Seán Kyne (Galway West, Fine Gael) | Oireachtas source

Section 28(5) is the subject of Deputy Dooley's amendment. I want to address the inclusion of the phrase "may fail".

While I understand the wish to see the powers of the regulator strengthened, widening their scope to include the determination that the universal service provider may fail is too subjective. It is difficult to see how ComReg could judge that a universal service provider may fail in its obligations to comply with the tariff principles. In considering this amendment, the Minister consulted ComReg, which agreed on this point.

The Minister is cognisant of the impact that this measure might have on consumers in the SME sector. In this regard, he has issued a policy direction to An Post instructing that price increases introduced following the repeal of the price cap mechanism must be subject to prior consultation with ComReg and have due regard to the tariff principles set out in section 28 of the 2011 Act as well as the interests of personal and SME users of the postal services.

Regarding the substitution of "shall" for "may", it is not appropriate to make the issuing of a direction obligatory. A direction referred to in section 28(5) is an enforcement mechanism that may be used by ComReg and detailed procedures around the issuing of such directions are provided for in section 51 of the 2011 Act. There may be some instances under section 28(5) in which a normal direction of this nature is not appropriate or necessary. Therefore, it is important that ComReg retain discretion. For these reasons, I am unable to accept the proposed amendments.