Eamon Gilmore
Question:55 Mr. Gilmore asked the Minister for Public Enterprise the recent decisions of the EU regarding the postal service which have been communicated to her; and if she will make a statement on the matter. [9078/00]
Other Questions. - Postal Service.
There have been no decisions taken by the EU specifically in relation to the postal service since the adoption over three years ago of Directive 97/67/EC on Common Rules for the Development of the Internal Market of Community Postal Services and the Improvement of Quality of Service.
Perhaps the Deputy has in mind the subject matter of a recent press report regarding a proposal by the European Commission to request member states to supply details of the accounts of their national postal operators in order that it may evaluate the extent of cross-subsidisation, if any, between the monopoly and competitive areas of their activities. The press report in question, which I have seen, also refers to the possibility of VAT being applied to the competitive part of the postal market.
I understand the Commission expects to submit a proposal for a further directive on the deregu lation of the market in postal services for consideration by the member states later this year. I cannot comment on those matters because the Commission has not contacted us but I have read the newspaper article.
If the directive which is the subject of the press report were to come into operation it could have serious repercussions not only for the future of sub-post offices but An Post in general which is in a precarious position.
I accept that if what we read in the newspapers came to pass it would be serious. Given that it has not come to us around the table, there is long road to go. The rural post office network, which the previous Government and this Government have endeavoured to sustain, would be in a precarious position if the newspaper indications came to pass. I do not think that will happen. The Government is committed to retaining the rural post office network.
Can I interpret that as a guarantee from the Minister that there will not be any closure of sub-post offices?
The Government is totally committed to the rural post office network. The proposed directive which was the subject of the newspaper article has not yet come to us in any form. In the newspaper yesterday I read that An Post is finding it difficult to fill vacancies. If An Post does not fill a position the company re-advertises it, but An Post is finding it increasingly difficult to fill the positions of rural postmaster and postmistress.
If the conditions were improved there would be no trouble filling the positions.
Will the Minister take an initiative to offset the effect of the regulation which was the subject of the newspaper article? Does she agree that when 113 sub-post offices account for only 9% of An Post's business, the position is highly precarious? Regardless of whether a new regulation comes into effect, this group of post offices is doomed if the Government does not take steps to provide income for them.
I accept the Deputy's premise as he outlines it. However, the process by which the contract for a service is allocated is more and more subject to EU scrutiny. The EU is looking at these matters and I think that is the background to the newspaper article to which we have been referring. An Post has put forward £5 million from the sale of An Post On Line and the Government is committed to contributing towards that to enable the post office network to achieve new technology. More and more, the allocation of extra services must be the subject of competition. That is the way things are going.
Does the Minister agree that VAT at 21% on postal services would be a disaster for An Post, given the pressure the company is under from lowering telecommunications costs and e-mail? Will she set out a clear Government statement that we will do everything we can to repel this?
I have no hesitation in saying that I would resist that very strenuously.