Government Minister Terry Lister will be able to make changes to postal rates without first getting permission from the House of Assembly, under new legislation passed through the House of Assembly yesterday.

The Post Office Amendment Act 2009 will mean the Post Office can change rates in a more timely way — meaning it can compete better with rivals such as courier firms — the E-Commerce Minister told MPs.

Mr. Lister said: "The monopoly of the Post is a long past reality and, in order to be more competitive and responsive, many postal administrations have changed their structures to compete in a business environment which demands that commercial entities providing the same service and products respond immediately to changing conditions created by their competitors. The Bermuda Post Office seeks to be a strong contender in today's competitive marketplace, and earn credibility among customers and stakeholders, across the Island and internationally.

"The Bermuda Post Office has improved its service to all customers by adopting efficient business processes that are coordinated to provide secure, prompt and reliable levels of service.

"Of course, we all still hear tales of those few letters that go astray and arrive at their destination quite late but the reality is that the vast majority of the mail is delivered on a timely and efficient basis."

He outlined efforts to improve the service, but added: "The Post Office is hampered in its ability to adjust its prices to the market conditions that impact its costs and its profitability and thereby is unable to be self sufficient in the provision of its services to the public — at substantial cost to the taxpayer.

"While most private couriers have had the latitude to quickly adjust their prices to reflect increased costs over the years, the current legislation does not permit the Bermuda Post Office to operate within a similar business structure. In order for the Post Office to adjust its prices to accommodate market conditions, an affirmative resolution has to be placed before this Honourable House, debated and subsequently passed. I am sure you would agree that no competitive business could survive under similar measures."

United Bermuda Party MP Charlie Swan and Shadow Education Minister Grant Gibbons raised concerns that the House, and therefore the people, would not get a say before decisions are taken over postal rates.

Shadow Finance Minister Bob Richards said the Post Office offers better prices than its rivals and did not suffer from a lack of competitiveness. Mr. Richards argued the problem is a perceived lack of quality.

Mr. Lister responded that the message needs to be got across to people that the quality is there.

Sports Minister Glenn Blakeney spoke to say he supports the legislation.