Luke Flanagan (Roscommon-South Leitrim, Independent)

I am very concerned that this Bill, which is being introduced as a result of EU Directive 2008/6 on the full accomplishment of the internal market of community postal services, will seriously damage An Post's viability at a time of falling letter volumes and its continued obligation to provide loss-making services. The provision of postal services has been historically based upon a universal service obligation which legally obliged An Post, in our case, to deliver and collect mail for the same price regardless of location.

The same price goes anywhere principle was supported by a monopoly or reserved area whereby An Post was the only operator who could carry and deliver mail below a certain weight limit, which in recent times was below 55 g. This enabled An Post to cross-subsidise utilising profitable urban groups to carry the burden of loss-making rural routes. In simple terms, a letter posted in the GPO for 55 cent and delivered in Ballsbridge makes money but a letter posted in the GPO and delivered to Trean or Ballinamore loses money.

On the universal service obligation, its funding in a liberalised market is a major issue which has not been resolved anywhere. The Bill suggests a compensation fund into which licensed operators would pay to fund the universal service obligation. It has not worked in any other country and will not work here. The programme for Government includes an option for State aid in a worst-case scenario, which is welcome. However, the Bill should be framed to ensure An Post is supported in continuing to provide the universal service obligation from its own resources, supported by a viable market share.

Cherry picking or cream skimming occurs when competitors enter the market and undercut An Post unprofitable routes. Competitors will not compete on loss-making services but An Post will still have the universal service obligation. If it loses market share on profitable routes it can cross-subsidise and will in a short time go bust. The only way to open up the market and fund the universal service obligation is to impose the same obligation on all operators to deliver everywhere at the same price as An Post does. This is what has happened in Finland. The Bill facilitates cherry picking, unfortunately, and I must oppose it otherwise An Post will not be able to compete.

Downstream access happens when competitors compete for customer postings at a lower rate than An Post and then insert them into An Post's network for delivery. The downside is that An Post could end up receiving mail at delivery office level, having lost the postage, and be forced to deliver it at a loss. An Post has invested in excess of €40 million in four mail centres around the country which will be redundant if downstream access is allowed below a certain level. In the UK the Royal Mail is losing money because it is delivering mail for competitors at a rate set by the regulator which does not cover the cost of delivery. This Bill facilitates downstream access. The Bill must prevent it below automated mail centre level, otherwise the investment will be redundant.

The Bill gives ComReg unfettered powers to decide on almost every matter to do with the mail business, regardless of the social implications. Experience elsewhere shows that regulators have facilitated competition by curbing the previous monopoly providers' share by allowing cherry picking, downstream access and price caps. The UK example shows that regulatory policy has been a contributory factor in the precarious position of Royal Mail and the British Government is currently considering how to address this. The legislation should ensure that the regulator is answerable to the Minister and the Oireachtas on key matters, such as the USO which has national implications.

On employment issues, liberalisation in Germany has resulted in the loss of 21,000 full-time and 12,000 part-time jobs in Deutsche Post, with competitor company employees being eligible for social welfare support. In Holland, full-time jobs have been reduced from 40,000 to 24,000.

The recycle 16 directive permits member states to provide for social considerations to be included in the legislation. The legislation should include recycle 16 to protect employment standards. An Post employs almost 10,000 right across the country. By any standards, it is a major employer in every city, town and village in the State. Its commitment to rural areas is commendable. In fact, it is soon opening a brand new sorting office in my home town of Castlerea. That vote of confidence in the community deserves our support in shaping this Bill so that the national postal service continues to provide a good service and good employment.

I am disappointed by the lack of rural TDs in here today to fight for and discuss this issue. If we go ahead with what is planned here, ten years down the line those same TDs will be telling their constituents that they are only getting post on two days in the area because they had no choice. They have a choice to fight it here and now, but where are they? They are gone, at a funeral maybe. What are they doing?

The most telling statement made here today on anything was made by Deputy Ó Cuív. He stated, in this regard, that he accepts we have no choice. I say his grandfather would be turning in his grave after fighting for Irish freedom to hear that his party, along with all the other main political parties, seems to accept that we have no choice. It was the same with the turf-cutting ban. Apparently, we have no choice. When it comes to Europe we swallow everything — hook, line and sinker. Other European countries take what is good for them and argue about and stop what is happening that is bad for them.

Earlier it was mentioned by a Sinn Féin Deputy that An Post provides more than just a service which delivers the mail. My uncle worked in An Post for 50 years and my aunt worked there for 49 years, and I can tell the Minister that they provided more of a service than merely delivering post and handing out stamps. On many occasions they provided the only bit of company that anyone would have had for possibly a week. They saw situations where a cheque should not be delivered on a certain day because a certain partner might have been drinking too much and held it back for a couple of days until, maybe, the wife or husband was there alone — not something that is in the job remit. I can guarantee that when the company is privatised down the line, if the Government gets away with this, none of those services will be provided by staff. It will be rush in, rush out or, possibly, put it in a box at the end of the road and down the line there will be a newspaper headline stating, "Old person found dead — undiscovered for five days because no-one called around". I am not saying that should be the job of a postman or postwoman but in a world where one looks at matters a little more holistically, it is a good idea that he or she would do that.

From what Deputy Ó Cuív stated, obviously, Ireland is no longer independent, Ireland is finished as a State and we must accept this. Apologies to Deputy Ó Cuív, but I am on his grandad's side on this one. I believe we have a choice if we fight for a choice and for our right to make our own decisions. The last time I looked at my passport I was an Irish citizen, not a European citizen first. I will always be an Irish citizen first. I have stated here previously that I have lived in many European countries and I am not against Europe. I have no problem with the European people. In fact, I have great time for them because if they had this sort of stuff put before them or stuff such as the ban on turf-cutting, they would fight and win on it. It is a shame we do not have enough Members in here who are willing to fight it.

It is a shame we do not have enough Members in here. There were more members in front of me in Roscommon County Council. I do not get it. Is there no quorum required here? It is ridiculous.

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