Noel Dempsey (Meath, Fianna Fail)

The deal between Fortis, the Belgian bank, and An Post will open the use of the postal network for financial services generally, such as insurance and so forth, as well as banking. That will operate throughout the post office network. Obviously, the post offices that are already computerised and electronically enabled will be in a position to do that straight away. Not all post offices will carry the full range of services but all of them will act as agents for the new company set up by An Post and Fortis. The answer to the Deputy's first question is that there will be a full suite of financial services, in the broadest sense, available in the local post office from early next year.

As part of that deal Fortis has agreed to enhance the capability of some post offices in the network to operate the electronic transfer systems. A large proportion of post offices have that capability at present but upgrades will be required due to the new systems. That will facilitate social welfare direct electronic transfers. In the negotiations that were carried out with the bank we told An Post that it must be mindful of the needs of the Department of Social and Family Affairs as well.

I have not formed a view on the optimum number of post offices. That is a matter for the board of An Post. It is true that we have a more scattered population, which is the reason we have so many post offices. Nevertheless, the number of post offices in this country is far higher than is the case anywhere else in Europe.

With regard to new services, the deal with Fortis will mean that a suite of financial services will be provided by post offices. The Government is constantly examining the possibility of new services being provided through the post office network. Some years ago I provided in legislation that something such as the register of electors could be compiled through the post office network.

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