Noel Dempsey (Meath, Fianna Fail)

An Post operates within a regulatory framework as enshrined in EU and Irish law and therefore, the universal service obligation, which includes nationwide postal delivery requirements, is a statutory requirement for An Post as the designated universal service provider. To assist the company in meeting this obligation, it has a legal monopoly on all mail items weighing 50 g or less until January 2009.

Compliance with regulatory and competition rules is a matter for the board and management of An Post. Furthermore, ComReg, as the national regulatory authority, is required to monitor An Post's adherence to postal regulations. I have not given any recent directions to the regulator or the company in the above regard.

I believe there will continue to be a key national role for An Post in the delivery of mails and parcels. However, over the coming years, competition can be expected to increase in these sectors, whether from the privately owned express sector, from the large European public operators now looking for international business or from electronic substitution.

Liberalisation of the mail market in Ireland has already commenced and the second postal directive proposes that the postal sector fully liberalise across the EU on 1 January 2009 subject to political agreement which, if achieved, would open up the letter post area to full competition.

Issues that will be important for Ireland in the context of a fully liberalised market will include the protection of the universal service, ensuring that Irish citizens continue to receive a broad suite of postal services and the continued viability of An Post in the face of open competition.

The development of the postal market requires the availability of competitive, high quality products. The current level of market opening has introduced new players with offerings that meet consumer needs and further market opening will provide further opportunities for new and existing players. The development of further competition allied with a modernised and customer focused An Post will provide the basis for the further development of the postal sector here.

As regards the post office network, the precise number of post offices is a matter, in the first instance, for the board and management of the company. However, the Government and the board of An Post are committed to the objective of securing and maintaining the largest, most economically sustainable nationwide post office network possible. In line with this objective and with the need for the company to leverage its competitive advantages, I asked the company to ensure that any strategy for the development of the company should ensure the long-term viability of the post office network.

It was to this end that the Government recently gave its approval for An Post to enter into a joint venture agreement with the Belgian bank, Fortis, to set up a retail banking business. This will entail the provision of a range of financial services operated through the post office branch network, using the An Post brand and other An Post assets. Key to the Government approval of this joint venture was that it not only offers a real opportunity for the growth and development of An Post and the post office network but it will, in time, greatly benefit the income streams of postmasters.

See this speech in context