Seán Kyne (Galway West, Fine Gael) | Oireachtas source

I move: "That the Bill be now read a Second Time."

I am pleased to have the opportunity to present this Bill for the consideration of the House. First, however, I want to extend apologies on behalf of the Minister, Deputy Naughten, who unfortunately has been unable to attend the House today. I would like to wish him a speedy recovery following his cycling accident over the Christmas period.

This Bill is a relatively short legislative proposal, the purpose of which is to repeal section 30 of the Communications Regulation (Postal Services) Act 2011, which sets out the mechanism for regulating postal pricing within the universal service using a price cap mechanism.

The mails business is undergoing a profound structural change both here and internationally. Electronic substitution has had a significant impact on the letters business, while also providing opportunities for growth in parcels. This development is particularly apparent in terms of large volume postal customers such as banks and utility providers.

The trend, which has been evident for some years, accelerated in 2016 with An Post recording a doubling year-on-year volume decline, resulting in a serious financial impact for the company. In addition, the impact of a 2.5% Labour Court pay recommendation has added further pressure to an already delicate financial situation. Each 1% decline in mail volume equates to a loss of revenue for An Post of €4 million and a 1% increase in pay adds €4.5 million to payroll.

The mails business still generates almost two thirds of An Post’s revenue and represents 78% of company payroll. That explains why the volume decline and Labour Court award has had such an impact on the company’s financial base.

See this speech in context