Fidelma Healy Eames (Fine Gael)

I thank the Minister for attending this debate. I support liberalisation only on the basis that the same rules that apply to An Post will apply to all new providers. The main rule is the universal service obligation. Otherwise, something intended to bring more competition into the market will be blatantly uncompetitive if there is not a level playing field for all providers. The universal service obligation means that An Post delivers the same item of mail at the same cost to rural customers, which is less attractive to providers who wish to cherry pick the best business, as to urban areas that are more profitable. The same rules must apply to all providers.

I have met many of the workers at An Post and they are quite happy to open up the service on that basis. Otherwise, the legislation will be blatantly unfair. That is the main amendment that must be included in the Bill. If there is to be liberalisation of the postal service, the same rules must apply to all providers. Currently, a letter delivered to Clifden, County Galway costs 55 cent, the same price as a letter delivered in Dublin city or Galway city. Politicians sometimes use publicity mail. I have not used it but I have checked prices. I can get 1,000 leaflets delivered in Galway city for €50 but in rural areas it will cost €90. Why should An Post have to meet the universal service obligation and lose money and jobs if other providers are allowed to cherry pick with downstream access to the An Post network? It is blatantly unfair. The purpose of this Bill is to bring about more competition and a better deal for the consumer but it could be a far worse deal for the consumer.

The great thing about our friendly postman or postwoman is that we know them. They are safe and secure and they have a badge with which we identify. Many people right across Ireland leave their homes open, irrespective of whether it is recommended. I have done it. The postman will open the door and drop in the post. I know my postman but if we open it up to every type of provider, while they might have the right to provide a service, we will not have the same security in our homes. There can be a downside to this in other ways and we must examine the social impact.

If the universal service obligation is not to be imposed on all providers, the legislation must find a way to provide State aid in a worst-case scenario so An Post can afford to deliver in the areas no one else wants. The only way to open up the market and fund the universal service obligation is to impose the same obligation on all operators to deliver everywhere at the same price as An Post does. This is what has happened in Finland and it is the only place it is working. The legislation must oppose cherry picking and adopt the Finnish model.

Downstream access is a key point. Competitors may compete for customers posting at a lower rate than An Post and then insert it into the An Post network for delivery. The downside is that An Post could end up receiving mail at the delivery office level, having lost out at the postage level and be forced to operate at a loss. That is absolutely ridiculous. The legislation must prevent downstream access below mail centre level. Otherwise there will be no remuneration to An Post.

The Minister has great experience of regulators and that will be an issue here. The legislation gives ComReg unfettered powers to decide on almost every matter regardless of social implications. Experience shows regulators have facilitated competition by curbing the previous monopoly providers' market share, by allowing cherry picking and downstream access and price caps. Let us consider the experience in the UK. Royal Mail is in great trouble because this is what happened. The UK example shows that regulatory policy has been a contributory factor in this precarious situation and, in the Hooper report of September 2010, the UK Government is considering how to address it. The legislation should ensure the regulator is answerable to the Minister and the Oireachtas on key matters such as the universal service obligation, which has national implications. The role of the regulator in regard to electricity supply is worrying. The price has been kept up to attract competition but we should bear in mind what happened to the consumer. The Minister understands this point.

Employment is not to be scoffed at. An Post has hired 10,000 people nationally and 500 people in the constituency in which I live, Galway West. They are good people and committed to the universal service obligation. They understand the social implications and the duties of it. The legislation should look to protect jobs. I thank the Minister for listening.