McFadden reiterates FG support for An Post
PRESS RELEASE -
Fine Gael Longford/Westmeath Senator Nicky McFadden speaking in the Seanad last week on Postal Services legislation expressed her concern regarding the upcoming Postal Services Bill.
This bill would permit the European Third Postal Directive into law, and would open the Irish postal market to free competition. At present the current postal funding model for a universal service guarantees a five day delivery service to every address in Ireland at the same standard price of 55 cent.
“Fine Gael strongly supports An Post as a State company that provides important economic and social services in all parts of the country and employs thousands of people. We do not want to do anything that undermines the company or allows other operators to cherry pick the profitable elements of the business or creates a situation whereby An Post needs a subsidy having never needed any State funds.
“Profitable routes in urban areas heretofore subsidised remote rural areas. We cannot lose the value these people bring to the rural areas. That 87% of post is delivered on time is phenomenal. We take this for granted. A price of 55 cent is extremely good value and is one of the lowest prices in Europe. The saying ‘if it ain’t broke don’t fix it’, springs to mind.
“The most important thing at a time of economic crisis is protecting and creating jobs. Athlone has one of the four main postal centres in Ireland. It provides a great professional service and has amazing staff. There are international examples of jobs being lost when postal services were reconfigured. We cannot allow this to happen in Athlone especially at a time like this. I am reiterating Fine Gael’s support for An Post and local post offices and calling on the Government to take control of the situation and protect jobs.”
This entry was posted on Wednesday, December 1st, 2010 at 12:31 am
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The Irish postal market should be opened to competition. Right now, we have a state monopoly. You claim that “a price of 55 cent is extremely good value and is one of the lowest prices in Europe”. The reason this price is so low without the service being substandard is not because our postal workers are ultradedicated supermen. It is because this price is highly subsidised.
We the electorate pay the cost in two forms: the ‘low’ price that we are directly charged and the hidden price that we are indirectly charged through taxation. I would contend that the situation as it stands is quite broke.
You claim that deregulation or privatisation would benefit the lucrative urban areas at the expense of rural areas. This has shown to be untrue time and time again. Both the German (Deutsche Post) and Japanese (Japan Post) postal services were privatised in the previous decades. Neither saw a reduction of services to rural areas.
On the contrary, both firms have consistently lowered prices for the consumer while expanding their areas of service. Deutsche Post even expanded into foreign markets, and earns €63.5 billion per year as one of the most successful delivery and logistics firms in the world.
Deregulation of the postal service and/or privatisation of An Post would raise employment, lower costs to the consumer, and negate the need for the government to subsidise the sector.
If you intend to create jobs, save money and reduce the tax burden on the electorate, I urge you to reconsider your position concerning the Third Postal Directive.
Ricky Connolly.