Dáil debates

Wednesday, 13 April 2011

Communications Regulation (Postal Services) Bill 2010 [Seanad]: Second Stage (Resumed)

 

5:00 pm

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)

Yes, I am.

I welcome the opportunity to speak to this Bill and also welcome the Minister of State. The Bill provides certainty for An Post and the users of its services and meets our obligations to the European Union, as it transposes a directive which provides for the final phases of the liberation of the postal service market.

There has been much uncertainty about the collection and delivery of mail. I remember attending a huge public meeting in Galway 20 years ago at which the issue discussed was the placement of letter boxes outside houses. Many welcomed this because they were happy with the service, but then the position changed such that letter boxes were to be placed at the top of the road. Some people were even told to go to the post office to collect their post. We have moved a long way from that position, which is a good development. A constituent once told me that he liked to see his postman putting a letter in his letter box and that he would not like to go to the top of the road because he felt there might be interference with some letters. We have come a long way on this issue and now have competition in the postal service market, which is very welcome.

There is a worry that undercutting by other organisations will affect An Post in cherry-picking customers. Price increases would also be of major concern. However, it is very welcome that An Post has now been designated. We have to admire the possibility that mail might be delivered to our homes every working day. The person who brings the post in rural areas often provides stamps for those who find it hard to get to the post office. The postman is the first contact for many elderly people.

I welcome the designation of ComReg as the national regulatory authority. There will be powers for it in respect of the exact services to be provided, the gathering of information and the making of directions.

The idea of a universal postal service is very welcome. There is, however, an issue about the price cap to be imposed. I understand it is for a period of five years. That is also very important because Irish postal service users should not be exposed to significant increases in prices, as happened in other countries following the so-called liberalisation of the postal service market.

The Minister might address the financial burden on An Post. There is a reference in the programme for Government to Exchequer funding. These matters might be discussed later in the debate. It is important that there is designation because it provides certainty.

When agencies were set up in the past, Members often had problems in trying to raise issues in the House. We only have to think about the National Roads Authority and so on. There was a worry that decisions might be taken that we would not be able to question in the House. The committee system is a great help in that regard, but the Minister stated any decision made by ComReg to designate or not to designate a service would be subject to ministerial approval. That is very welcome. There was a similar issue in respect of downstream access when we debated telecommunications issues, especially the telephone system. The question of competitors having access to the network used by An Post came up during the debates on Telecom Éireann and Eircom. The question of negotiating terms and conditions is very important, as is having a role for the regulator where parties cannot agree on the outcome. ComReg will resolve disputes that cannot be resolved elsewhere.

I note there is no change to the free postage system for electoral candidates, which is certainly welcome.

Deputy Bannon raised an interesting issue on postcodes which can be introduced under the Bill. I read an article in The Irish Times in January in which it was stated we were going to have such codes. We were told it would lead to significant savings and efficiencies, on the one hand, but that it would cost €15 million, on the other. We have to look at striking a balance in that regard. Obviously, there are already postcodes in Dublin, but many other cities and towns would be interested in the proposal. As the Bill does not provide much detail on the system to be introduced, perhaps the Minister might address the issue.

There are other points to be made about the rural post office network which is not affected by the Bill and the banking and savings services supplied by An Post. The strong presence of An Post across the country will continue, which I welcome. It is also welcome that An Post has been designated, as is the fact that the question of Exchequer funding is being examined and that any decisions taken by ComReg on service providers will be subject to Ministerial approval.

I hope the certainty provided for in the Bill will be welcomed by the general public who have great regard for what is happening with the postal service. We should not make too many changes when something is working very well.

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