John Gerard Hanafin (Fianna Fail)

I am conscious that we have one universal provider of postal services in the country. There are dangers inherent in the changes that take place in implementing an EU directive and these should be flagged. An Post's services have been profitable and successful. It has a 90% next-day delivery rate and provides banking and bill payment services. We must ensure such services will continue to be provided, as An Post is an integral part of the community. Members of the House are grateful for the postal service provided, particularly at Christmas time when there is a large volume of mail each day. It requires extra effort to handle such volumes and it is always made.

We should recognise the social aspect of the service provided by An Post. We all know our local postman. An Post has become an integral part of the lives of older people in particular in that postmen maintain social interaction through mail delivery, while local post office staff provide various services. At a time of insecurity such as the current banking crisis people may be worried when listening to the media but they know An Post provides a safe haven.

The main focus of An Post is on the provision of postal services. If it is to have a universal service obligation, there must be a level playing field for any other company which wants to enter the market. Such a company might not want to deliver in certain areas such as remote rural parts, while cherry-picking profitable services in urban areas. That is one concern I have. Post offices should be fully paid for the volume of work they will undertake, including the handling and sorting of mail, as well as delivery services.

We are making decisions now that will affect us in the future. In other European countries new providers are paying low wages while in competition with others which are offering very good terms and conditions of employment. The matter is in our own hands, on the basis of EU regulations. I am conscious of the EU directive "Recycle 16" which places an obligation on new providers to grant proper terms and conditions of employment. Given that we have a social economy, one of those terms and conditions should place emphasis on workers becoming members of a trade union to protect their interests. In that way we could avoid the practice that prevails in other countries in which union membership is frowned upon.

There should be no job losses as a result of this legislation. The opening up of the sector should not be at the expense of existing postal services. It should mark an improvement in services, while ensuring current service levels are maintained. This can only be done by maintaining jobs. In providing a universal postal system during the years An Post has managed to remain profitable. However, its profit amounts to less than 1% of turnover.

We may lose two things as a result of these changes: first, the universal provision of services, and, second, a profitable service. In addition, stamps are cheap to buy. How, therefore, will the Minister maintain these if we do not impose a strong levy on any non-universal service provider establishing in this country? It is well known that there will be cherry-picking, but this should not be encouraged. It is of no benefit to the State to have low paid jobs, while profits are being removed from the country and a proper social service is not being provided.