Joe O'Reilly (Cavan-Monaghan, Fine Gael)

I consider this Bill to be of critical importance to the people I represent and the people of this country. I did not accidentally select this matter to make my maiden speech in this House, because I consider this to be a crucial Bill and one we cannot let pass without active participation by as many Members as possible.

Since the EU directive on postal services came into effect on January 2011, we are confronted with the reality that there is to be a liberalisation of postal services and that there is no longer an exclusive monopoly for An Post. That is the backdrop to which this Bill is being introduced and it is an unavoidable reality. However, it is important that we use the Bill to build in the maximum safeguards that the directive allows, and that we protect the universal service obligation, the workers, the quality and the cost of the service.

An Post currently employs 10,000 people, who deliver 2.5 million items every day. They have a record of 87% next-day delivery. That is a huge achievement and is the position from which it is beginning. It is a strong position, but it is not invulnerable to unregulated and uncontrolled competition.

An Post has four hub centres around the country from which it delivers the post. Those four centres are the crucial arteries of the postal service and I believe that we should enshrine it in the Bill that nobody can enter the market at a lower point than those four hub centres. In simple terms, I seek to prevent the situation whereby a private operator could come and cherry pick a densely populated area, use the An Post infrastructure to deliver letters at a cheap rate within that densely populated area and not have any responsibility beyond that. Prospective competitors should not be allowed to enter the market below the level of the hub centre. It is crucial because it prevents distorted competition which will undermine the universal service obligation and next-day delivery. The universal service obligation essentially means that every home on every working day can expect to have post delivered at a competitive cost without exclusion, without distinction and without any privilege built in. It is vital that the universal service obligation is preserved for that reason. A total of €100 million was recently invested in an automated system in An Post's four hub centres, and that cannot be undermined by private sector companies coming in below that level.

Under the initial proposition of the Bill, An Post has the universal service obligation remit for seven years. It has an exclusive remit to deliver the post all over the country for seven years. That may well be too short a period, and I am encouraged that in the Minister's comprehensive Second Stage speech today, he said that he was looking at that period with a possible view to extending it. ComReg can decide under the Bill whether An Post remains the universal service provider after seven years, or it can decide to designate another universal service provider, or it can decide that none is required. That might be too loose. In respect of strategic planning and investment and the risk of uncontrolled competition, the period needs review. I hope the Minister will do that and I am encouraged by his remarks about this on Second Stage.

All international analysis and consultancies suggest that Ireland, due to its population base and the nature of the country, does not have the potential for more than one universal service provider. International studies suggest that we may not have rampant competition in this country, but it is important that we do not allow for a situation where that would be the case to the detriment of next-day delivery.

The Minister made the point that the 2002 legislation establishing ComReg allows him or a given Minister to intervene in strategic planning and to give strategic direction. I agree with that, but I am anxious that the Minister would consider further ministerial control of the process at all points. That is crucial. We should not let this opportunity pass without saying that our postmen and women have done an excellent job right across the country. They have provided an extraordinary social service and have been an extraordinary link to ordinary people in isolated rural communities. They are often the only point of human contact for people in the day. They provided an entire network of message delivery and support for people, and they have often gone way beyond their brief. We cannot lose that. No situation should be allowed to arise whereby people would come to collect their post at a designated centre, thus eliminating the personal delivery to each home on a given day. People in more isolated areas should not be expected to come to a centre to collect their post. We cannot under estimate what a crucial part of the fabric of our society the traditional postal service has been, and how vital it is to maintain. While accepting the EU directive, it is vital to build in the kind of safeguards that will preserve it and prevent its erosion in any shape or form.

I am happy the Minister is committed to examining the seven-year term and considering ministerial intervention, albeit while not micro-managing. Nobody expects the Minister to micro-manage An Post but he should have the capacity to control untrammelled competition. I am anxious that we examine the hub centre issue and entry below that point. I am also anxious to ensure that the legislation protects what we have and what is good in our postal service. I accept the reality, value and merit of introducing a postcode system, which is a necessary part of a modern infrastructure, but it cannot be introduced in a way that will affect universal delivery of a postal service to every house every day.

An Post has achieved a great deal and that should be recognised. It needs to build and diversify on that. It was right that the Minister said that in the event of An Post needing subsidisation, although we will be working hard to prevent that, it would be provided to ensure that it would continue to meet the universal service obligation.

As in the case of the importance of the provision of a transport system for old people, the postal service is a crucial part of our national network and must be preserved.

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