Richard Bruton (Dublin North Central, Fine Gael)
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Question 333: To ask the Minister for Communications, Marine and Natural Resources if he has had discussions with any of the parties in An Post regarding the present industrial dispute; if reports are accurate that he is considering lifting the exclusive right of An Post to handle smaller postage items; if this company has in place a code of practice governing disputes in essential services under the Industrial Relations Act 1990; and if he will make a statement on the matter. [30025/05]

Michael Lowry (Tipperary North, Independent)
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Question 351: To ask the Minister for Communications, Marine and Natural Resources if it is his intention to privatise the collection and delivery element of An Post prior to full deregulation of the postal market in 2009 in view of his statement that he would give serious consideration to lifting An Post's monopoly in 2006 if the unions went ahead with industrial action over non-payment of Sustaining Progress payments; and if he will make a statement on the matter. [30746/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 333 and 351 together.

With globalisation, liberalisation and developments in technology that are changing the way people communicate, all national postal operators, including An Post, have to change very rapidly to stay competitive and commercial in the European postal market. This reflects the change in the market from one dominated by letters to one dominated by parcels and direct mail. Both of these areas are much more open and attractive to competition, especially international competition, than the traditional letters business. Competition in the sector is growing and at present there are 26 firms operating in Ireland with a postal service authorisation from ComReg.

The economy and society at large also need a strong and vibrant postal service in light of the many internationally traded sectors operating in the country but it also needs An Post to be competitive and there is universal agreement that change is required if the postal services of An Post are to adapt to the modern business environment and to continue to offer a top-class nationwide delivery service to the customer into the future. Liberalisation and the expected increase in competition will ultimately be good for both An Post and consumers.

To date, Ireland has fully implemented European Directives 97/67/EC and 2002/39/EC, which set out the requirements for member states on the provision of high-quality postal services and liberalisation within their postal networks. Under the directives, each member state is obliged to provide a universal service whereby a minimum level of service must be provided. Both the directives have been transposed into Irish law in SI 616 of 2002, European Communities (Postal Services) Regulations.

Since the transposition of the directives, the weight limit applying to postal items falling within the reserved area and therefore not open to competition has been reduced to 100g from 2003 with a price limit of three times the basic tariff for domestic and inbound international. The reserved area will be further reduced to mail weighing 50g or less and two and a half times the basic tariff from 2006 for domestic and inbound international. Outbound international mail was fully liberalised on 1 January 2004. The second directive also stipulates that the postal sector is to liberalise across the EU in full on 1 January 2009, subject to political agreement.

In light of the announcement by the Communication Workers Union, CWU, that it had rejected the Labour Court recommendation on collection and delivery and that union members have voted for industrial action which may lead to a serious disruption to postal services, I am considering all options open to me, up to and including early liberalisation of the sector, to limit the disruption caused to the sector and the economy at large as a result of any prolonged period of industrial action. However, the Government has no plans to privatise the postal service and wants to see An Post continuing to play a significant role in the postal sector following full liberalisation of that market.

To progress the change agenda necessary to the long-term sustainability of An Post, I have met representatives of An Post management and unions on various occasions over the past 12 months. I have continually emphasised to all parties the importance of an early start to the company's modernisation and that both sides must adhere to the parameters of the Labour Court recommendation in respect of the proposed new collection and delivery arrangements and Sustaining Progress. This is essential to resolve long-standing and deep-seated problems besetting the company.

I understand that in 1992, under section 42 of the Industrial Relations Act 1990, the Labour Relations Commission, following consultation with ICTU and IBEC, prepared a code of practice on dispute procedures including in essential services. The procedures in the code provide a framework for the peaceful resolution of disputes, including disputes in essential services and does not refer to specific companies. The code recognises there is a joint responsibility on employers and trade unions to resolve disputes in essential services and employments without resorting to strikes or other forms of industrial action.