THE ISLAND'S postal service continues to face serious problems despite the attempts over the past five years to reform its management structure and operations.
The report last week of budgetary shortfalls resulting in utility companies disconnecting electricity and telephone services underscore the extent of the problems. The initial reforms which led to the formation of the Postal Corporation of Jamaica to replace the Post and Telecommunications Department, were meant to push the agency to become a more commercial operation. There were also extensive refurbishing and moves to improve efficiency in the delivery of mail as well as to provide the public with technology-driven over-the-counter services.
Indeed, the Government stated that its expectation was that the Postal Corporation would be able to attract a larger portion of the market for mail and package services.
It does not appear that the moves have been particularly successful. For one thing, most of the new services being offered by the postal service can be had from other providers at a cheaper and faster rate. Additionally, many companies have already resorted to using private couriers to ensure delivery of mail and packages allowing them to have greater control over the integrity of their transactions the post offices being notorious for extensive mail tampering and theft.
Three years ago, the published figures for the agency showed it operating at nearly $100 million in the red raking in revenue of just over $605 million while expenditure totalled $704 million. There seems to have been little change for the better since then.
The Post Master General said last week that the Corporation needed about $1 billion to operate efficiently but most of the $750 million allocated by the Ministry of Finance for this fiscal year has already been spent, hence the utility disconnections.
Perhaps the time has come for the Government to look again at the reforms started and accept that the organisation is just not capable of meeting the demands of our changing, albeit contracting economy. It just may not be able to continue to provide universal service at reasonable rates. Making Internet-based services, fax services, money transfer across the country available to more locations, is a fine ideal but likely to prove unprofitable.
This hard look may mean having to close down some post offices and reduce staff complement. These are not easy decisions but the times call for pragmatism.
A leaner, more efficiently-run service that allows for some subsidy of operations in semi-urban and rural areas will likely prove more useful than the fantasies of telecommunications boutiques.
THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.
