Bill extinguishes post monopoly

14/01/2009 05h05

Author believes that the government’s exclusivity is not compatible with modern economies

The Chamber is assessing the end of the Union’s monopoly on transportation and delivery of letters and postcards to locations or in times that are not assisted by the Brazilian Post and Telegraph Company (ECT). The measure is provided for in the Bill 3677/08, proposed by the Deputy Regis de Oliveira (PSC-SP).

The bill changes the Law on Postal Services (Lei 6.538/78) and also modifies the definitions of “letter” and “printed matter” in current legislation, allowing that mail such as newsletters, bills, and bank balances are not anymore the monopoly of the Post Offices. The objective, according to the author, is to increase the competitiveness and the efficiency of the Brazilian postal sector.

According to the text, letters and post cards sent to people located in non-fixed addresses, such as hotels and airports, can also be delivered by other companies.

Still according to the bill, letters and post cards sent from and to addresses that are not assisted by ECT; delivered in hours and dates that are not assisted by the post offices; in emergency and tracking regimes, which are not offered by the Post Offices; or in non-fixed addresses, such as hotels and airports, can also be delivered by private companies.

Regulation
The author of the bill reminds that the Law 6.538/78 regulates the monopoly on the exploitation of postal services and establishes rules for the distribution of letters, postcards, telegrams and grouped mail, in addition to excluding from the monopoly regime small deliveries and printed matters.

Regis Oliveira reminds that the law determined a one-year term for its regulation, made by the Decree-Law 83.858/79, which defined the meaning of letter, printed matter and grouped mail, and the exceptions to the monopoly. However, since the decree was revoked, that situation created “a legal gap which resulted in several legal disputes between ECT and private companies which operate postal services”, adds Oliveira.

Constitutionality
Currently, the Supreme Court (STF) judges the legality of the monopoly of postal services exerted by the Post Offices. The case is being discussed in a Pleading on Non-Compliance with a Fundamental Precept (ADPF46), judged in 2003 by the Brazilian Association of the Distribution Companies (Abraed), which defends the right of private institutions to operate in the market.

According to information that was published at the Supreme Court’s website, seven ministers have already voted, but the trial was interrupted in June 2008 because one of the magistrates requested the case records for examination. Five ministers have already declared to be in favor of the maintenance of the monopoly. One of them voted for the partial breach of the monopoly (only for commercial deliveries), another for the liberalization of the market. The votes of four members of the court are still missing.

For Regis de Oliveira, the idea that an only company, controlled by the Union, has the absolute exclusivity on the delivery of mail of any nature “constitutes a legal aspect which is not compatible with the modern, competitive, free and globalized economies of the 21st century”.

The deputy highlights that, if the private postal activity is considered as illegal, around 15,000 companies, which employ about 1,500,000 workers, can close their doors, “which could lead Brazil to a ‘blackout’ in communications”.

Procedure
The bill will still be analyzed, in conclusive character, by the Committees on Science and Technology, Communication and Computer Sciences; on the Economic Development, Industry and Commerce; and on the Constitution and Citizenship.

Report - Cristiane Bernardes
Editing - Marcos Rossi
Translation - Positive Idiomas Ltda