Billy Timmins
Question:7 Mr. Timmins asked the Minister for Public Enterprise the position regarding the liberalisation of the postal services; and if she will make a statement on the matter. [10554/02]
Other Questions. - Postal Services.
Brendan Howlin
Question:15 Mr. Howlin asked the Minister for Public Enterprise the position at EU level regarding the liberalisation of the postal service; and if she will make a statement on the matter. [10494/02]
I propose to take Questions Nos. 7 and 15 together.
The European Parliament recently concluded discussions on a draft directive amending Directive 97/67EC with regard to the further opening to competition of community postal services. The weight limits in the reserved area will be reduced to 100g in 2003 and 50g in 2006 with corresponding price limits of three and two and a half times the standard tariff. Outgoing international 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 Commission on the impact of full liberalisation on the universal service in member states, leading to a report to the European Parliament and Council of Ministers by the end of 2006 and a proposal confirming the date of 2009 for full liberalisation of the market, if appropriate, or determining any other step in the light of the conclusions of the study. There is no firm date as yet for these matters to return to the Council after consideration by the Parliament. I will not finish the reply as I fear I will be halted by the Acting Chairman.
Acting Chairman
The Minister has ample time.
I would appreciate it if the Chair would give me a secret signal when I am running out of time.
Does the Minister have more to say on the matter?
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. While it is clear that further liberalisation of the letter post market will have an impact on An Post's core business, it will also present opportunities. I am confident that An Post, which remains competitively positioned in the European Union in terms of price and quality of service, will meet the challenge of an increasingly liberalised market. The Deputy is aware that a significant part of the postal sector is liberalised. An Post competes with reasonable success in this part of the market. A significant number of private operators in the courier and express carrier sector, which are in competition with An Post, are important in their own right in the provision of critical services to the economy.
Acting Chairman
I suggest the Minister should study the up to date Standing Orders of the House.
I will not take umbrage with the Chair.
On a point of order, six minutes are allowed per question, including priority questions. We started at 3.30 p.m. and we had five priority questions. This should have taken us up to 4 p.m, but the Chair ended priority questions just after 3.55 p.m.
Acting Chairman
One of them was not asked.
It was.
Deputy Owen was not here to ask her question.
She did not have to be here.
She did.
Mr. Stagg: No.
Mr. Higgins (Mayo): Has the Minister discussed with An Post the consequences of the full liberalisation of the postal market? Is the recent announcement by An Post that it plans to lay off 1,100 or 1,200 of its postal staff, without adequate consultation with the Communications Workers' Union of Ireland, related to liberalisation? What deadline or target date has been set for full liberalisation?
An Post made clear that the proposed staff severances were to be achieved by the end of 2003, which is 21 months away, and were to be of a voluntary nature. The European Commission's study into the impact of full liberalisation on the universal service in member states is to be completed by the end of 2006, which is over four years from now. If it is appropriate, a proposal will be made confirming 2009 as the date of full liberalisation of the market or determining any other step in light of the conclusions of the Commission study. To answer Deputy Higgins's question, the Council of Ministers will receive a report from the European Parliament by 2006 and it is proposed that there will be full liberalisation by 2009.
I am not sure if further liberalisation of the Irish postal market is possible and I ask the Minister to tell the House what is envisaged. Couriers deliver all types of messages and people communicate via e-mail, so I do not see what more can be done. I read that in terms of units of delivery, e-mails outstripped ordinary post in the United Kingdom last week. Will the Minister guarantee that the system of equal charges for the delivery of an item of post, regardless of the part of the country in which one lives, will remain? Will an equal level of service be maintained in all areas? Is it a policy objective of the Government to ensure that guaranteed next day delivery continues?
It is a policy of the Government that An Post should retain its designation as Ireland's universal service provider. An Post does not guarantee next day delivery in all areas, although it strives for such a service where possible. The Government favours a gradual and controlled movement towards the liberalisation of the postal market, subject to certain safeguards in relation to the universal service, and its current relatively modest proposals reflect that view. Full liberalisation is not envisaged before 2009. I understand the mayhem in the United Kingdom at present has been caused by a declaration of liberalisation five years too early.
Does the Minister intend to licence couriers to ensure the safety of their mail?
I do not have the relevant information to hand, but I will reply as soon as possible.