BONN (dpa-AFX) - Deutsche Post says it will continue to deliver letters and parcels throughout Germany. It has no plans to withdraw from the so-called universal service and wants to "continue to make this important contribution to the basic service," the company said on Tuesday in response to a query. The company referred to an article in the German newspaper "Die Welt", according to which the company is planning to withdraw from the universal service. The newspaper referred to information from the works council.

As a universal service provider, Deutsche Post must deliver items everywhere in Germany, unlike its competitors. In return for this nationwide presence, it does not pay sales tax on revenue from letter and parcel delivery.

Among industry experts, it is unlikely that Deutsche Post will withdraw from the universal service. However, it is possible. In that case, another company would be sought to take over nationwide delivery. If this were to happen, the costs for consumers would most likely increase. In addition, there is no such alternative company in sight. Swiss Post is by far the market leader in the letter and parcel business.

The German Federal Ministry of Economics and Technology plans to present key points for a reform of the Postal Act in the coming weeks. An initial draft bill could follow at the end of the year. The reform is very important for Deutsche Post. It hopes for rules that will enable cost reductions. In response to the "Welt" report, the company wrote that it wanted to "continue the transformation to a climate-neutral letter and parcel service." To do this, it said, it needed "future-proof framework conditions, which are currently being discussed in the context of the amendment to the Postal Act."

Walther Otremba of the Bundesverband Briefdienste (German Postal Services Association), in which postal competitors such as Pin AG from Berlin and Post Modern from Dresden are members, saw the exit plans as an attempt by the Bonn-based group to influence the reform debate. In his view, the current wage dispute, in which the Verdi union is demanding a 15 percent pay increase and has organized warning strikes, also plays a role. He said that the planning games were a threat to cut jobs. It is a "bluff to intimidate the union and to keep politicians from further liberalizing the postal market"./wdw/DP/jha