Pat Rabbitte (Dublin South West, Labour)

Under the Communications Regulation (Postal Services) 2011 Act, An Post is statutorily required, as the designated universal service provider, to provide a universal postal service. The essential element of this obligation is the collection and delivery of mail to every address in the State on every working day.

The universal service obligation is a form of safety net, ensuring by way of regulatory obligation that a minimum set of services is provided at an affordable price for the benefit of all users, irrespective of their geographical location. It is a fundamental principle of the regulatory framework for postal services and is an explicit requirement of the EU postal services directive which has provided for the gradual and controlled opening of the postal services market to competition.

An Post discharges its universal service provision and through it the obligation to deliver mail on every working day to all premises in the country. This service is complemented by a nationwide retail footprint via the post office network. The latter provide valuable services to the population, including payment of social welfare benefits. In addition, An Post is leveraging its retail footprint to provide other services such as banking, insurance and the administration of State savings schemes. I consider that An Post provides a valuable nationwide service to the public.

More generally, as shareholder, I do have a strong concern about the ongoing commercial position of the company and I regularly liaise with the company in this regard. The reality is that the core mail business has suffered a major fall-off and that has impacted seriously on the company's revenue flow. In response, the company is proactively seeking to keep costs down and diversify its business. An Post has many strengths and has the largest retail presence in the country. I have impressed on the company the need to exploit further its unique position in this regard and I have been supportive of its attempts to diversify its income streams to win a wider range of commercial contracts, including within the public sector, offering higher margins and keeping costs down.

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