Dáil debates

Wednesday, 20 July 2011

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

 

6:00 pm

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)

I move amendment No. 19:

In page 25, to delete lines 36 and 37 and substitute the following:

"(c) subject to any decision made by the Commission under paragraph (b) of subsection (2), prices shall comply with the uniform tariff referred to in that subsection;".

Following our discussion on Committee Stage, I undertook to look again at uniform tariffs. As I mentioned in that debate, the reality is that there has been a uniform domestic tariff in place since the introduction of the penny post in 1840.

Having listened to Deputy Ó Cuív - not since 1840 - and explored the issue further, I propose to require that this will be the default in law. Under section 28, therefore, a uniform tariff will apply throughout the State to any postal service provided at the single piece tariff. The intention is to ensure An Post's ability to compete with other postal operators is not inappropriately restricted. Naturally, provision is being retained for the option to move away from this default position if the market develops in a way that necessitates it. Decisions in this respect would be made by ComReg, having regard to the reasonable needs of users and with the consent of the Minister for Communications, Energy and Natural Resources. This is in line with the postal directive that permits the imposition of a uniform tariff in the public interest. My proposal also provides that if it is decided to undo the requirement for a uniform tariff, ComReg may - again with the consent of the Minister - undo such a decision.

I have also re-examined the issue of a cross-Border uniform tariff, as requested by Deputy Ó Cuív. I am not proposing to change this option to make it the default in legislation. As we know, the 55 cent stamp that is charged by An Post for delivering single piece mail covers delivery for the whole island of Ireland. As pricing issues north of the Border are matters for postal service providers based there and are subject to regulation by a different national regulatory authority, it would be inappropriately restrictive to require An Post to have a cross-Border uniform tariff in primary legislation. It is more appropriate for the position to remain as it is in the current legislation, which provides that a cross-Border uniform tariff may be required by An Post or ComReg with the consent of the Minister. As I understand it, An Post has no intention of changing the position that has obtained.

Arising from these proposals, I have decided to amend section 28(2). A small number of consequential amendments are required to update cross-references. I trust that Deputy Ó Cuív will support these amendments, which arise from our discussion on Committee Stage. I cannot accept amendment No. 23, which proposes to add the words "which are less" to section 28(3). The section in question provides that the application of a uniform tariff does not prevent a designated universal service provider from negotiating and concluding individual agreements with users on prices. The proposed amendment is not necessary and may unduly constrain An Post in negotiating with other postal service providers.

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