Tommy Broughan (Dublin North East, Labour)
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Question 73: To ask the Minister for Communications, Marine and Natural Resources if the Government will respond to the new proposal by European Commissioner, Mr. Charlie McCreevy, on abolishing the reserved areas for national postal operators for letters below 50 g; his views on the concerns of Ireland's EU partner states such as France, Italy, Spain, Poland, Belgium and Greece that Commissioner McCreevy's proposal will weaken customer service in the postal sector and lead to thousands of jobs losses; the way or the model by which he proposes to maintain the universal service obligation; if he will establish a new comprehensive postal services strategy to ensure that An Post is robust enough to meet the challenges of the fully liberalised market; and if he will make a statement on the matter. [39126/06]

Noel Dempsey (Meath, Fianna Fail)
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The European Commission's proposal for a third postal directive envisages that the postal sector across the EU will be fully liberalised on 1 January 2009, subject to political agreement. The proposal is based on a Commission study on the impact on the universal service of the full accomplishment of a liberalised postal market. The study concludes that full market opening is achievable in all member states, including Ireland. It also concludes that liberalisation has the potential to create employment in the postal sector. The focus of the debate in Europe has now moved to the European Parliament and Council.

Liberalisation will undoubtedly encourage new entrants to the market. Other sectors that have liberalised as a result of developments at EU level, such as the telecommunications market, have provided greater consumer choice and achieved reduced prices, and I anticipate that liberalisation of the postal market will also have positive effects.

Ireland has fully implemented European Directives 97/67/EC and 2002/39/EC, which set out the requirements for member states regarding the provision of high-quality postal services and liberalisation of their postal networks. Under the directives, each member state is obliged to provide a universal service, whereby a minimum level of service must be provided. I understand that there are no proposals to amend those provisions in the third directive.

I am anxious to ensure the continued operation of a top-quality universal service and the highest levels of customer service, and Ireland's position on the proposals will reflect that view. No decision has yet been made on how provision of the universal service obligation should be financed in the absence of a reserved area. My departmental officials and I are currently considering various options in that regard. The proposed postal directive will be subject to Oireachtas scrutiny.

I believe that there will continue to be a key national role for An Post in delivering mail and parcels. However, over the coming years, competition can be expected to increase in these sectors, from the privately owned express sector, from large European public operators now looking for international business and from electronic substitution. Therefore, to deal with the challenges facing An Post in the coming years, the company's management, in conjunction with the trade unions, must deliver on restructuring agreements, particularly for mail.

The postal sector in Ireland needs An Post to be competitive and efficient. I believe that liberalisation and the expected increase in competition will ultimately be good for both An Post and consumers and that the company can continue to be a significant and strong player in the market after liberalisation.

Tommy Broughan (Dublin North East, Labour)
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Regarding the Minister's comment on the operation of other deregulated markets, is it not correct that the result in the energy sector has been underinvestment, with amber and red alerts and blackouts? Has the Minister transmitted to Commissioner McCreevy the Government's view of the 2009 deadline? Many of his European counterparts have conveyed strong views to the Commissioner. For example, Mr. Alain Hutchinson MEP of the Parti Socialiste in Belgium has stated that the European directive, if adopted, would have disastrous consequences for Belgian citizens.

Perhaps Fine Gael might give me a chance to ask the question. This is the second time that its members have interrupted.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Order, please.

Tommy Broughan (Dublin North East, Labour)
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Mr. Hutchinson believes that there would be heavy job losses, an increase in prices and a loss of services to those who need them most in communities, the elderly and frail, who would never be financially viable customers for private companies. That has been the reaction to Commissioner McCreevy's plans in many countries. I believe that the Minister was among those at the airport waving him goodbye when he left for Brussels, happy that he was going. Has he asked him about his plans and their impact on Ireland?

The Minister has spoken of models of maintaining the universal service obligation, but what are they and what subsidy would be required? Is he considering a territorial division, with an unbundling of the network in some areas and An Post delivering for other operators? Would there not then be a danger that certain operators, as they have intimated, will cherry-pick those parts of the network most valuable commercially?

What has the Minister done to create a universal service obligation and lay it before the House? Is a postal services Bill not an absolute necessity before the Government leaves office not only in this regard, but relating to a whole range of matters? Why has the Minister not prepared a strategy statement for An Post? He will soon leave office without having given us any strategy from 2010. What is his estimate of the number of people employed by An Post in 2010? Is the Fortis deal in jeopardy now that the Irish Postmasters' Union has said that it cannot support it owing to many of its members effectively working for rates below the minimum wage? The Minister will be leaving office with post offices closing at an approximate rate of one every ten days, such is his track record. The network is effectively closing down and falling apart owing to inaction on his part.

Has the Minister held any talks with his colleague, the Tánaiste and Minister for Justice, Equality and Law Reform, Deputy McDowell, regarding post office security in the wake of the "tiger" raids? Three have occurred since we last had the chance to put questions to the Minister, with postmistresses and their families subjected by criminals to the most dastardly treatment. What steps has the Minister taken to protect them?

Going back to when the Minister, Deputy Dermot Ahern, was Minister for Communications, Marine and Natural Resources, the Government will have halved the post office network it inherited in 1997. It has dismantled it through its disgraceful and thoughtless attitude.

Noel Dempsey (Meath, Fianna Fail)
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I was wondering when the Deputy would have another rhetorical tirade.

Tommy Broughan (Dublin North East, Labour)
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That is the track record. The Minister should put it in his election literature.

Noel Dempsey (Meath, Fianna Fail)
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He is usually good at that kind of thing during parliamentary questions, all doom and gloom.

Tommy Broughan (Dublin North East, Labour)
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Until the new Government.

Noel Dempsey (Meath, Fianna Fail)
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I was not aware that anyone waved Commissioner McCreevy off at the airport; I was certainly not there.

Tommy Broughan (Dublin North East, Labour)
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Is the Minister sure?

Noel Dempsey (Meath, Fianna Fail)
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I am absolutely sure, and I would not mislead the House as the Deputy did by making that claim.

Tommy Broughan (Dublin North East, Labour)
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He taxied him out.

Noel Dempsey (Meath, Fianna Fail)
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Ireland has participated fully in the debate on the liberalisation of postal services in Europe, not only in the last six months but for a longer period. The deadline of 1 January 2009 for the final liberalisation of those services has been in the public domain for a considerable period, before I became Minister. In the course of the labour relations difficulties at An Post a year ago and in the 12 months previous to that, I put it to those involved on more than one occasion, both unions and management, that liberalisation was hurtling down the track at a rate of knots and that we did not have time for the type of argy-bargy that had gone on for the previous 12 to 18 months. A year later, there is cause to be hopeful those industrial relations difficulties are behind us and that both unions and management can work together effectively. While those labour relations issues were being mediated through conciliation sessions and various triumvirates, I put it to both sides more than once that it would be better to focus on the future rather than the past. That remains the case.

It is a matter for An Post, both management and unions, rather than the Minister of the day to decide how the company will meet the challenges it faces. My job is to ensure, in the context of the discussions on the directive, that our postal services are capable of meeting those challenges. The Deputy asked me specifically how the universal service obligation might be maintained. There are several ways of doing this, one of which is the provision of reserved postal services areas. There is the possibility of a levy on all operators in the country to subsidise the less economically viable areas. Several options are being considered.

I do not believe the Fortis deal is in any danger. It will ultimately be of benefit to the post office network and the postmasters themselves. Discussions are ongoing between the latter and An Post management to reach agreement in this regard. This issue relates to contract staff and is not a case of negotiations between trade unions and management. I have spoken to both sides on the outstanding issues and am hopeful a resolution can be found quickly. It is a matter for the management and the Irish Postmasters Union, IPU.

The question of the optimum size of the post office network is an issue that has been discussed before. It is for An Post to make a decision in this regard as it is part of the mandate it is obliged to deliver. The IPU has clearly indicated its view that there are too many post offices. The document produced by Farrell Grant Sparks indicated the IPU's acceptance of this and its — not unreasonable — assertion that if staff are to leave the service, they should receive greater compensation than is currently the case.

In regard to security, I understand An Post has engaged with the appropriate authorities and taken advice on improving security provisions not only in recent weeks but in the course of the last 12 months.

Séamus Pattison (Carlow-Kilkenny, Labour)
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The time for Priority Questions has expired. Before moving on to other questions, I call Deputy Perry who has requested permission to make a brief correction to the record regarding a previous parliamentary question.

John Perry (Sligo-Leitrim, Fine Gael)
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In the course of discussion of Parliamentary Question No. 4 of 19 October 2006, which I tabled and which related to the Lost at Sea scheme, I asked:

How is it possible that two persons, both constituents of the then Minister, Deputy Fahey, received 75% of the funding allocated, which was a substantial amount of money?

I wish to correct the record to state:

How is it possible that two persons, both constituents of the then Minister, Deputy Fahey, received 75% of the tonnage allocated?