Seán Ryan (Dublin North, Labour)
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Question 127: To ask the Minister for Communications, Marine and Natural Resources if he will report on the recent ending of the industrial dispute at An Post; his views on an early imposition of a full liberalisation of the postal market before the 2009 deadline; and if he will make a statement on the matter. [2101/06]

Noel Dempsey (Meath, Fianna Fail)
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I would like to welcome the recent developments at An Post where the parties have accepted the Labour Court recommendations of 22 November last which has led to a resolution to the recent industrial relations difficulties at An Post.

On foot of this Labour Court recommendation, the company has paid the outstanding increases due last year under Sustaining Progress and has agreed to pay all future increases as they fall due and the unions have signed up to a change and modernisation programme.

These are very welcome developments and I look forward to the parties working together to implement the change programme that is so essential to the company's financial viability and to providing the quality of service which customers are entitled to expect.

As regards the liberalisation of the postal sector, it is provided for in 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 including a delivery no less than five days a week. Both of these directives have been transposed into Irish law in SI 616 of 2002 European Communities (Postal Services) Regulations.

Liberalisation in Ireland has already commenced and 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 mail. The reserved area was further reduced to mail weighing 50 g or less and two and a half times the basic tariff from 1 January this year for domestic and inbound international mail. Outbound international mail was fully liberalised on 1 January 2004. The second directive also proposes that the postal sector is to liberalise across the EU in full on 1 January 2009 subject to political agreement.

I understand the next steps for the Commission include a prospective study to be completed on the impact on the universal service of the full accomplishment of a liberalised postal market. Based on the outcome of this study which is currently under way, the Commission will present a report to the European Parliament and Council by 31 December 2006 accompanied by a proposal confirming, if appropriate, the date of 2009 for the full liberalisation of the postal market or to determine alternative steps in light of the study's conclusions.

I have no plans, at this stage, to bring forward the date of further liberalisation of the remaining postal services that are currently exempt from competition but I will continue to monitor the situation.