Post not allowed to increase prices for newspaper delivery

Swiss Post is not allowed to raise the rates for discounted delivery of subscription newspapers. The federal government has rejected Swiss Post’s request to increase the rates. It has approved only an adjustment for inflation for 2010.

An increase in prices would contradict the principles approved by parliament in 2007 when the press subsidy system was revised, writes the Uvek in a statement on Wednesday, according to SDA. According to this, the price increase must be limited to compensating for inflation. Swiss Post therefore has a margin of 2 percent, which corresponds to an average of 0.5 centimes per copy. This assessment is also shared by the price watchdog, according to the Uvek.
Swiss Post had asked the Department to be allowed to increase the price for the delivery of regional and local newspapers by one centime per copy and the price for the delivery of membership press titles by two centimes per copy.
Council of States wants to maintain indirect press funding
The issue of the tariff system will be debated again in the current revision of the Postal Act. In the winter session, the Council of States dealt with the delivery of newspapers. It would like to retain the current model of indirect press subsidies. Under this system, the federal government covers part of the costs incurred by Swiss Post through the discounted delivery of subscribed newspapers. In 2007, Parliament decided that the Confederation should contribute a total of 30 million a year. 20 million is earmarked for regional and local newspapers with a circulation of up to 40,000 copies and 10 million for member newspapers of non-profit organizations. The National Council had originally proposed a solution that would have also benefited large publishers.
Swiss Press Association satisfied
In a communiqué, the Swiss Press Association expresses its satisfaction with the decision of the Uvek. With its decision of December 23, 2009, the Uvek has sent a clear signal. By maintaining the prices for the discounted daily delivery of subscribed newspapers and magazines, the federal government has created the basis for ensuring that publishers and subscribers will not incur any additional costs - with the exception of inflation - in these difficult economic times. The press needs such framework conditions in order to be able to provide as broad and diverse an orientation as possible in our democracy.
Swiss Post has the task of ensuring the basic service. "In addition to letters, this also includes newspapers and magazines for daily delivery. While the volume of letters fluctuates and is constantly decreasing, subscribed newspapers and magazines form a calculable workload for the postal business," writes the association. "The publishers cannot accept that the decline and the newly created competition for letters should be compensated for by increasing distribution prices for newspapers."

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