Oireachtas Joint and Select Committees

Wednesday, 7 November 2012

Joint Oireachtas Committee on Transport and Communications

Postal Strategy Statement: Discussion with ComReg

10:05 am

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein) | Oireachtas source

I thank the delegates for their presentation. However, like Deputy Noel Harrington, I am still unclear on several fairly basic points. I do not know, for example, how many people are employed by ComReg and what its annual budget is. I understand its costs are met by service providers. How many providers are there and what is the range of contributions received? How much has ComReg spent on external expertise in 2012?

I do not know whether the problem is with ComReg itself or with the regulations, but it is extraordinary that nowhere in its mandate for the regulation of postal services does it talk about value for money for taxpayers. There is reference to value for money for customers but not for taxpayers. In respect of ComReg's function to facilitate competition within the market, what is the line between facilitation and promotion? Given that the performance indicators ComReg uses to monitor postal services are key to any future decisions impacting those services, will the delegates elaborate on them? I understand PricewaterhouseCoopers does an annual performance review of An Post and that its indicators are consistently 3% higher than those shown by ComReg. We need to know what indicators the regulator is using and whether they are made known to all of the postal agencies.

I am particularly interested in ComReg's recent decision to appeal a judgment of the High Court to the Supreme Court. As I understand it, An Post and not ComReg will have to bear the legal costs associated with this matter. In a context where An Post is set to lose €27 million in 2012, I find it difficult to understand how this decision of the regulator, having already fined An Post €12 million, will help the company to fulfil its remit of delivering post to customers within this island and beyond. If the High Court found that the office I ran was working beyond its mandate and straying into an area in which I had no expertise, I would only run to the Supreme Court if, as in this instance, I knew I would not have to meet the ensuing costs myself. It is extraordinary that ComReg has made the decision to appeal this matter instead of finding some way, through mediation, discussion and negotiation, to resolve it without jeopardising the very industry the office was established to protect and promote.

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