Minister of Communications Yoaz Handel accepted the recommendations of the Rosen Committee and ordered the Israel Post to submit a plan to improve the service to the citizen within 40 days. The committee's recommendations have undergone slight changes following comments received at a hearing published in June 2020, following the report of the Advisory Committee for the Examination of Postal Services.
The Ministry of Communications stated that Handel accepted the committee's recommendations, emphasizing a number of areas of content. The committee determined that the poor quality of the postal services is the most burning issue in the postal field today. These services do not provide a satisfactory and appropriate solution, and do not meet the standard accepted in Western countries.
The volume of complaints about the postal services - including, among other things: waiting times at branches, telephone answering times, and the delivery and collection of packages - increases from year to year, as does the volume of complaints that are justified. Despite its efforts, it seems that the postal company has not fully adapted the service system to the digital age, does not provide the consumer with online services that will reduce audience performances and shorten queues, and a profound and comprehensive change is needed to address the situation.
The plan that the post office is required to submit to the Ministry of Finance will emphasize the transition to online services, in all areas of activity of the postal company and the postal bank, in order to reduce audience performances; Shortening waiting times at branches and answering the phone, creating a model that ensures compliance with service standards regarding the delivery of letters; Simplify and shorten package collection processes.
Following public comment, the committee found it appropriate to add two issues. The first is to promote the development and expansion of competition in the field of mail, while addressing the public's concern that too much freedom of action for the postal company may harm competition. The second issue is improving the level and quality of postal services to the public while maintaining a balance between the quality of service and the financial burden imposed on the postal company.
The competition will be opened in the following areas: In the field of reserved mail - letters and envelopes, as well as basic postal services, among others, in the field of individual mail, at prices and even in distribution centers.
In the mail distribution center, ie in the centers where distribution cells have been assigned to the recipient for the purpose of distributing mail (an alternative to a letter box at the recipient's home). All distribution centers are owned by the postal company and the mail items in the centers are distributed solely by it - these cells are not accessible to permit holders. In order to create a competitive balance in the distribution centers, permit holders will be able to compete in the entire "value chain" of the postal services in the reserved area. In the segment of the distribution center, they will enjoy a cost-based price and in this way the postal company will avoid the advantage of leaving the distribution centers in its ownership, so that the competitive constraint will be reduced and even eliminated.
As a complementary step, the committee recommends that the default be division into letter boxes, and only in certain cases will the establishment or expansion of distribution centers be possible. The firm will not allow the postal company to establish new distribution centers, except subject to a voluntary sharing model with other substantial permit holders in the market or by granting an exceptional permit.
With regard to the package market, it was determined that it does not meet an international standard and significant efficiencies and improvements are required. The ministry will promote a package market reform soon with recommendations for regulatory action. The goal is to prevent market failures, ensure lively competition and quality of service to the public. The bulk of parcels enter the country through the postal company, and the firm will test that there is no competitive failure in this segment.
In addition, the Minister instructed the professional echelon in the ministry to take increased, systematic and effective enforcement, also by increasing the amounts of financial sanctions, in order to ensure the implementation of the decisions.
Handel is determined to act with all the means at its disposal in order to bring about a rapid change in the level of service of Israel Post and its competitors. The Minister is aware of the postal company's efforts, but believes that the company must make fundamental changes and make the issue of service a priority.
The Ministry of Communications will assist the company in the best possible implementation of the report's recommendations, including turning the Post Bank into a bank that provides additional financial services as a social bank accessible to the entire population.