Transport minister decides lower service requirements for Post Danmark due to declining demand

The high level of postal services Danes have become accustomed to may become a thing of the past as of the start next year as Transport Minister Lars Barfoed plans major cost cuts.

Postage costs are likely to increase considerably and Post Danmark’s delivery service may be reduced from the current six days a week.
‘Mail volume has been declining for several years – 10 percent this year alone,’ Barfoed said.

‘We’ll have to see how we can get the postal service to hang together financially. But we need to think differently about our postal service, unless we want to give huge state subsidies to Post Danmark. And I don’t think anyone wants that.’

The state presently demands a range of service obligations for Post Danmark, including delivery requirements. In return, the company has a monopoly on letters weighing less than 50g.

Barfoed said he would look these and other areas to determine where the adjustments would be made.

‘I’m open to all possibilities to ensure good postal service in the future. Nothing is sacred – not how items are delivered, nor with what frequency or at what price,’ the minister said.

The Danish People’s Party has criticised the plan.

‘We just had a merger between Post Danmark and the Swedish postal service that was supposed to strengthen the companies,’ said Kim Christiansen, the party’s transport spokesman. ‘It is unacceptable that we’re now hearing we have to cut services.’
The Social Democrats say they believe the EU must first postpone the proposed liberalisation of postal services if Post Danmark is to survive such cuts.

Liberal Party spokesman Kristian Pihl Lorentzen said his party was ready to agree on a solution to the waning demand for postal service as long as it did not affect service in rural areas.

Post Danmark has already calculated what could be saved by abandoning Saturday deliveries, but found it would actually be better to stop delivery on Mondays.