Vol. 571 No. 4
119 Mr. Kehoe asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn by An Post to the practice of Irish banks using the Royal Mail posting system; if so, the action he will be taking; and if he will make a statement on the matter. [22104/03]
The postal sector, as a result of European Union directives, has been partially liberalised. All operators are free to provide postal services where the weight limit is above 100 grammes and the price limit is three times the standard tariff. The reserved area for An Post is below these limits.
In recognition of the universal service obligations imposed on An Post, it has a reserved area of the postal market. Other operators, irrespective of where they are located, are not allowed to provide services which form part of the reserved services area.
The statutory regulations underpinning the reserved area are set out in the European Communities (Postal Services) Regulations 2002, which also entrust to the Commission for Communications Regulation responsibility for ensuring that the reserved area is restricted to An Post. I have no statutory function in this matter.
I was under the impression that An Post is under the remit of the Minister's Department. Do any legal implications arise as a result of this? The Minister will be aware that First Active is using the Royal Mail postal system because it is saving €20,000 on 200,000 letters. Does the Minister agree with First Active's practice of e-mailing statements to England and using the Royal Mail to post the statements back to Ireland to save €20,000? Has the Minister taken advice to find out if this is legal? Is there not an international agreement between the Royal Mail and An Post to stop this? Has the Minister contacted ComReg about this? Is there not a licensing system between An Post and the Royal Mail?
While I have overall general responsibility for policy in this area, the implementation of policy is up to the Commission for Communications Regulation. On the specific instances referred to, I understand through contact with An Post and ComReg that An Post is pursuing legal action under section 4 of the Evasion of Postage Act 1937 which will require First Active to furnish details of its mailing by 8 October. An Post will be use every avenue possible to recover the loss of postage which might arise.
This area is reserved to An Post under the existing rules, but it is the case that as the market opens in the coming years there will be competition in this area and other operators will be able to enter it. Until that is the case, it remains the reserve of An Post. Postal services for weights above 100 grammes are open to competition and the reserved list for An Post is for postal services below that weight.
Has ComReg not decided that from 1 January all cross-Border mail will be open to competition?
That is subject to further discussion with ComReg and no decision has been made. The matter referred to by the Deputy would not have implications for the complaint raised here.
We know that all banking institutions are making profits of millions of euro from those who use their services. Does the Minister agree that they should be spending that money in An Post instead of using the Royal Mail? Are they breaking any rules by doing this? The Minister has responsibility for An Post and he should be able to spell out the answer today. I hope the Minister has been in contact with An Post about this matter.
While I have overall responsibility for general policy, it is up to ComReg and any complainant to prosecute any alleged infringements of the existing rules. An Post is pursuing legal action to ascertain the facts in this case and it is the intention to prosecute this position to ensure there is no loss of postage due.
What is the Minister's view of the use by banks of the Royal Mail system, given that they are making money here?
I expect all institutions to comply with the law of the land.
Can the Minister explain why An Post is not providing a business service in County Monaghan? Can he blame customers who cross the Border to use the Royal Mail if An Post itself will not provide a service?
It is very wrong for the Deputy to say that An Post is not providing a business service in Monaghan. My information – and I expect it is no different in my county than in the Deputy's – is that An Post is providing a service.
It is the same in four counties.
The Deputy might like to reflect on the statement he has made, given that he has cast fairly unsavoury aspersions against everyone who works in An Post in County Monaghan.
I take exception to that. The Minister knows what is happening.
