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Dáil Éireann debate -
Wednesday, 30 Mar 1994

Vol. 440 No. 8

Ceisteanna—Questions. Oral Answers. - Postal Services.

Desmond J. O'Malley

Question:

7 Mr. O'Malley asked the Minister for Transport, Energy and Communications if his attention has been drawn to the fact that, notwithstanding his assurances in reply to Parliamentary Question No. 3 of 17 February 1994, there are still deficiencies in the postal services to, from and within Dublin; if his attention has been further drawn to the fact that the computerised operations recently installed by An Post are not working properly; and the steps, if any, he proposes to take with An Post to have the postal services restored to a reasonable level of efficiency.

Richard Bruton

Question:

10 Mr. R. Bruton asked the Minister for Transport, Energy and Communications whether he has had discussions with An Post regarding the percentage of next day deliveries in Dublin following the introduction of automatic sorting from the Clondalkin Centre.

Jim Mitchell

Question:

32 Mr. J. Mitchell asked the Minister for Transport, Energy and Communications if his attention has been drawn to the difficulties being experienced by customers of the postal service; and the steps, if any, he will take to assist an immediate improvement in the service, particularly in the Dublin area.

Phil Hogan

Question:

72 Mr. Hogan asked the Minister for Transport, Energy and Communications if his attention has been drawn to the difficulties being encountered by businesses due to the problems associated with postal services; and the initiative, if any, he will be taking to improve customer services.

Ivor Callely

Question:

77 Mr. Callely asked the Minister for Transport, Energy and Communications if his attention has been drawn to the late deliveries by An Post in the Dublin areas since the introduction of the new mail sorting system; the steps, if any, he will take to ensure that postal deliveries will revert to the traditional early morning receipt of post by Dublin people; and if he will make a statement on the matter.

I propose to take Questions Nos. 7, 10, 32, 72 and 77 together.

Normally, matters such as those raised in today's questions and in the questions on the same topic tabled on 17 February 1994, would fall within the day-to-day administration of the State body concerned. However, in view of the widespread public concern about the quality of the postal service arising from An Post's new arrangements, I have felt it appropriate to get a report from An Post in the matter.

As I indicated in my reply to question No. 3 on 17 February 1994, An Post implemented a programme of changes in the arrangements for distribution and delivery of mail in the Dublin area. These changes were introduced on 17 January 1994 and were part of An Post's recovery measures to reduce costs and improve profitability.

The changes introduced gave rise initially to two main problems. First of all there was the question of next day deliveries and secondly there was the question of delivery times in Dublin.

With regard to next day deliveries, in the week the Dublin Mails Centre was opened next day deliveries for letter post nationwide, as sampled by an independent market research company, fell to 68 per cent compared to results of over 90 per cent in each of the last four years. By the week commencing 14 February this figure had risen to 85 per cent and based on this improvement I was assured by An Post that next day deliveries were back to normal. However, this did not materialise and next day deliveries slipped in the weeks commencing 21 and 28 February. Things improved again in the following weeks and the most recent data available, which covers items posted during March, show an average 93 per cent next day delivery nationwide. I have spoken to An Post and I am assured that the company will be able to maintain this level of performance regarding next day deliveries in the future.

The figure of 93 per cent is based on postings Dublin to Dublin, provinces to Dublin, Dublin to provinces and provinces to provinces. An Post have informed me that Dublin to Dublin, Dublin to provinces and provinces to provinces next day deliveries for March are 91 per cent, 91 per cent and 99 per cent respectively. The exception to this good performance is provinces to Dublin post which shows 84 per cent next day deliveries. I have stressed to An Post the necessity for getting the provinces to Dublin performance back to the national average at the earliest possible date.

In my discussions with An Post I inquired about the operations of the optical character recognition equipment installed in the Dublin Mails Centre. I was assured that the equipment is performing satisfactorily and is already processing 80 per cent of Dublin mails. I also understand that An Post will be advising their customers again about the best preparation and addressing of mail to optimise the use of the new equipment.

In fact the problems of the last three months relate not so much to the performance of the new equipment as to the organisational and logistical difficulties of implementing major changes simultaneously. The organisational problems derived from the need to embark on a massive re-training exercise, an exercise which An Post admit they underestimated. The logistical problems arose from the need to handle some mails outside the Dublin Mails Centre during its transition to full capacity processing thus creating a volume of mail which was not ready in time for the morning delivery.

This led to the second main problem I referred to earlier, namely the delivery times for customers in Dublin, particularly the key business areas of the city. An Post have informed me that, in consultation with the trades unions, after my meeting with them management is reexamining the arrangements for deliveries in these business areas and that they are aiming to effect significant improvements which will begin to show in the next couple of weeks. I have told the company that I expect such improvements to be seen within that time frame.

We must all keep in mind the fact that what is being attempted in An Post is a massive overhaul and reorganisation of practices and the introdution of up-to-the-minute technology in an area that was without change for so long. The company, in making these changes, has set out to effect significant cost savings in operations while maintaining the quality of service the public has come to expect.

I have indicated to An Post, however, that I am concerned that the new arrangements are taking so long to become fully effective but they have assured me that both managment and staff ar doing all they can to return to the pre-January 1994 standards. That this is taking longer than anticipated is a matter for regret but I am prepared to give all concerned a further short breathing space to allow the new arrangements to measure up to what the public requires and is entitled to receive.

I thank Deputy Hogan for the assiduous way in which he pursued this issue. Did the Minister look behind the statistics? The current level of provinces to Dublin post is 84 per cent next day deliveries but is he aware that An Post reject 50 per cent of letters as wrongly addressed and these letters are not used in this percentage? Is he aware that there are particular problems in the Dublin 1 and 2 areas? They receive their post many hours later than is the norm. Was there an element of mismanagement in the way this was done, particularly at a time when An Post laid off 100 part-time workers and have plans to lay them all off? Would he agree that something went wrong when we have people on the dole and a hopeless system?

I do not accept that we have a hopeless postal system.

That is an over-reactionary and not very complimentary remark to make about management and staff who are addressing these issues.

It has nothing to do with staff.

This has come about as a result of the most comprehensive overhaul in the delivery of the postal services in the history of An Post in order to ensure its viability and competitiveness. Sincere and detailed negotiations were carried on. There are difficulties but these are being tackled. The company is a commercial semi-State body and has to make its way in the world. We want to ensure that we provide a quality service that is competitive. That is the mission given to the company and it is carrying it out reasonably successfully. I acknowledge there are difficulties and I discussed these issues with management. They are being addressed. Specific measures are being taken in the problem areas that exist. In mid-April we will have the usual high standard of service we have come to expect from this company.

I am surprised at the Minister's optimism that in two or three weeks time everything will be all right and we will be back to the pre-Christmas 1993 service. That commitment was given by An Post management three months ago and we are still waiting for a good service. The amount spent on improving this service was £20 million but we have a worse service. That is unacceptable and something should be done about it. It is gross mismanagement. Will the Minister ask An Post for clarification about the problem of incorrectly addressed envelopes and the technological difficulties in dealing with this and handwritten envelopes? I understand there is a major problem with the new technology. Business is suffering. Many companies get post in the morning rather than the afternoon. Costs have risen and jobs are at risk. Will the Minister have a hands-on approach to ensure that the commitments given will be honoured at the earliest opportunity?

I discussed this matter with An Post. There are arrangements in train to deal with specific problems. These arrangements emanated not only from discussions with me but from staff who are anxious to ensure the quality of the service. Deputy Hogan is in a dilemma — does he want a competitive and commercial postal service or does he want to threaten the viability of An Post?

We want a good reliable service.

It is the intention of An Post to provide that.

It is not happening.

It is. I accept there are outstanding areas which are causing problems. When we look at the level of change which has been implemented in An Post to the credit of all concerned who are interested in providing the quality of service which not only we but they as a professional company aspire to, we must acknowledge there will be teething problems. The outstanding issues are being addressed and it should be left to the management and staff of An Post to do so. Following my discussions, I am confident that we will get back to the pre-Christmas service we had and that the company's competitiveness will ensure them a viable future.

Is the Minister aware that prior to the coming into being of the reorganised postal system many members of the public expressed concern to An Post that the new system would not be efficient and An Post dismissed these concerns? Did he inquire as to why they did not anticipate the difficulties which have arisen, why they did not make the appropriate arrangements regarding the training of staff, have a trial of the equipment and so on? Why have we ended up with this mitigated disaster where one in every six letters posted outside Dublin does not arrive on time and one in every ten letters posted in Dublin does not arrive in time?

The changes in work practices which will make the company more competitive have been agreed and negotiated by management and staff in good faith. The change from Sheriff Street to the mail centre was a major move which had to be done in one go. That was negotiated and agreed. In fairness we must allow that the judgment of those involved in this matter will be better than ours. They acknowledged that some of the difficulties they anticipated are more prolonged than expected. They are addressing the issues. The upfront way that was reported and the fact that we have external audits from the MRBI as to the position is an indication that An Post is anxious to have satisfied customers, not dissatisfied ones.

They have many of them now.

They should be allowed address the issues, considering the major changes in practices and methodologies which have been brought about following long and painstaking negotiations with the staff.

The Minister will forgive me for mentioning a personal experience I had with the new postal delivery system. A letter posted in Andrew Street Post Office, less than half a mile away, on 13 February last was delivered to me in Leinster House five weeks later. On the envelope my name was written in English and the address was as follows, Leinster House, Dáil Éireann, Baile Átha Cliath. The new optical reading system seems to have difficulty sorting addresses in two languages. Will the Minister give an undertaking that the new optical reading equipment, is a computer based system, will be able to deal with Irish as well as English?

I have not the technical expertise at my disposal to know whether that is possible and I will certainly refer the matter to An Post for a reply to Deputy Connor. The equipment is working very satisfactorily and up to 700,000 letters are being sorted——

And it takes five weeks to deliver a letter.

The Deputy has given one example. I am not disputing the incident but in the context of the number of letters being delivered in the city and throughout the country it represents only .000001 per cent. What is required is that we acknowledge the issue, address the problems and do what is necessary to resolve them.

As a result of meetings with An Post, and between management and staff the work is in train and they should be allowed to get on with solving the problems.

Was it Stanley Robinson who said that machines were marvellous but they could not do the work that was wanted of them? The Minister says this new system is necessary for An Post to be commercially viable but can this mayhem be helping An Post's commercial viability?

Would the Minister be willing to take questions again after the next survey has been conducted by MRBI? Will he ensure that the next MRBI survey includes a question on satisfaction rating by customers and that it refers to what happens to letters posted and not just the letters An Post deems to be correctly addressed and on which they are measuring their performance?

The Deputy will accept the MRBI surveys are scientific and independent. The convulsions on the Opposition benches when they heard they were on 17 per cent in the opinion polls would indicate they believe the MRBI surveys.

They are not the real poll.

I am trying to return the flippancy of the earlier remark. Deputy Bruton is not known for his emotion and it is not correct to say there is mayhem in the system. There are difficulties, but they are being dealt with. The present situation is not satisfactory and will not be from the company or staffs point of view until they have achieved 95 per cent first day deliveries. They are heading towards that and the surveys show that steady improvement. However, it is taking longer than anticipated and extra measures are being taken to resolve the difficulties. I hope that by the next time I answer questions, the matter will have been resolved.

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