Mr. John Daly:

In terms of State savings, at the end of 2007 we had 6% of national savings. We have grown savings from 6% at the end of 2007 to 17% and this is based on Central Bank reports. As Deputy Troy stated this is down to confidence and trust in An Post, the post office network and in the State savings products. In terms of the number of post offices that are sustainable, I mentioned in my address that we have an obligation under the Department of Social Protection, DSP, contract, our largest contract for a particular geographical coverage. We could do that with 600 post offices, so that would leave circa 530 offices, which would not be needed to satisfy our largest contract. Every one of them would be unsustainable. Within the figure of 600 post offices, there are also circa another 200 offices which lose money for us, but which we require to satisfy our DSP obligation.

I do not recall saying that a postmaster's income was at a high income level, what I was reiterating were the changes over the number of years. I recognise that postmasters have costs but they have to recognise that the business is in decline and even for the business that we are retaining, it is highly competitive. Every time a bill payment contract comes up with a major utility, there is pressure on An Post to reduce the price. The price that we charge is under significant pressure. We are a commercial entity and we must make commercial decisions.