Denis Naughten
Question:89 Mr. Naughten asked the Minister for Communications, Marine and Natural Resources the action he is taking to develop the postal service and the market; and if he will make a statement on the matter. [31172/04]
View answerTuesday, 30 November 2004
Questions (60, 61, 62)
Enda Kenny
Question:91 Mr. Kenny asked the Minister for Communications, Marine and Natural Resources his preferred options for the future of An Post, having particular regard to the need for the continuation of existing and extra services; and if he will make a statement on the matter. [31184/04]
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Jimmy Deenihan
Question:123 Mr. Deenihan asked the Minister for Communications, Marine and Natural Resources the extent to which he has inquired into the alternative or enhanced services compatible with those currently being provided by An Post with particular reference to the need to ensure its continuity and viability in the future; and if he will make a statement on the matter. [31215/04]
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I propose to take Questions Nos. 89, 91 and 123 together.
It would be useful if I outline briefly the market environment in which postal business is conducted. The postal market has changed significantly in recent years with liberalisation of the European postal market and with postal operators moving from national into international markets. This has impacted on this country with partial liberalisation of the postal market on foot of EU directives and with the presence of a number of international operators in the Irish market.
The parcels market in Ireland is now fully liberalised and operators are providing high quality services. The market includes some of the biggest postal operators in the world providing international reach to Irish business. Our strong economic fundamentals and multinational presence make Ireland attractive for the big logistics firms. The competitive nature of the market with a substantial number of local and international operators provides a range of services which largely meet consumer and business needs.
The letters market has been partially liberalised, with outbound international mail fully liberalised since the beginning of 2004. Further EU driven liberalisation proposals are likely to come on stream in the years ahead and strong international players, currently operating in the parcels sector, are likely to look for opportunities in the letter post area. Furthermore, mail is facing a strong challenge from electronic substitution.
It is essential that An Post now capitalise on its assets, one of which is their nationwide delivery network for letters and parcels. The volume of letterpost per person in Ireland is below the EU average. This shows that there is definite room for growth in the sector especially in niche areas of marketing and direct mail.
The key fundamental for An Post to ensure viability is the need to return the company to financial stability. In this regard, the management and unions of An Post have been engaged in an intensive negotiating process, with the assistance of the State's industrial relations machinery, in order to reach agreement on necessary restructuring measures for sorting and mail delivery.
The post office network has been the subject of a number of studies and reviews in recent years, many of the recommendations arising from these reviews have been implemented, with particular regard to winning new business, including extra banking business and new utility business. The post office network, at present, has a high footfall, a recognised brand name and a countrywide retail network. Clearly, there is scope to build on the range of services already provided and to obtain new business for the network building on existing strengths. The network is geared towards the future with the majority of offices now computerised and computerisation has brought benefits with new banking business obtained from AIB and extra utility business.
The post office enjoys a strong relationship with the sections of the population who are currently unbanked, including social welfare clients. With the roll-out of e-government services, the post office network is ideally placed to capitalise on opportunities arising in this space, especially in the area of e-payments.
In the development of any new service, the key focus for An Post will be to offer a range of quality products and services which meet consumer demands. An Post's future will only be guaranteed by adapting to the increasingly competitive environment in which it operates.