Written answers

Wednesday, 29 September 2010

Department of Communications, Energy and Natural Resources

Postal Services

11:00 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 1588: To ask the Minister for Communications, Energy and Natural Resources if he will consider putting in place a moratorium on the full liberalisation of the postal services here until a full impact assessment is completed on the social and economic impacts of same. [33234/10]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Liberalisation of the postal services market is required under the third Postal Services Directive by the 31st of December, 2010.

The Directive is based on an EU Commission study on the impact on the universal postal service of the full accomplishment of a liberalised postal services market. This study concluded that full market opening is achievable in all Member States.

The postal market is already partially opened. Parcel post is fully competitive, and all mail in excess of 50 grams is currently open to all competitors. Legislation to transpose the Directive, and give effect to this final step in the gradual and controlled opening of this market to competition, is currently being drafted in conjunction with the Office of the Parliamentary Counsel. I hope to publish this legislation shortly with a view to having it enacted before the end of the year.

The issues for Ireland arising from the Directive have been widely and comprehensively consulted upon, and as with all legislative proposals, a regulatory impact analysis is conducted. The Department held an open and comprehensive public consultation in 2008, and an Options Paper examining the options and making recommendations was published in 2009. I hosted a forum in November 2009, which was attended by postal service providers, the wider business community, the postal regulator, staff representation groups, and users' interests groups, and in the main, there was broad support for the recommendations outlined in the Options Paper.

Liberalisation will bring many new opportunities. However, with or without liberalisation, there are many challenges facing An Post and the Irish postal sector generally. Globally the postal sector is facing challenges from electronic substitution, declining postal volumes generally, and the impact of the recent general economic downturn.

The Government's core policy goal for the postal sector is to ensure that Irish customers, both business and residential, enjoy competitively priced, high quality postal services. The economy and society at large need a strong and vibrant postal service.

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