Simon Coveney (Cork South Central, Fine Gael)

With all due respect, if the Minister were on this side of the House, he would describe that answer as waffle. Rather than answering the question, he gave the facts that everybody knows — for example, that competition will be good for the market. He said we needed to consider a number of options, but I want to know which option he favours. Competition will be not be a problem in busy cities and urban areas. An Post accepts it will have to compete with companies coming into Ireland to cherry-pick profitable areas within the postal sector. The problem is how we will pay for the universal service obligation. How can we ensure people in places like the Beara Peninsula, Connemara and north-west Donegal receive the same level of postal service as people living in Dublin 4? The reality is that we cannot expect An Post to compete on a head-to-head basis with companies in competitive areas while having to cross-subsidise loss-making in those parts of the country where the universal service obligation is more difficult to fulfil. How will we pay for it? Will we impose a levy on new entrants into the market? Will the State carry the cost by means of taxpayers' money?

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