Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 2: To ask the Minister for Communications; Energy and Natural Resources his views on the standard of service provided by An Post; and if he will make a statement on the matter. [36216/12]

Pat Rabbitte (Dublin South West, Labour)
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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.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I am certain all Members agree that An Post provides an excellent service, both in respect of the service it is compelled to provide and in respect of its social role in maintaining contact with people, particularly those who are more isolated from the general community. I am somewhat puzzled by the decision of the Commission for Communications Regulation, ComReg, to take a case against An Post on the grounds that it is failing to fulfil its target of next-day delivery. In the ten years I have been a Member of this House I have received many complaints about ComReg, but I can honestly state I have received no complaint about An Post. According to sources within An Post, ComReg has refused to state where the alleged failures are and has not provided hints as to how matters might improve. Instead, it appears this case will potentially be the cause of the imposition of a €12 million fine on An Post, which would be detrimental to it as a service provider. What is the Minister's view on the case being taken? Does he agree ComReg has once again highlighted its deficiencies as a regulator?

Pat Rabbitte (Dublin South West, Labour)
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I can confirm for the Deputy that legal proceedings have been commenced by the independent regulator, ComReg, against An Post on the basis that the company has failed to achieve the next-day delivery targets fixed by ComReg. The application by ComReg seeks to have imposed a financial penalty of €11.9 million on An Post for breach of the quality of service standard as measured by ComReg in 2010 and 2011. As the Deputy will be aware, ComReg is the independent regulator in this regard. I can accept that next-day delivery is a valid measure of postal standards. However, most Members of the House would share the view advanced by the Deputy that this issue is not a chief concern for postal users, at least not as conveyed to Members. In the context of the financial and commercial challenges confronting An Post, failure to achieve a nationwide 94% target for next-day delivery is scarcely the primary issue. Against this background, I am obliged to note I share the experience of the Deputy and other Members across all parties when I state complaints about next-day delivery do not feature among the matters brought to Members' attention concerning the postal services. No Member, including those in government, wishes to see one State organisation engaged in litigation against another, especially in the midst of the critical financial crisis in which the country finds itself. However, the fact remains that ComReg is statutorily independent in the discharge of this and all of its other functions.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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It is mind-boggling at a time when An Post is attempting to diversify and provide an even greater service, that ComReg effectively is attempting to impose a penalty on the company that certainly will not improve the services it provides. I do not believe I have heard of any Deputy ever having received a complaint about An Post in respect of next-day delivery. An Post provides a fantastic service that, as legislators, Members should be prepared to defend against anyone who is so-called independent.

Pat Rabbitte (Dublin South West, Labour)
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It is a reasonable question as to the extent to which the imposition of a penalty of €11.9 million on An Post would correct the perceived deficiency. Greater challenges than this face An Post. I suspect the extent of electronic substitution, the decline in its core business, the challenges that confront it from competition and so on rank higher in the matters that confront its management. Consequently, I must concede I share the surprise that there are such legal proceedings. Preferably, one hopes two public organisations can resolve this issue consistent with the remit of the independent regulator.

Michael Kitt (Galway East, Fianna Fail)
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On Question No. 3, Deputy Luke 'Ming' Flanagan is not present. As Deputy Niall Collins has tabled Question No. 4, the Minister may proceed to answer that question.

Pat Rabbitte (Dublin South West, Labour)
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The Leas-Cheann Comhairle is not taking No. 3.

Michael Kitt (Galway East, Fianna Fail)
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Not for the moment.