Peter Kelly (Longford-Roscommon, Fianna Fail)

The Government recognises the challenges facing An Post with electronic substitution, postal liberalisation and competitive threats from private operators. It also recognises the substantial progress made in restoring An Post to financial stability after a series of losses between 2001 and 2003 amounting to €70 million. With low margins in the postal industry, we need to be vigilant against another slip into a loss-making position. The putting in place of a new industrial relations framework, following difficult negotiations between management and trade unions, turned An Post into a vibrant and customer-focused organisation.

The statutory underpinning of the postal network is set out in the EU postal services regulations. These provide for a universal service obligation, including nationwide postal deliveries at uniform tariffs. In recognition of the universal service obligation, An Post has been designated the sole operator of the postal market. The key role for the post office network is also set out in the programme for Government and the White Paper on Rural Development. It is hoped to build on the strengths of the network to ensure nationwide reach and high customer footfall and to continue the strong relationship between postmasters and their customers.

Automation of the network's office has already been undertaken with 1,000 post offices already computerised and undertaking over 95% of An Post's business. I commend the commitment of the Government to the future development of the post office network as evidenced by the Government's approval on the joint venture proposal with Fortis. This 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 post office network is a very valuable asset. It comprises 995 automated and 404 non-automated post offices, 161 postal agencies and 2,567 post point outlets. To gauge the impact of automation on business generation, the company recently completed a pilot automation project for ten small post offices. Carrickboy post office in County Longford was one of the ten pilot projects and, according to all parties, it was a great success.

Postmasters are hardworking and give a friendly personal service. In Longford town, the post office is a hub of activity with a great buzz of business about it. The postmaster and staff are second to none and it is a pleasure to deal with them. The postmen and postwomen project a good image for the company. It is good to meet them on their rounds, especially early in the morning. They are always in good form and ready to help the customer in any way they can. Edgeworthstown, Granard, Ardagh, Carrickboy, Ballymahon, Lanesborough, Newtownforbes and Drumlish have vibrant local post offices. People should be more aware of the services available at their local post office. By supporting the business of the local post office, it will help the community's development.

The programme for Government is committed to An Post continuing to play a key role in mail delivery and as a provider of Government and financial services. It must still, however, remain competitive. The successful running of An Post is a matter for management and staff — unity is the key to success. It is crucial that the management and staff of An Post work together for the good of the company. A fair wage must be paid to its workers and we must come up with a formula where wages are good while a competitive service is provided. The issue of postmasters' remuneration must still be resolved.

Members of the public must support their local post office and find out what services are available there. Sometimes when it is too late people regret not having taken action. Business is business and it needs public support. The public should avail of local services. After travelling miles one will probably find that next door is the local post office and the friendly postmaster or postmistress who can provide service as good as, if not better than, anybody else. I look forward to the continuation of the debate. I commend the Government and all of us who are committed to the postal service. We realise the great asset we have with so many retail outlets. Let us put our heads together and put it all to good use for the benefit of everybody.

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