Joe O'Reilly (Fine Gael)

I move amendment No. 1:

In page 9, subsection (1), between lines 15 and 16, to insert the following:

" "distribution centre" means the main hub location where efficient automatic processing of mail takes place in large volumes sufficient for the operation of a national mail collection and delivery network;".

The objective of this amendment is to ensure we will continue to have a clear definition of what is a distribution centre. The thinking behind the amendment is that we should establish the principle that there should be no distribution of mail below the level of such a centre. In order words, a private operator would not be able to seek to enter the marketplace and operate below the level of a mail centre. There are four automated centres in the country, the establishment of which cost the Exchequer €100 million and in which 2,000 people are employed. These primary hub locations must remain the centres of distribution. The objective of the amendment is to ensure a private operator would not be able to enter the market and cherry-pick below that level. In other words, an operator would not be able to agree a price for the distribution of mail from a smaller centre. To use the Athlone centre as an example, we want to ensure an operator would not be able to distribute mail from the central post office in Moate and have the most expensive part of the work done by postal workers there and in so doing avoid using the distribution centre through which all mail for the area must be processed. That is the reason I want to include the definition of "distribution centre" in the section.

There is an amendment in my name and that of Senator O'Toole to section 28. It seeks to copperfasten the concept embodied in amendment No. 1, namely, that we maintain the distribution centres and ensure that when private operators enter the marketplace, they would not be able to get An Post to make their deliveries at a special price from a location below the level of a distribution centre and thus prejudice the operation of such a centre and ultimately place An Post, the wider public service and the universal service obligation at risk. EU law requires us to introduce this legislation, but in so doing we must preserve the universal service obligation and the integrity, effectiveness and success of An Post. In other words, we must ensure An Post is fit to deliver a universal service and that business is not taken from it, which would make it impossible for it to continue delivering the service successfully. If private operators are allowed to cherry-pick centres from which it wil be attractive to deliver mail because of high volumes and not to use the central post office system - comprising the four network centres - that will present a problem.

As I said on Second Stage, it is very important to preserve the universal service obligation. If one looks out the window today at the severe weather conditions, one will realise why it is very important there are postal service staff at isolated locations providing a very important social service in calling to people. I gather that on his radio programme on Radio 1 today Pat Kenny received many calls expressing gratitude to An Post for the social service it was providing in these weather conditions. That is worthy of mention. It would be wrong, therefore, if people had to collect mail at central locations. If it was not for the current system, persons in isolated areas could be lying dead for days in their homes without anyone knowing. Everyone has the same constitutional rights.

The amendment seeks to define "distribution centre" as the main hub location where efficient automatic processing of mail takes place in large volumes sufficient for the operation of a national mail collection and delivery network. That is where mail should be processed in the system, whether handled by the universal service provider or private operators. I also recommend the later related amendment to section 28 in my name and that of Senator O'Toole and others. I would recommend the inclusion of this definition in the legislation and ask the Minister to accept it as reasonable as it would provide the necessary reassurance.