Fergus O'Dowd (Louth, Fine Gael)
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Question 97: To ask the Minister for Communications, Energy and Natural Resources his views on the VAT advantage enjoyed by An Post in comparison with its competitors; and if he will make a statement on the matter. [14799/08]

Eamon Ryan (Dublin South, Green Party)
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Paragraph (xia) of the First Schedule to the Value-Added Tax Act 1972, as amended, provides for an exemption from VAT for public postal services (including the supply of goods and services incidental thereto) supplied by An Post, including postmasters. Essentially, the exemption covers services provided within the "universal service" in the EU Postal Services Directive. Any specialised postal services, such as courier services provided by An Post or any other entity are liable to VAT. The VAT Directive of 2006 provides that Member States shall continue to exempt public postal services from VAT. In addition to a VAT exemption, the providers of public postal services, such as An Post, are required to fulfil universal service obligations. These obligations are not imposed on private operators.

Joan Burton (Dublin West, Labour)
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Question 98: To ask the Minister for Communications, Energy and Natural Resources his views on the report from ComReg that shows the quality of service for 2007 for An Post on next day delivery was 77% and that the target is for 94%; the steps he will take to ensure standards in the post industry are maintained; and if he will make a statement on the matter. [14673/08]

Eamon Ryan (Dublin South, Green Party)
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I have no statutory function in relation to this matter. Matters relating to quality and levels of postal service are a matter, in the first instance, for the management and board of An Post. The Commission for Communications Regulation, ComReg, is responsible under the European Communities (Postal Services) Regulations 2002 for monitoring quality of service standards in relation to the postal service. I will shortly amend the postal regulations using powers conferred on me by the Communications Regulation (Amendment) Act 2007. Once amended, these regulations will permit ComReg to apply to the High Court for the application of a financial penalty to An Post, as universal service provider, in the event that the company fails to comply with a direction issued by the regulator including in relation to quality of service targets. In my own meetings with the management of the company I have however taken the opportunity to stress the Government's support for the quality of services targets that the company is seeking to achieve and encourage the company in adopting innovative changes in their operations to help meet them.