Maurice Cummins (Fine Gael)

I second the motion so ably proposed by my colleague, Senator O'Reilly. EU postal markets will be open to full competition in 2011. This involves a two-year extension from the original date of 2009 and I hope the extra two years will prepare Europe's postal monopolies, including An Post, for the competition in the marketplace which will undoubtedly come.

Most segments of the market, such as parcel and letter deliveries above 50g, have already been opened to competition but the standard letters segment, which is the most lucrative segment of the EU postal market, has not been, except in Sweden, Finland and the UK which at this stage have fully liberalised their postal service markets. An Post has stated that it is ready to take advantage of the opportunities offered by postal liberalisation, and I hope the company is correct. It will certainly face tough opposition in the future from pan-European operators such as Deutsche Post in Germany.

The fact that, on average, 78% of mail posted in the period from 1 January to 30 June last was delivered next day suggests that An Post has some way to go to reach the 90% plus target for next day delivery services, as is the case in Belgium, Holland, the Czech Republic, Estonia, Austria, Britain and Poland. One of my concerns about the recent ComReg report is the major variation in the results between different mail flows. It suggests there is a problem in ensuring that the people in rural areas get the same level of postal service as that provided in Dublin. Has any decision been made yet on how the cost of the universal service obligation will be met? An Post accepts it will have to compete with companies coming here to cherry-pick profitable areas but in reality can An Post be expected to cross-subsidise loss-making areas where it will be required to serve out its universal service obligations? That question must be addressed.

In 2005, the Government, through the Department of Communications, Marine and Natural Resources, committed itself to introducing postal codes by January 2008. What is the current position regarding that commitment? It will not be introduced by January 2008 as promised but I urge the Minister not to delay any further and introduce that system at the earliest possible opportunity. A well-functioning and cost effective service is good for business and the rollout of a postal code system would speed up the sorting process and allow for a more reliable postal service. I am aware the chambers of commerce of Ireland are keen to see this system in place and I would welcome the views of the current Minister on that subject. Is it another promise gone by the wayside or what is the position regarding that commitment given two or three years ago?

My other colleagues will spell out the cost to communities of the closure of so many post offices nationwide. Are we likely to see more closures in the not too distant future? It is my information that another batch of closures is imminent and were merely put off until after the general election.

I welcome the fact that An Post will continue the arrangement with the Department of Social and Family Affairs for social welfare payments, which is of paramount importance. It is a major part of the business of post offices and it is essential that they expand their services into other areas such as banking and other aspects of postal services to keep post offices open and viable.

I ask the Government to withdraw its amendment to the motion as I believe both sides would wish that An Post would stand up to the mark, provide the best possible postal service for its customers and maintain the essential services our post offices provide nationwide. We all want An Post to succeed. We all want the best possible postal service and the protection of the workers in An Post by having a strong, viable service and an expansion of services for post offices in the coming year.