Push the envelope

THE POSTAL corporation (TTPost) needs to push the envelope when it comes to its business model or else face the grim possibility of complete obsolescence in the internet age. That much is clear from recent disclosures about its financial performance during the budget debate. The cost of doing otherwise is too high.

According to Public Utilities Minister Robert Le Hunte, TTPost’s revenue for 2018 was $66 million but expenditure was $141 million. For 2019, revenue was $68 million but expenditure was $147 million. The projected revenue for next year is just $77 million – hardly a turnaround.

The trajectory is hardly surprising considering the impact of the digital age. E-mail, fax, social media, and instantaneous forms of communication have cut the demand for “snail mail.” Additionally, most of these tools are completely free, giving users yet another incentive to abandon the long queues for stamps at their local post office.

It’s a global phenomenon. In 2012, the US Postal Service closed about half of its post centres and axed 28,000 jobs. The cuts resulted in a drastic slowdown of service. In the UK, where the Royal Mail is an institution, regulators oversee annual reviews. In 2015, the mail implemented rationalisation of mail centres, automation, and optimisation of logistics and delivery.

TTPost, however, appears headed in the opposite direction. The post sometimes has the appearance of being erratic. Letters take only days to cross thousands of miles to enter the country but can take weeks to snake their way through the network of offices and delivery centres. These inefficiencies need to be reversed. And TTPost – whether in public or private hands – needs to look to the future.

Concerns over the risks of digitisation and the abuse of the internet have led to something of a revival in the “old time” use of tactile media and ephemera. Manual mail has a certain charm. Environmental concerns notwithstanding, many still prefer to receive things in hard copy.

TTPost is hardly unaware of the need for change. Some time ago, the corporation underwent extensive rebranding, with a new logo and image. It’s time, however, for changes that are less skin-deep.

A shift in business model does not necessarily mean job losses. In fact, it’s the opposite. Failure to change the business is irresponsible: placing all jobs at risk in the long run. It’s in workers’ interest that the corporation becomes more efficient and better tailored to the needs of its customers today.

In this regard, the question of public/private ownership is relevant. A private sector organisation is more likely to make the kinds of changes necessary to stay afloat. But the standards of the private sector should also apply to public corporations.

Whoever is in charge, if no one pushes the envelope at TTPost, the corporation may well find itself doing something else: folding.