Mr. Christoph Mueller:

In regard to the retail network, we should not confuse last mile delivery with the physical post office. Traditionally, the post master left the post office in the morning but more and more the post comes from distribution centres. The committee's report shows more people receive social welfare payments in smaller post offices. Another interesting fact is that the savings rate is also highest among that same constituency, so that needs a closer look.

I also gather from the report that services, particularly BillPay, are an important thrust.

I will now factor in one aspect that we have not introduced sufficiently to the discussion, the correlation that can be measured all over the world between mail and Internet penetration. The level of Internet penetration in rural areas is very low and one might ask the question whether that is good or bad news. It is good news when it comes to online retail services because to a certain degree parcel post can compensate for declining letter volumes, as in the oft quoted examples of Finland and Sweden. The bad news is that we have seen increased penetration of high speed Internet access. One also sees a correlation in the fact that more and more financial and payment services will be entertained online. Therefore, we must closely examine to what extext technology, particularly better broadband Internet access, will impact on the product mix in outlets. I note the committee's seven recommendations in that respect. The right key words were mentioned: retail, financial services and the potential co-operation in a commercial sense with banks and credit unions.

On average, there are several social centres in small towns all over Europe: the post office, a small hardware store, a pub and so on. There are problems in all directions. In the little town in which I lived the post office had a counter in the supermarket and the merger was successful. If one wants to increase the level of online retail of groceries and other goods, it will be at the expense of the local supermarket. An overall balance needs to be found and the report mentions all of the opportunities and difficulties that I can see.

With regard to salaries, the committee will understand that, as chairman designate, I cannot specifically respond to a query about the current CEO's salary. Of course, members must take into account that the salary must be sufficient to attract professional management to a company of the size and importance of An Post. To attract professional management, one must provide a salary that is market based. I promise the committee that I will, in my role as chairman, examine remuneration and carry out an audit of all relevant committees and review what I discover.