The French Senate yesterday adopted the draft law regarding the transformation of La Poste into alimited company that will remain 100% state-owned.
The UMP and Union parties voted for the law with 183 votes against 152 votes from theopposition Socialists, Communists, Greens and other smaller parties.
With this approval, the senate is guaranteeing the public character of the company’s capitalowned exclusively by the state. It has confirmed La Poste’s status as the national postal operatoroffering a public service according to the preamble of the Constitution from 1946.
Two key changes to the draft law were approved by the Senate. The number of postal servicepoints across France should not be less than 17,000 outlets with a complete portfolio of postal andbanking services. The financing of the service point network is also guaranteed under an annualrevision of the local fiscal system based on cost evaluation of the service point network which iscarried out independently by the postal regulation authority.
The draft law contains two parts. One part concerns the European regulation regarding thepostal liberalisation in 2011 while the other deals with transforming La Poste into a limitedcompany as of January 1, 2010. Under a subsequent €2.7 billion capital increase, designed to raisefinancing for strategic growth, the French government would contribute €1.2 billion and thestate-owned Caisse des Dépôts (CDC) a further €1.5 billion. La Poste’s current status as a publicorganisation (‘établissement public industriel et commercial’) has legally prevented such a capitalincrease.
Marie-Thérèse Bruguière (UMP) welcomed the approval of the law, describing it as an “indispensable reform which will give La Poste the means for its modernisation given the challengeof full postal privatisation in 2011.”
The opposition, however, criticised the approval of the draft law. “This text clears the wayfor a total privatisation of the public operator,” claimed Jean-Claude Danglot (CRC-SPG). “This isthe oldest and the most emblematic public service which will be provided by a limited companysubmitted essentially to legal regulations. Never before has a government gone so far intransferring a public service,” declared Michel Teston (PS).
“In the medium term, the change of La Poste’s status will inevitably lead to disengagement ofthe state up to weakening of social capital, increasing cases of discomfort at work and postalservice at a discount,” criticised Jean Désessard from the Green party.
In July 2008, La Poste signed a public service contract with the French government covering2008-2012 confirming the company’s commitment towards four basic service areas and preparing it fortotal postal liberalisation in 2011. The contract included commitments to mail deliveries six daysa week and mail delivery quality targets, the maintenance of 17,000 postal service points acrossFrance, and public access to banking services. The contract was seen as an effort to calm postalunions which have always strongly opposed opening up La Poste to private investors.
