John Browne (Wexford, Fianna Fail)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"recognises:

the challenges facing An Post in regard to electronic substitution, postal liberalisation and the competitive threats from private operators to both the post office and mail services;

the substantial progress made in restoring An Post to financial stability after a series of losses amounting to almost €70 million between 2001 and 2003, inclusive, and the need, because of the low margins in the postal industry, to be vigilant against slippage into a loss-making position again;

the putting in place of a new industrial relations framework following difficult negotiations between company management and trade unions in order to turn An Post into a vibrant customer-focused organisation and to ensure there will be no repeat of the scale of the losses experienced between 2001 and 2003;

the statutory underpinning of the postal network, as set out in the European Communities (Postal Services) Regulations 2002 which provides for universal service obligations, USO, including nationwide postal deliveries at uniform tariffs and, in recognition of the USO, the designation of An Post as the sole operator in part of the postal market;

the key role for the post office network, as set out in the programme for Government and in the White Paper on Rural Development building on the intrinsic strengths of the network in terms of nationwide reach, high customer footfall and strong relationship between postmasters and their customers; and

the high degree of automation already undertaken in the post office network, with 1,000 of the offices already computerised and with automated offices undertaking over 95% of post office business;

notes:

the payment of €20 million to An Post employees and postmasters in October which represents Sustaining Progress arrears;

the remuneration increase of 63% paid to postmasters since the end of 2000;

the number of extra contracts obtained for the post office network in recent years including the AIB contract, utility business payments and Garda fines;

the work undertaken by Mr. Eamonn Ryan, at the request of the Minister for Communications, Marine and Natural Resources, to facilitate improved interaction between An Post and postmasters in relation to strategic issues facing the network;

the commitment of the Government to the post office in terms of the arrangement with the Department of Social and Family Affairs for welfare payments and the NTMA for retail savings products; and

commends:

the commitment of the Government to the future development of the post office network, as evidenced by Government approval to the joint venture proposal with Fortis which will harness the existing strengths of the network to develop a financial services business providing a range of banking services, thereby providing an improved income stream for postmasters".

The Minister, Deputy Dempsey, regrets he is unable to be present.

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