Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter in the House which I am taking on behalf of the Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, who is unavoidably absent.

ComReg is statutorily responsible for the regulation of the postal sector and independent in the exercise of its regulatory functions. Furthermore, the EU regulatory framework for the postal sector requires the regulatory function to be discharged separately from the shareholder function which the Minister for Communications, Energy and Natural Resources administers. The Communications Regulation (Postal Services) Act, passed in August 2011, put in place the regulatory framework for the newly liberalised postal service market. The Act enshrines the universal service obligation, a legal obligation on the State, guaranteeing the collection and delivery of mail to every address in the State on every working day.

Recognising the importance of universal service, the postal Act was strengthened by the Minister, reflecting commitments given in the programme for Government, to give him a direct role in ensuring the continued delivery of a universal service obligation by An Post. In terms of the hierarchy of objectives being discharged by ComReg which was recognised by the chairman of ComReg at the meeting of the Joint Committee on Transport and Communications last week, maintenance of universal service is the most important function assigned to it. In the programme for Government the Government is committed to a universal postal service as an essential public service, with a publicly owned, commercially viable, profitable and efficient An Post critical to the long-term viability of the postal market.

I watched with interest the proceedings of the Oireachtas committee and was heartened by the interest shown by all Deputies in An Post and the nationwide services it delivered. As many Deputies acknowledged, An Post is facing many challenges, not just financially but also from the development of communications technologies. As shareholder, the Minister has a strong concern regarding the ongoing commercial position of the company. The reality is its core mail business has suffered a major fall in recent years which has impacted seriously on the company's revenue flow. The scale of the decline obliges all stakeholders to work constructively to ensure An Post's capacity to fulfil its core mission, meeting the universal service obligation, is not undermined.

Turning to the role of the Minister in this area, clearly he has no direct role in legal proceedings between ComReg and An Post, the costs incurred in legal actions or the amount of management time devoted to these issues. His preference would be a focus on the fundamental problem facing An Post - the drop in mail volumes - and, in addressing this challenge, the importance of maintaining a secure future for An Post. In his view, State bodies must service the interests of the taxpayer and pursue value for money. He has advised both parties that his preference would be to see the issue in question resolved speedily, outside the courts and in a way that did not incur inordinate and unnecessary costs. An Post has indicated it would prefer mediation. The Minister, while fully respecting the statutory independence of ComReg, agrees this would be the best option. Generally, it is the Government’s policy that State agencies ought not to become involved in unnecessary and expensive litigation.

See this speech in context