PostNL calls for end to delivery duty as court rejects cash call

Postal delivery company PostNL has renewed calls to scrap its legal duty to deliver letters after a Dutch court ruled the government does not have to grant the postal company a €30 million subsidy.

The company appeal court said on Friday there was no evidence that PostNL’s financial situation was so urgent that immediate government support was required. In addition, the court said, the government could also consider other measures, such as further scaling back legislation guaranteeing a universal postal service.

PostNL had asked for an advance of two payments of €15 million, covering this year and next, as part of a wider €68 million request.

The company claims it has been losing money on mail delivery as volumes have fallen by 70% since 2009, while costs continue to rise. Because postal delivery is a statutory task, PostNL cannot stop providing it.

The court ruling prompted PostNL to describe the current position as “unsustainable.” It has now asked caretaker economic affairs minister Vincent Karremans to respond within two months.

The court acknowledged PostNL’s concerns but said it is up to ministers and lawmakers to decide on structural solutions.

Karremans announced in June that delivery times would be relaxed so that ordinary post can take up to 48 hours instead of 24. PostNL said at the time that the change was not enough to solve its financial problems.

The issue remains sensitive in The Hague. A previous proposal to extend delivery times was rejected by MPs, but Karremans went ahead with the change in June.

PostNL argues that easing delivery rules is only a partial fix and that financial compensation is still needed to cover current losses.