Written answers

Tuesday, 9 May 2017

Department of Communications, Energy and Natural Resources

Postal Services

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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69. To ask the Minister for Communications, Energy and Natural Resources his views on the implications stamp price increases will have for post offices as private companies begin to compete with lower stamp prices; and if he will make a statement on the matter. [21832/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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In recognition of the exceptionally difficult financial situation facing An Post the Government  agreed, in late 2016, to give An Post increased pricing freedom in order to enable the company to increase prices in the short term and generate much needed cash flow. In this regard the Communications Regulation (Postal Services) (Amendment) Bill 2016 was published on 22 December 2016. The Bill passed through the Oireachtas and was signed by the President on 15 March 2017. I made the necessary Commencement Order giving effect to the repeal of the price cap mechanism on the 21 March 2017.

An Post increased the price of the stamp with effect from 13 April 2017.  Ireland fell well below the European average in terms of stamp prices and the increases (€1.00 for national and €1.35 for international) bring the price in line with European norms. The European average for a national stamp currently sits at €1.10.

The Communications Regulation (Postal Services) Act 2011 fully opened the Irish postal market to competition.  An Post is the designated universal postal service provider which requires it to provide a minimum level of postal service throughout the State, the essential element of which is the collection and delivery of mail to every address on every working day, which is effectively each day from Monday to Friday.  An Post has and will continue to compete with other postal operators in the market on a level playing field in order to provide a range of postal options to consumers. As a commercial State company, pricing strategies and related matters are the responsibility of the Board and management of An Post.

 

 

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