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Dáil Éireann debate -
Tuesday, 27 Nov 2001

Vol. 545 No. 1

Written Answers. - Postal Services.

John V. Farrelly

Question:

46 Mr. Farrelly asked the Minister for Public Enterprise the consequences for An Post of the EU decision that postal services are to be liberalised over an eight year period; and if she will make a statement on the matter. [29693/01]

Brendan Howlin

Question:

88 Mr. Howlin asked the Minister for Public Enterprise if her attention has been drawn to the concerns of An Post regarding the EU proposals to introduce full competition for letters and parcels weighing more than 100 grams by the year 2003; and if she will make a statement on the matter. [29661/01]

I propose to take Questions Nos. 46 and 88 together.

A draft directive amending Directive 97/67EC with regard to the further opening to competition of community postal services is currently under discussion at the European Parliament. The main measures which have yet to be ratified by the European Parliament, are: a reduction of the weight and price limits in the reserved area to 100 grams in 2003 and 50 grams in 2006 with corresponding price limits of three and two and a half times the standard tariff; outgoing cross-border mail may continue to be reserved within the same weight and price limits to the extent necessary to ensure the provision of universal services; a study is to be completed by the European Commission on the impact of full liberalisation on the universal service in all member states, leading to a report to the European Parliament and the Council of Ministers by the end of 2006; and a proposal confirming, if appropriate, the date of 2009 for full liberalisation of the market or determining any other step in the light of the study's conclusions.

There is no firm date as yet for these matters to return to the Council after consideration by the European Parliament. These measures have no implications for the provision of postal services in rural areas. An Post, as the designated universal service provider, will continue to be obliged to provide a nationwide service at a common tariff. Clearly, further liberalisation of the letter post market will have an impact on An Post's core business. However, it will also present opportunities. I am confident that An Post, which in terms of price and the quality of the service it provides remains competitively positioned in the European Union, will meet the challenge of an increasingly liberalised market.

Question No. 47 answered with Question No. 38.
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