Bernard Durkan (Kildare North, Fine Gael)
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Question 426: To ask the Minister for Communications, Marine and Natural Resources his vision for the provision of postal, delivery and counter services in the future with particular reference to the role to be played by An Post and other service providers; the extent to which profitable an non-profitable services are to be shared; and if he will make a statement on the matter. [39206/06]

Noel Dempsey (Meath, Fianna Fail)
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The future provision of postal, delivery and counter services will be, in the first instance, a matter for An Post and other service providers.

As set out clearly in the Programme for Government, this Government and the Board of An Post continue to be committed to the objective of ensuring a viable and sustainable nationwide post office network into the future. With this in mind, I have asked the company to ensure that any strategy for the development of the company should ensure the long term viability of the post office network.

With respect to mail services, I believe that there will continue to be a key national role for An Post in delivery of mails and parcels. However, over the coming years, competition can be expected to increase in these sectors, whether from the privately owned express sector, from the large European public operators now looking for international business or from electronic substitution.

Liberalisation of the mail market in Ireland has already commenced and the proposed third Postal Directive proposes that the postal sector is to fully liberalise across the EU on 1 January 2009 subject to political agreement, which, if achieved, would open up the letter post area to full competition.

Issues that will be important for Ireland in the context of a fully liberalised market will include the protection of the universal service, 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. No decision has yet been made as to how the provision of the USO shall be financed.

The development of the postal market requires the availability of competitive, high quality products. The current level of market opening has introduced new players with offerings that meet consumer needs and further market opening will provide further opportunities for new and existing players. The development of further competition allied with a modernised and customer-focused An Post will provide the basis for the further development of the postal sector here.