Noel Dempsey (Meath, Fianna Fail)

The European Commission's proposal for a third postal directive envisages that the postal sector across the EU will be fully liberalised on 1 January 2009, subject to political agreement. The proposal is based on a Commission study on the impact on the universal service of the full accomplishment of a liberalised postal market. The study concludes that full market opening is achievable in all member states, including Ireland. It also concludes that liberalisation has the potential to create employment in the postal sector. The focus of the debate in Europe has now moved to the European Parliament and Council.

Liberalisation will undoubtedly encourage new entrants to the market. Other sectors that have liberalised as a result of developments at EU level, such as the telecommunications market, have provided greater consumer choice and achieved reduced prices, and I anticipate that liberalisation of the postal market will also have positive effects.

Ireland has fully implemented European Directives 97/67/EC and 2002/39/EC, which set out the requirements for member states regarding the provision of high-quality postal services and liberalisation of their postal networks. Under the directives, each member state is obliged to provide a universal service, whereby a minimum level of service must be provided. I understand that there are no proposals to amend those provisions in the third directive.

I am anxious to ensure the continued operation of a top-quality universal service and the highest levels of customer service, and Ireland's position on the proposals will reflect that view. No decision has yet been made on how provision of the universal service obligation should be financed in the absence of a reserved area. My departmental officials and I are currently considering various options in that regard. The proposed postal directive will be subject to Oireachtas scrutiny.

I believe that there will continue to be a key national role for An Post in delivering mail and parcels. However, over the coming years, competition can be expected to increase in these sectors, from the privately owned express sector, from large European public operators now looking for international business and from electronic substitution. Therefore, to deal with the challenges facing An Post in the coming years, the company's management, in conjunction with the trade unions, must deliver on restructuring agreements, particularly for mail.

The postal sector in Ireland needs An Post to be competitive and efficient. I believe that liberalisation and the expected increase in competition will ultimately be good for both An Post and consumers and that the company can continue to be a significant and strong player in the market after liberalisation.

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