Nicky McFadden (Longford-Westmeath, Fine Gael)

I wish the Leas-Cheann Comhairle every success in his new role. I am also delighted to note the presence of the Minister, Deputy Pat Rabbitte, and wish him every success and congratulations on his appointment.

I welcome the opportunity to participate in the debate on this Bill as I acknowledge its critical importance in the advancement of Ireland's economy and society. I commend the work of An Post over the years and pay tribute to the continued efficiency and dedication of its staff. A total of 87% of post is delivered on time.

An Post plays a significant role in every part of this country. In my Longford-Westmeath constituency it is highly regarded for its high quality service and as an important source of local employment. It has a good depot in Athlone. The Minister, Deputy Rabbitte, said on Second Stage that the essential element of a universal postal service is the collection and delivery of mail to every home in every corner of the State on every working day. I welcome that acknowledgement.

An Post is not only of economic benefit to communities but it also plays a wider societal role. The postman or postwoman might be the only person an elderly person who lives on a remote boreen might meet in a day. We saw what happened with the demise of rural post offices and I would hate something similar to happen to our postal service or to lose this valuable service. Despite the increasing prevalence of e-mail and social networking in our daily interactions, I believe the tradition of posting letters is still alive. I recently had a conversation with a friend who told me she writes regularly to her friends in Australia and America.

The maintenance and continued development of An Post is of paramount importance. I welcome the Minister's assurance that the Bill does not impact on the rural post office network, post office banking services or delivery of Government and financial services through the post office network. Through the creation of a new, open and liberalised postal services sector, this Bill will provide the framework to ensure, first, that An Post is safeguarded as the universal postal service, second, that consumer rights are protected and, third, that a comprehensive framework for fair competition is devised. I emphasise the word "fair". These three issues must be adequately dealt with in the implementation of this Bill.

The Bill seeks to recognise the fundamental difference between An Post and other postal service providers. Under its provisions, the regulator of the postal service sector, ComReg, designates An Post as a universal service provider for a period of seven years. After this, another provider can be designated, or it might be decided that no designation is made. I hope the Minister will consider a review of this period. Competition is healthy for the postal market provided the competition is fair. Competitive markets encourage innovation and greater focus on consumer friendly approaches. The introduction of a price cap, for example, would protect users against significant price increases. Of course, this new competition must be fair in nature and ensure that consumers, the State and existing postal service providers are protected through the creation of a robust regulatory framework.

I welcome the Minister's remark that under the Communications Regulation Act 2002 the Minister for Communications, Energy and Natural Resources can issue strategic policy directions to the regulator. This country has had bad experience with regulation so I warmly welcome that statement. An Post will carry certain obligations in its remit as universal service provider and I welcome the Bill's provisions which provide for competitors of An Post to contribute to universal service costs where the regulator deems that an unfair burden exists. Other postal service providers must not be granted free rein to cherry-pick preferred areas and shirk their universal service obligation of next day delivery. New entrants into the postal service market should be of high standard and should ensure that every member of the community is catered for, regardless of location.

I acknowledge the work carried out so far by An Post. I am concerned about liberalisation from the point of view of job losses, as there were huge job losses in Germany. I hope the Minister will comment on that.

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