FG fears cherry-picking of postal service by private firms

FINE GAEL has warned that badly-managed and poorly-regulated competition in the postal services could see private sector companies “cherry-picking” parts of the service, leaving An Post as a loss-making entity.

Leo Varadkar, the party’s communications spokesman, was speaking during a Dáil debate on the Communications Regulation Bill 2011 which would allow for the first time, private sector postal service providers to process and deliver ordinary letters and items of mail weighing less than 50g.

“Well-managed and regulated competition in the postal service market will be beneficial,” Mr Varadkar said. “It will provide real choice and new services for consumers, it will keep prices down and will incentivise An Post to innovate, become more efficient and improve and diversify the services it provides. However, badly managed and poorly regulated competition will be a disaster.