John Browne (Wexford, Fianna Fail)

The current postal directive will expire on 31 December 2008 and it is expected any new postal directive will be adopted by 2007. As provided for in the current postal directive, a study was recently undertaken by the European Commission of the impact on the universal service of the full accomplishment of a liberalised postal market. Based on the outcome of this study, the Commission has presented a report to the European Parliament and Council, accompanied by a proposal confirming the date of 2009 for full liberalisation of the postal market. The proposed directive is being discussed by the European Council.

The Government wants a strong and vibrant An Post, delivering the highest quality postal and counter services to the public on a financially sound basis. While there has been a significant improvement in the company's financial performance in the past two years through rigorous cost control, there is no room for complacency. It is imperative that the cost savings provided for in the recovery plan are delivered upon. This point cannot be over-emphasised.

The way forward for the postal services is to ensure that we have, on the one hand, adequate competition and, on the other, no diminution of the universal service. 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.

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