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Dáil Éireann debate -
Thursday, 19 Oct 2000

Vol. 524 No. 4

Other Questions. - Postal Services.

Michael Bell

Question:

6 Mr. Bell asked the Minister for Public Enterprise the plans she has to ensure that the current European Commission proposal to speed up liberalisation in the postal services will not result in a limitation of postal service in the less populated areas here; and if she will make a statement on the matter. [22679/00]

The European Commission has recently published proposals to amend the 1997 EU Postal Directive. These include proposals to reduce the maximum tariff and weight parameters of the reserved area within which the universal service provider in each member state, An Post in the case of Ireland, has exclusive rights. I should stress that these proposals relate solely to the letter post service. They do not have any implications for the services provided by the post office network.

The purpose of the reserved area is to guarantee the provision of a universal service of a specified standard to all users, whether in rural or urban areas, throughout the State.

The Government is in favour of the gradual but controlled liberalisation of the Irish postal market. In my examination of the Commission's most recent proposals in this regard, my primary concern will be to ensure a continuing commitment to a uniform service for all users. My understanding, from being at meetings in Brussels, is that there is no intention at EU level to depart from this principle.

Would the Minister agree that the reduced weight parameters effectively limit the reserved universal area? Is that not bound to have repercussions for the universal service, particularly to sparsely populated and peripheral areas?

As I said, there is no proposal to remove the legal requirement that users enjoy the right to a universal service and An Post has been nominated as the universal provider. A possible reduction in the market share – it is reducing to 150 grammes, as the Deputy will be aware, with controlled liberalisation – will not remove the obligation on the company to provide a universal service. That remains the position.

What there is great worry and concern about, which is a matter at which the EU must look, is the provision of the social security entitlements through the network. The Government, like previous Governments, took a decision that that should remain with An Post and that decision is being challenged at EU level by another service operator. I understand that the advice of the then Attorney General has been reinforced by the pending judgment in Europe on that matter.

(Mayo): In addition to the universal service guarantee, will the Minister also take an interest in the type of service involved? Recently a properly addressed letter posted on 2 October was delivered to me on 7 October, five days later, and it did not come a thousand miles but less than 30 miles as it was sent in my constituency.

Does the Minister appreciate that many people had their doubts and anxieties about the Government's intentions regarding An Post confirmed by the infamous An Post viability plan, which was subsequently withdrawn, and by, for example, the attempt without consultation to impose by stealth post boxes at the head of rural lanes, where people living on their own had to travel a quarter mile or in some cases a half-mile just to collect their mail, and also through the most recent blueprint, Transformation through Partnership in An Post, which is shedding jobs in many smaller offices and centralising them in larger provincial locations? What is the Minister view in that regard?

I thought the idea to provide post boxes at the head of roads was misplaced. That was a long while ago and it was never proceeded with after it was proposed initially. The warmth of someone calling is far different than going a quarter of a mile or a half a mile up the road to a box. People may say that is just being soft or sentimental, but it is true.

I understand they are working on the service. Everybody in this House would have experience of letters arriving late. An Post tells me that over 90% of deliveries are made the next day.

A considerable amount of my post comes from the other 10%.

The Deputy is not the only one.

Two days minimum.

I understand they are working on it.

The recent plan worked out between the management and trade unions clearly has downsides as well as upsides to it. They are working through it.

In the context of the importance of a postal service to rural areas, can the Minister assure the House that the Commission's May 2000 proposals will not result in either an increase in service cost in isolated areas or a reduction in the frequency of the service? I understand, for instance, that in Sweden they reduced the service to once a week. Can the Minister assure us that that is not what will emerge if this proposal is enacted here?

I did not know about the position in Sweden but one might as well not have a once a week service. It would be ridiculous. In so far as I will be dealing with the matter, I can assure the House that the proposals of May 2000 will not have that effect on the Irish postal system.

We await, as I said, the European view on the social security issues and until we get the final view, we cannot be truly sure what they will say about the way one will receive entitlements at each post office, which is a huge part of the post offices' business. This is not just the policy of this Government. Previous Governments have also been committed to retaining the post office network as it is essential to both urban and rural life.

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