Dáil Éireann Debate, Wednesday - 12 May 2004
36 Mr. Broughan asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the call from An Post staff at the recent Communications Workers’ Union conference in Galway, for an inquiry into the previous mismanagement of the State postal service; if he has plans to recommend such an inquiry; and if he will make a statement on the matter. [13876/04]
Amharc ar fhreagraI am aware of comments made at the recent conference of the Communications Workers' Union in Galway. In light of the current financial difficulties faced by An Post, I am convinced the most effective means of ensuring its long-term future is to focus on the critical challenges it faces rather than to concentrate on past performance and management. I trust this view is shared by all stake holders in An Post. Deputies are aware that the Joint Committee on Communications, Marine and Natural Resources has examined An Post's problems on two occasions since the start of 2003. Unlike the management of An Post, the Communications Workers' Union chose to not attend the most recent meeting of the joint committee devoted to examining the company's financial situation, which was held earlier this year. I do not propose to call for an Oireachtas inquiry into the matter, as to do so would be a matter for the Oireachtas itself.
I would like to return briefly to the issue of alternative energy sources before I ask supplementary questions about the postal service. We tried to raise the grid code and other issues relating to wind generation, but we were not allowed to do so. Despite the Minister's comments, such policies are matters for the House. One could probably fuel a small generator — perhaps 2 MW — from the hot air the Minister generates on the other side of the House.
Does the Minister agree that the An Post workers are right to feel a deep sense of grievance about the managerial regime that existed before July 2003? The result of An Post's first loss of €7 million in 2001 was that the chief executive was rewarded with an additional €100,000 in salary and a bonus of €21,000. Is it not right, therefore, that workers are aggrieved?
With regard to the Minister's area of responsibility, where is the An Post strategic recovery plan? The House discussed the plan when there was a crisis about two months ago. Where does the Minister think it will go? What is his role? Does he still hold monthly meetings with the board of An Post? Does he continue to monitor closely what has happened to the company?
Does the Minister agree that the 2003 An Post report, which Deputies received a few weeks ago, makes quite frightening reading? The chief executive of An Post, Mr. Donal Curtis, said that its finances are on a knife edge and he predicted a difficult future for the company. Does the Minister share the reaction of many Deputies to the report? How does he envisage that the recovery plan will roll out? Mr. Curtis said there will be a reduction of 40% in managerial posts. He is looking for a reduction of 1,450 in staff and major changes in the sub-post office network, which provides a vital social service throughout the country. He also spoke about other services. For example, he constantly referred to the cost of delivering to rural Ireland, which many of us would have thought of as the purpose of An Post. Does the Minister expect the price of a basic postage stamp to increase significantly in the near future?
I understand that An Post will apply, if it has not already applied, to the regulator for an increase in the price of a postage stamp. My officials and I continue to meet the board of An Post almost on a weekly basis to discuss the company's precarious financial position. Although it is an independent company, my Department has to conduct financial scrutiny to ensure that its problems do not get worse. We would like to see an improvement in An Post's financial circumstances.
The Deputy also asked about the recovery strategy. Discussions with the Labour Relations Commission are ongoing. There is a deadline of Friday of this week, but I anticipate that the discussions will continue thereafter. I ask the Deputy to use his influence to get the CWU to come to the Oireachtas to make its case to the joint committee. It had the opportunity to make its case before the strike, but it chose not to do so. The management of An Post attended a meeting of the committee. We can all blame individuals and groups of individuals for what happened in the past, but we should accept the situation as it is and look forward. The Deputy has criticised a particular person, but the reality is that the situation was overseen by a board, of which four members are worker-directors, as well as a management team. Having examined the difficulties faced by An Post as part of the recovery strategy, it is clear that difficult decisions will have to be made, not only about price increases but about restructuring the organisation.
The Minister placed the Postal (Miscellaneous Provisions) Bill on the legislative programme last autumn. When does he expect that the Bill and the projected ESOP for the work force will be brought forward? Another controversial aspect of the report relates to the universal service obligation and the quality of service. The rating given to An Post for its next-day delivery of the basic postal service by its invigilators, PricewaterhouseCoopers, is far more impressive than that given to it by ComReg. ComReg has claimed that An Post has a next-day success rate of 74%, but An Post claims that the rate is 94%. Who is telling the truth about the quality of service?
We have to accept ComReg's figures because they are derived by means of a comparison with An Post's EU partners. The company's figures for next-day delivery are not as good as we were originally led to believe.
The Deputy mentioned that the legislation to provide for an ESOP is on the legislative programme, but it has not made progress because certain indicators of the commitments that were made under the agreement have not been reached. This matter is being discussed as part of the ongoing discussions between the Labour Relations Commission, the trade unions and the management of An Post. As I have said previously, the Government favours the issue of the transformation agreement, although an absolute proviso has been included on behalf of the taxpayer: the savings commitments that have been made have to be met before there is any transfer of shares. We are willing to examine these issues in the context of the restructuring of the company.
