An Post deprived of sole right to deliver small mail

AN POST has lost its exclusive right to deliver postcards and small letters after a law was signed to remove the last traces of the company’s monopoly on the country’s postal services.

In what Communications Minister Pat Rabbitte described as a “considerable challenge” for An Post, any commercial postal company can now offer collection and delivery services for all types of mail and parcels. Bulk business mail and parcel post has been gradually opened up to competition but, up to yesterday, An Post retained exclusive rights to items under 50 grammes, meaning it had control over most residential mail.

The new Communications Regulation (Postal Services) Act removes that clause, but An Post said customers would not experience any change to its services, pointing out that it is still legally required to fulfil a universal service obligation (USO) — delivering to every address, no matter how remote — for at least the next seven years.

The main concern of opponents to the liberalisation of the postal market is that companies would cherry-pick the most profitable postal routes, concentrating only on areas of high population.

However, a spokesman for An Post said it had been preparing for full liberalisation for some time.

“It was actually supposed to happen on January 1. It brings us into line with the rest of Europe and we’ve been living with that plan for a long time now. We’re happy to work within whatever framework we are given.”

Mr Rabbitte is confident An Post and its competitors will provide a quality, value-for-money service, but he added: “This is not to deny the considerable challenge facing An Post. Since 2008 the combined impact of the recession and of electronic substitution has been a reduction in traditional mail volume of almost 20%.

Rival company CityPOST, which currently collects and delivers business mail in the main urban centres, is to double its 180-strong workforce over the next 18 months, and it said it would be rolling out services to the public in the near future.

Managing director Ian Glass criticised new legislation. “Contrary to reports, it is my opinion that this legislation is anti-competitive as it appoints An Post as the universal service provider for the next 12 years,” he said.

The Communications Workers Union said full liberalisation of postal markets in Europe had led to the loss of 100,000 jobs. It also said An Post’s monopoly on mail under 50 grammes was needed to finance its USO obligation.