to ensure that the evaluation of any potential future price requests will take into account the principle of cost orientation and that postal services remain affordable to end-users.”
As Malta joins Germany and the Netherlands as the EU’s only completely privatised postal services, Maltapost remains bound by the universal service obligation.
Despite Labour’s reservations on privatising a “high-flying” government department, Mangion said Labour would not consider re-nationalisation if elected. But he insisted the MCA should not allow any increase in prices.
As the universal service provider, Maltapost is obliged to guarantee a minimum of one clearance and one delivery to the home or premises of every person in Malta and Gozo, on every working day and not less than five days a week. Post offices may only be closed or moved in agreement with the MCA, which can also order new access points.
And Maltapost remains obliged to provide clearance, sorting, transport and distribution of postal articles and packages up to 20kg; registered mail; a service for insured articles within Malta and abroad; and a service for the blind.
On 3 September, the Cabinet approved a 25% share transfer to Lombard Bank for Lm1.2 million. After buying Transend’s stake, the bank now owns 60% of Maltapost. The remaining 40% is to be sold to the public. In one fell swoop, Lombard became the key player in the banking sector by acquiring Maltapost’s post offices which will now provide banking as well as postal services.

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