Seanad debates

Tuesday, 7 December 2010

Communications Regulation (Postal Services) Bill 2010: Committee Stage (Resumed)

 

3:00 pm

Photo of John Gerard HanafinJohn Gerard Hanafin (Fianna Fail)

I ask the Minister to take cognisance of the fact that the access rate available to new entrants in the United Kingdom was too low. This has created difficulties for Royal Mail in terms of its profitability and ability to trade out of the current difficulties. With that in mind, we need to get it right first time around. I, therefore, ask the Minister to allow for an appeals mechanism in respect of the access rate available to new entrants. We must reflect the value available to new entrants, bearing in mind all the time, as I mentioned when the Minister of State was in the House, that there will be a situation where there will be a limited market, with a low profit figure of less than 1%. Unless the new entrants can grow the market, there is no doubt that we will end up subsidising An Post. We must reflect the actual cost, by which I mean we must take into account everything involved in the provision of the service. I, therefore, ask the Minister to take another look at down-stream access costs.

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