asked the Minister for Communications if his approval was sought for the planned increase in postal charges by An Post, which will come into effect on 1 January 1990; when it is expected that our postal charges will be brought into line with the EC average; and if he will make a statement on the matter.

The answer is yes. Under the terms of the Postal and Telecommunications Services Act, 1983, section 90 (2) An Post should not increase any charges without the concurrence of the Minister.

On the basis of information furnished to me by An Post, Ireland is ranked fourth in the EC postal charges table. An Post's charges reflect their operating costs, almost 80 per cent of which consist of payroll and related costs.

When the Minister refers to us as ranking fourth he means we are fourth most expensive in Europe. May I ask him if in deciding on these increases he consulted with the person who would be most affected, namely, the consumer — the person who uses An Post as a means of communication in letter writing — and, more important, the business community? Is he aware that grave widespread concern was expressed, particularly in the business community, at the adverse impact which these increases would have on business performances and competitiveness in the coming year as a result?

One of the difficulties is that the last increase was in March 1986. When there are no increases for a period the organisation concerned can have some difficulties unless it is possible to greatly improve efficiency. The average increases are 7.5 per cent whereas the consumer price index increase over that period was 11.6 per cent. The Deputy will realise that to maintain employment and the level of wages that would be required, An Post have to take some action in that area. The Deputy has pointed to Ireland's position in Europe. It is unfair to point to Europe without recognising the fact that we provide a door to door postal delivery service. We have an extensive network for such a small widespread population. Many European countries do not have this service so one is not strictly comparing like with like.

Can the Minister explain why we do not keep increases on a current basis and why there is such a time lag — four years or thereabouts — which obviously means that the impact is all the greater when the increases are made?

Every effort is made, as the Deputy will be aware, to keep cost increases to the minimum. Consequently, every effort is made to improve efficiency. There are, of course, various measures which are being taken within An Post to improve the efficiency of the service and these will help to keep prices down.