Mr. John Daly:

I will touch on a number of issues. I will respond to Senator Paschal Mooney's questions as he must leave early.

We provide State savings products on behalf of the National Treasury Management Agency. The interest rates on An Post products were out of step with what was happening in the marketplace and the NTMA sought to bring them back into line with rates in the marketplace. We did not make representations to the Department of Finance or other bodies because we perform these services on behalf of the NTMA and it is the agency that sets the rates. Our rates have changed a number of times in the past 18 months or so, but these changes have not impacted on the level of inflows into the Post Office Savings Bank, prize bonds, saving certificates or bonds. As I stated in my address, in spite of cuts in interest rates, we took in €1.9 billion last year and continue to take in savings in very high figures every week. The interest rate changes have not impacted on savings. The NTMA was bringing the rates back into line with those in the marketplace, not into line with what the banks were insisting on. I am not aware of what happened with the banks, but I know our rates are back into line with those in the marketplace.

An Post engages with the Irish Postmasters Union and is constantly in contact with its general secretary, not only when issues arise but all the time. There will always be times when relationships between an organisation and its subcontractors will be tense. They are particularly tense at present because An Post wishes to change the contract for the payments system. I think that is what is driving much of the tension. My colleague, Mr. Sheehan, will deal with the marketing issues.

I am sure Deputy Patrick O'Donovan has seen the nice new offices in Newcastle West. Post offices have closed around Newcastle West, as they have in other places, but these closures have assisted the viability of post offices such as the one in Newcastle West, ensuring they have a future. The rates of pay are in line with what competitors pay retailers for the types of service outlined in Post and Pay.