Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 168: To ask the Minister for Communications, Marine and Natural Resources the way in which he envisages the development of the postal services in the future in view of the existence of competition, public service obligations and the availability of network and delivery services currently available or proposed; and if he will make a statement on the matter. [6649/06]

Noel Dempsey (Meath, Fianna Fail)
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An Post operates within a regulatory framework as enshrined in EU and Irish law and therefore, the universal service obligation, which includes nationwide postal delivery requirements, is a statutory requirement for An Post, as the designated universal service provider. This is set out in Statutory Instrument 616 of 2002 European Communities (Postal Services) Regulations. Furthermore, these regulations also provide for the liberalisation of the postal market.

A study is currently being undertaken by the European Union on the impact on the universal service of the full accomplishment of a liberalised postal market. Based on the outcome of this study, 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.

Issues that will be important for Ireland in the context of this new directive will include the protection of the universal service in a liberalised market, ensuring that Irish citizens continue to receive a broad suite of postal services and the continued viability of An Post in the face of open competition. Competition has already arrived to certain parts of the sector and can be expected to intensify in the coming years and at present there are 29 firms operating in Ireland with a postal service authorisation from ComReg.

The postal sector in Ireland needs competition, especially in light of the many internationally traded sectors operating in the country but it also needs An Post to be competitive. I believe that liberalisation and the expected increase in competition will ultimately be good for both An Post and consumers and that the company can continue to be a significant and strong player in the market post-liberalisation.