Joe Sherlock (Cork East, Labour)
Link to this: Individually | In context

Question 19: To ask the Minister for Communications, Marine and Natural Resources if he intends to publish a comprehensive Post and Postal Services Bill before the general election; and if he has given directives or requested strategy programmes from the new chief executive officer of An Post and his management team; and if he will make a statement on the matter. [33437/06]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I have no plans, at this stage, to introduce a Post and Postal Services Bill before the general election. With respect to strategies for the development of An Post, that is a matter, in the first instance for the board and management of the company.

My officials and I have met with the new chief executive of An Post since his appointment earlier this year. The company has made a commitment to prepare a comprehensive strategy review to be submitted to me within the next few months.

It is important that any strategy for the development of the company should ensure the long-term viability of the post office network and should take into account the challenges of the future liberalisation of the postal sector.

The Government recently approved the company strategy for the creation of a financial services strategy with Belgian bank, Fortis. If successful, this venture could lead to a significant increase in post office business and contribute to the viability of the network.

As regards the challenge presented by competition, liberalisation of the sector, as set out in two European Union postal directives, has already commenced in Ireland with some sectors such as outbound international mail already fully subject to competition. An Post, like all other postal operators will face more intense competition upon full opening of the market, which the European Directives propose to happen, subject to political approval, on 1 January 2009.

I understand that the Commission recently completed a draft amendment to the current postal directive and that this is to be submitted to Parliament and Council for ratification. This proposal, I understand, confirms 1 January 2009 as the date for full market opening of the postal sector across the EU. Any ratified Directive will be subject to Oireachtas scrutiny and will be required to be transposed into Irish Law.

Therefore, in terms of dealing with the challenges facing An Post in the coming years, the restructuring plan between unions and management, agreed earlier this year, will play an important part in the process of placing An Post on a more secure financial footing. It is imperative that all sides continue to work together to ensure that the plan is fully implemented.