Vol. 454 No. 7
8 Mr. B. O'Keeffe asked the Minister for Transport, Energy and Communications the consequences, if any, for An Post of the liberalisation of telecommunications under DG4; and the steps, if any, he has taken to counter this move at the Council of Ministers. [11556/95]
I understand the Deputy's question relates to proposals, including possible liberalisation of national postal services, contained in the EU green paper on the Development of the Single Market for Postal Services which was published in June 1992.
It had been expected that the European Commission would bring forward proposals for liberalisation at the Telecommunications Council on 13 June 1995. The Commission was not in a position to do so however but indicated that it hoped to do so before the end of July 1995.
In the absence of the Commission's proposals it is not possible to assess the impact they may have on An Post. The company is already subject to competition from modern technology such as electronic mail and facsimile, as well as from private sector operators. I have recently asked the chairman of the company to review the role and method of operations of An Post, so that it will be in a position to respond to the challenges and opportunities which exist now and in the future for postal services.
I asked what steps the Minister had taken at Commission level to influence the liberalisation. I did so because there are 8,000 direct employees in An Post and 2,000 working on an agency basis, and the liberalisation suggested by the Commission would have a major impact on the numbers employed by An Post. I am concerned about the Minister's gung-ho attitude to rationalisation in other sectors. I would have thought the Minister and his Department should voice strong objections to the Commission about the damage that will be caused to An Post by what is emanating from the Commission at this time.
The European Union Green Paper was published this month. It envisaged major changes, including liberalisation of national postal monopolies which would lead to increased competition for An Post. It was expected that 1994 would see the start of this process of liberalisation in the postal sector and that the European Union Commission would prepare necessary measures relating to definitions of the universal and reserved services, quality of intra-community service and technical standardisation. Although informal drafts have been circulated, surreptitiously I might add, no final or formal draft has been published by the Commission. All I can say clearly and definitively is that it will allow for competition, and the national monopolies that exist throughout the European Union will be challenged. I am anxious to ensure that An Post is prepared to confront that challenge and take advantage of the opportunities that will arise from it. I have already explained in detail the Irish position on this matter and we will closely monitor developments.
The Minister must be aware of the impact of liberalising cross-Border mail and direct mail and that they represent about 72 per cent of all letters going through An Post as against an EC average of 2 per cent. I understand that An Post has made it clear this will have a major economic impact on them and will result in major job losses within An Post unless there is some deregulation on the basis of Ireland's special position. Is the Minister aware that this week the Commissioner in Brussels indicated there was a social aspect to An Post and that we should emphasise this at Commission level?
I have outlined my position. I understand the Deputy's concerns which are uppermost in our minds. The Deputy can be sure I will put the position of An Post and of Ireland very strongly. The European Commission expected to present its proposals at the Telecommunications Council last May. It is now expected to do so before the end of July 1995. Until I see a draft or get an indication of what is proposeed, I do not wish to react. It is not possible at this stage to assess the impact on An Post because the proposals have not been put forward. However, my views in regard to An Post are clear and I have communicated them to the chairman of An Post and have asked him to carry out a fundamental review of the company so that it will be better able to meet the increasing challenges and competition that will confront it in the not too distant future.
I find it extraordinary that the Minister should say he can make no presentation because he has seen nothing yet and at the same time say the report should have been presented in June but has been postponed until July. There are indications as to what will be included in that final report. It is, therefore, only reasonable for An Post and its workers to expect their Minister to cogently present their case in advace of the proposals and thereby influence them before the process is revealed. I strongly urge the Minister at this late hour to become far more actively involved. It is ironic that the EU is pouring money into rural development and renewal while at the same time we seem to be forgetting about the social aspect of An Post which will be decimated by what is about to emanate if we do not become actively involved in influencing the process.
It is not a late hour. I put forward the Irish point of view during preliminary discussions. I do not accept that the postal service will be decimated. I have asked the chairman of An Post to conduct a fundamental review, the terms of reference of which will indicate where the challenge is coming from and how An Post can be strengthened to ensure it is better placed to take account of the new environment in which it will operate when decisions are taken at EU level. I am very conscious of An Post's position and have advocated it during preliminary discussions. We will communicate our views to the EU through the permanent representative and my officials. The Minister of State, Deputy Stagg, and I will be involved in discussions at ministerial level. We are conscious of the needs of An Post in the market place and will put its view forward.
In reply to questions, the Commissioner indicated that extra functions should be given to post offices. What proposals has the Minister in that regard?
The terms of reference of the review which I have asked the chairman of An Post to carry out cover the suitability of existing structures and functions in terms of strategically responding to the challenges and opportunities which exist now and will exist in the future; the compatibility of the existing mix of functions with the priority exercise of its core role of providing a reliable, value for money and quality postal service to the business communities and households; the need to generate sufficient profit to fund the future requirements of An Post and provide a dividend to Government; whether its various programmes, financial controls, cash transit procedures and human relations functions are operated efficiently, effective and are sufficiently responsive to the needs of its consumers now and in the future; delays in the postal service, notwithstanding recovery measures and associated investment particularly in the Dublin mail centre and the failure to achieve expected monetary savings. I expect the chairman will be in a position to report to me by the end of October. At that stage we will have a proper evaluation of the strengths and weaknesses of An Post and will be better able to evaluate the measures needed to ensure it is able to compete and maintain its dominant position in this country.
The Minister knows my view on the instruction to the chairman of An Post to review his company. It is a job the chairman of every State company should do, so it should not be a big deal. Will the Minister assure me that, unlike the reports on Telecom Éireann and Aer Lingus, this report will be published and debated in the House? May we have open Government?
The Deputy attempts to discredit the review I commissioned.
I want to see it.
The Deputy said it is not a big deal.
Every chairman reviews his company.
It is a bigger deal that any Fianna Fáil Minister was able to achieve. This is the first time we have asked for such a fundamental assessment. If the report contains commercially sensitive information it will not be made available.
The Minister will sit on it just as he did with the other two reports. Secret Government.
Has the Minister given any specific instructions to the chairman, apart from the terms of reference, vis-á-vis the future operations of An Post?
I have not given any specific instructions in respect of any matter.
Or indications?
Or indications. This is an overall assessment and review of existing operations. It will take into account the changes necessary to ensure that An Post will be in a position to meet the competition which will arise in this country from outside influences.
And it will be kept secret.
There is a big vault in the Department now.
That concludes Question Time for today.
