25 January 2012 Last updated at 09:24 ET

Two new companies given postal licences

LVCR allows Channel Island companies to sell some goods to the UK without VAT

Jersey's competition regulator wants to grant two new postal licences to companies delivering from the island to continental Europe.

A review into the postal market found that bulk mail companies wanted quicker deliveries to Europe.

The regulator wants to offer licences to UK companies TNT Post Limited and Hi-Speed Freight Services.

They would deliver packets and large letters from Jersey to continental Europe and Ireland.

John Curran, the executive director of the Jersey Competition Regulatory Authority, said new providers would benefit the fulfilment industry.

HM Revenue and Customs published proposals to end Low Value Consignment Relief (LVCR) from April 2012.

'Losing battle'

In his Autumn Statement, UK Chancellor George Osborne said: "We're going to tackle the exploitation of LVCR.

"[It] has left our high street music stores fighting a losing battle with warehouses in the Channel Islands."

In the statement it was estimated the ending of the relief, due to take effect from April 2012, would make an additional £90m for the UK government in its first year.

Mr Curran said: "We are very conscious with the changes proposed to LVCR that there is a real risk to the fulfilment industry in Jersey.

"We want to licence to new operators to better serve the European market which will give fulfilment companies in Jersey more options to develop new markets and expand into new markets."