mandag 26. november 2018 12:20

ITD has submitted a protest concerning capital contribution to PostNord Logistics

ITD now asks the EU Commission to assess the legality in capital contribution to PostNord Logistics. ITD has just submitted a protest to the Commission, because ITD believes that the capital contribution to the unprofitable company is illegal government grant which goes against the EU’s rules.

The core business in PostNord Logistics is freight of mixed cargo and pallet cargo, and the company is in direct competition with private companies performing similar services. After several years with deficit, PostNord Logistics suffered a loss of 91 million DKK during last accounting year and hereby lost the entire share capital. And it is not the first time, the company loses the entire share capital, because already in 2013 the company lost their share capital. Never the less, the parent company PostNord Group has in connection with the 2017 annual accounts reported that they want to solve the operational problems with capital contribution to PostNord Logistics. PostNord Group believes that the capital contribution is given on market terms and therefore does not contain government grant.

 

ITD now protests against that solution to the EU Commission.

 

- PostNord Logistics has not only performed poorly during the last accounting year but during several years, and therefore a capital contribution will - in our opinion - not be given on marked terms. A capital contribution from PostNord Group to the subsidiary will therefore give PostNord Logistics a huge advantage and artificially keep the company alive on the private mixed cargo market, where there is huge competition, and where the capital contribution will affect ITD member companies, says Carina Christensen, CEO at ITD.

 

The essential part in the protest concerning the capital contribution to PostNord Logistics is that, even if it is PostNord contributing the capital contribution, it is the owner having taken the decision. Therefore the capital contribution includes government grant.

 

- PostNord Group’s capital contribution to PostNord Logistics is to us illegal government grant. Because, even though the money on paper is found in PostNord Group, the company is a state-owned company governed by the government from the inside, and therefore you can say that the case here will be illegal government grant in the form of capital contribution, says Carina Christensen.

 

ITD follows the case closely. The EU Commission now assesses the protest and ITD will probably supply further information during the time the case is examined by the Commission. The Commission’s assessment is to result in a decision, and when it arrives ITD will decide if a need exists to raise a government grant case at the Court of Justice of the European Union.

 

 

Photo: Torben Klint, Ritzau/Scanpix

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