Tag: ComReg

An Post was dealt a major setback last night when the main union rejected proposals that management hoped would restore the company’s financial fortunes. The Communication Workers Union (CWU), said it could not accept a set of Labour Court proposals issued back in mid-July relating to the postal company’s collection and delivery system. The union’s general secretary, Steve Fitzpatrick said this “unnecessarily divisive cumbersome deal is a bridge too far for our membership in its current form”. An Post said it was disappointed with the CWU response to the proposals.

An Post has acknowledged that the volume of domestic mail would drop by 10 per cent over the next two years if it secured a major increase in the price of stamps. In documentation provided to ComReg, the telecoms and postal regulator, An Post admits a price increase would affect use of the postal system. However, the company argues that, while volumes will fall, the increase sought would provide a net benefit in revenue terms. It also claimed that An Post needs an increase to fulfil its universal service obligations. An Post estimates that, taking 2006 and 2007 together, the drop in domestic mail volumes will be about 10 per cent. The company is seeking a 25 per cent increase in the price of basic stamp from 48 to 60 cent. This rise has been rejected in a preliminary assessment by ComReg, although a final decision may take another month or two.

A controversial request from An Post for a 25 per cent rise in the price of a basic stamp has been rejected by the regulator ComReg. An Post claims the rise is an integral part of its recovery plan, but ComReg in a preliminary assessment said the increase had “not been justified”. The postal company was hoping to increase the price of a stamp from 48 to 60 cent. However, the regulator has said it is prepared to consider the idea of increasing the price of large envelopes from 60 to 90 cent and packets from 96 to cent to EUR2. A consultation process is now under way on the pricing issue and submissions must be made to the regulator by October 14th. After this a final decision will be announced. An Post has been lobbying for a price rise since 2003. The company believes its financial position remains weak to the extent that it believes it is not in a position to pay the full terms of the national pay agreement, Sustaining Progress.

Contents
Foreword
2 Executive Summary
3 Introduction
4 What is ‘universal service’?
4.1.1 Theoretical basis
4.1.2 Practical meaning
4.2 EXISTING POSITION
4.2.1 Legal basis
4.2.2 An Post’s view of the universal service provision
4.2.3 ComReg’s view of the universal service provision
5 Developing a working definition of the universal service
5.1 CURRENT MARKET SITUATION
5.2 IMPORTANCE OF A WORKING DEFINITION OF THE UNIVERSAL SERVICE
5.2.1 Importance to customers
5.2.2 Regulatory importance
5.2.3 Why now?
5.2.4 Future evolution of the universal service
6 Services that could be regarded as part of the universal service
6.1 LETTER SERVICES
6.1.1 Current service standard
6.1.2 Is the current single tier service acceptable
6.1.3 Consultation issues
6.2 BULK MAIL SERVICES
6.2.1 Current service offering
6.2.2 Importance of bulk mail
6.2.3 The case for inclusion in the working definition of the universal service
6.2.4 Consultation issues
6.3 SEPARATE INSURED & REGISTERED MAIL SERVICES
6.3.1 Current service offering
6.3.2 Consultation issues
6.4 PARCEL SERVICES
6.4.1 Current service offering
6.4.2 Observations on An Post’s current service offering
6.4.3 Consultation issues
6.5 ANCILLARY SERVICES
6.6 OTHER SERVICES
7 Impact Assessment
8 Submitting Comments
Appendix A – Legislative basis
Appendix B – Consultation Questions
P:LibraryPostalComReg Universal Service consultation Mch05.pdf