Dáil Éireann díospóireacht -
Tuesday, 11 Nov 2003

Vol. 574 No. 1

Priority Questions. - Postal Services.

Thomas P. Broughan

Ceist:

115 Mr. Broughan asked the Minister for Communications, Marine and Natural Resources the position in regard to his Department's consideration of the recovery plan from An Post which he ordered the company on 4 September 2003 to produce; when he expects agreement on the plan; if he has received an indication of the extent of the job cuts being sought by the company; if he has sought or received assurances from the company that the problems experienced with Christmas post in 2002, when much mail was not delivered until after Christmas, will not be repeated in 2003; and if he will make a statement on the matter. [26422/03]

Mr. D. Ahern:

In response to my request for a recovery plan, following the announcement by An Post of substantial losses, the company submitted on 30 September a response to my letter outlining a recovery strategy.

The main components of the recovery strategy relate to cost reductions across core businesses, improved financial and operational performance, a new HR strategy and organisational structure, improved customer service standards and improved performance across core businesses. The detail of the strategy has to be negotiated with unions by the company management before it can be finalised. Finalisation of the detail of the strategy and the success, delivery and implementation of the strategy generally, is contingent on the outcome of these negotiations.

Staff reductions amounting to approximately 1,140 have been signalled by An Post since early last year. Provisional numbers from the outline recovery strategy envisage an advance on this figure. While the board, management and staff of the company have my full support and assistance and that of my Department in dealing with the difficult challenges ahead, the responsibility for designing and implementing the recovery plan ultimately rests with the company.

On the issue of Christmas post, I have written to the chairperson of An Post seeking written assurance that the problems experienced with the post last Christmas will not be repeated. Furthermore, this issue has been discussed at meetings between my Department and the company. The matter has also been brought to the attention of the Commission for Communications Regulation which has the statutory function for quality of service standards under the European Communities (Postal Services) Regulations 2002.

Mr. Broughan:

Is it not the case that the omens for the delivery of Christmas post are not good? ComReg's recent third quarter report stated that only 71% of mail is delivered the next day as against the An Post target of 94%. Does the Minister find that alarming? Does he, like myself and other Deputies, receive complaints that post from different organisations, notices in particular, arrives up to seven days late? Events are scheduled but sometimes Members only get notice of these on the day or the day after. Does the Minister not find that ominous? Does he not think he needs to do more than write a letter? Should he not meet Mr. Curtin and Mr. Donald and tell them that we do not want a repeat of last year's fiasco where a million Christmas cards were delivered in February and March with the excuse that they were too big for the machine or whatever?

We have heard reports that local sorting staff are sitting idle during the day while mail from north or south Dublin, for instance, is in transit through places like Waterford and Athlone. This seems to create a situation where we will not have next day delivery.

With regard to the recovery plan, An Post was asked to re-negotiate the Rheims agreement, or international agreements. We are, apparently, subsidising foreign operators up to €11 million per annum. Has the Minister taken any action on this? Is he aware that significant quantities of US mail are delivered in this country by private operators, who have a deal with US Mail which bypasses the An Post operation?

It is sad to hear that a large number of workers will become redundant. Given that the United Kingdom, among other countries, has its own postal regulator, Postcomm, in place, does the Minister intend to bring forward any more fundamental legislation and regulation of the Irish postal market for a fully deregulated market?

Mr. D. Ahern:

I have raised the issue of the quality of the postal service and the Christmas post at all the meetings I have had with Mr. Donal Curtin, the new chief executive. Last year, the new computer and sorting system was put in place too close to Christmas. Ultimately, An Post accepted that and accepts that the delivery of Christmas post last year left a lot to be desired. I am assured that will not happen this year. I too have experienced some difficulties with post and one important personal letter took nine days to reach Dundalk from Dublin. I raised the issue of the quality of the postal service with the chairperson, the chief executive and ComReg. I am assured that while there are some difficulties, they will be ironed out, particularly in the run up to Christmas.

On the issue of further legislation, the postal service is subject to a continuing opening of the market under EU legislation. This is the responsibility of ComReg, which is the independent regulatory authority in regard to the running of the An Post service, and it is in constant discussion with An Post regarding its current difficulties.

I accept what the Deputy stated about the possible job losses. It has been agreed with the unions and with management over recent years that there would be a downsizing of the company in exchange for productivity and for a number of special payments under Sustaining Progress. That process is ongoing. The position in An Post is, however, difficult. An Post has indicated that it wishes to get out of some of its peripheral businesses and that it will concentrate on the core business. As I stated here, my Department meets An Post officials on a weekly basis to ensure that we can give whatever co-operation is necessary, but ultimately it is a matter for the company's management and unions to work through the present difficulties.