Mr. Steve Fitzpatrick:

I thank the committee for inviting me to today's meeting. I have the happy task of representing 8,500 postal workers who are the public face of the post office. It has been made clear in every survey that has been conducted over the years that postal workers are seen as the most trusted workers in the country. This is particularly the case in provincial Ireland, where many people do not have contact with anybody else. Like many workers throughout the country, the staff of the post office endured a pay freeze for eight years. The collapse in mail volumes during that time enabled us to reduce the number of full-time equivalent staff by almost 1,800 without any recourse to industrial action. That was not something I was happy to see, but we had to deal with it. We also dealt with the pension crash and helped to rescue the An Post pension fund.

Half of the recent pay increase, which was mentioned earlier in this meeting, was paid for by the cuts made by staff. It is interesting to note that the Labour Court said that the shareholder, the management and the staff of An Post had responsibility for pay movement in the company. It is noteworthy that this was included in the Labour Court recommendation. The quality of the service provided by An Post has improved from 64% next-day delivery during the administration prior to the most recent administration to 94% next-day delivery at present. There is no doubt that this is one of the best services not just in Europe but in the world. The post office has not received any State subvention since it became a semi-State body in 1984 even though it was promised €55 million under legislation that was introduced at that time. This money was never paid.

It is a considerable worry to all of our members that despite the ongoing cost reductions, the pay freeze and all the efforts we have made, the company remains in a precarious financial position. The pricing strategy that has been followed in the industry over the last 12 to 15 years has played a large part in the maintenance of this precarious financial position. If modest price increases had been sanctioned over that period, perhaps to bring average prices in line with other European countries, we would not be having this debate here today and the company's financial position would not be of concern. I listened with interest to the ComReg view of the world, but the reality is that within its remit it is supposed to take account of pay movement and other issues under the postal services legislation.

It is interesting to track the collapse in mail volumes. It started with the economic collapse. At that time, mail volumes reflected economic activity. The approach taken at that time hastened the move towards electronic substitution. Other things are going on each day. Every banking utility in the country incentivises people to stop using mail. The reality is that elderly people and people in technological blackspots are subsidising those who are able to pay lower prices to service providers. Many companies reduce the bills of those who do not use the services of the post office while maintaining higher bills for those who have no option but to use them.

The decision to allow these utilities and banks to force customers to opt-in rather than opt-out has hastened the demise of the postal business.

On employment, a delivery office in a town is the equivalent of a small factory. It helps to create economic activity. That should never be misunderstood. An Post is probably the single biggest employer in the State, with the biggest fleet and reach and paying the State significant amounts in employee and consumption taxes.

The social aspect is one of the main features that seems to be missing in society today. What kind of society do we want? It impacts on the postal network and post offices. Post offices have a contract with the Department of Social Protection, under which they must encourage social welfare recipients to go online. They would lose elements of the contract if they did not push the online piece. The contract will do away with post offices.

Like most people, we are impressed by the Bobby Kerr report and believe something drastic needs to be done. Every town should have a centre where people can congregate and do their business electronically work if they cannot do so nearer home so as not to denude rural societies. I do not share completely the view that it is also a city issue. With the availability of public transport, one has some hope of gaining access in a city, but we do not have that option around the country. It is largely about the kind of society we want to have. Obviously, it is aksik about providing employment within that role.

I thank the committee for its consideration. In dealing with the terrible difficulties to do with finance and property one might consider we have citizens and workers who are also of interest to us.