Batt O'Keeffe (Cork South Central, Fianna Fail)

The Minister, Deputy Noel Dempsey, regrets he cannot address the House this afternoon.

Following from yesterday's interesting debate, it is clear we are all agreed on the importance of the postal service and the post office network. A vibrant, efficient postal service is an important aspect of any successful economy and it is vital therefore that An Post continues to return to a secure financial footing and prepares to meet all the challenges ahead. The Government is pleased to note from yesterday's proceedings that all sides of the House support An Post and its staff in their day-to-day business and their endeavours to support, develop and sustain the postal service and the post office network.

The Government recognises the critical importance of having a nationwide, reliable and efficient postal service and, as set out clearly in the programme for Government, it and the board of An Post remain committed to the objective of ensuring a viable and sustainable nationwide post office network.

We recognise a key role for An Post in the years to come, both in terms of the delivery of mail and as a quality service provider of government and financial services. Recent developments on the An Post financial services venture in association with the Belgian bank, Fortis, will go a long way towards helping An Post deliver on this objective. Much work has been put into the initiative and credit must go to all involved in the process. On that note, I join my colleagues, the Minister of State, Deputy Browne, and Deputy O'Flynn, in urging the Irish Postmasters Union, IPU, to re-examine the position it has recently taken on the joint venture and to consider the long-term benefits such a deal could afford to its members, the postmasters, An Post and post office customers across the country. A successful roll-out of the joint venture would undoubtedly be good for business and would thereby help prepare An Post and its agents for full market opening. An Post has an extensive retail network and a trusted brand name, which it must utilise completely to compete effectively in a liberalised market.

Liberalisation is the biggest challenge facing An Post. The company is wisely preparing for full market opening and competition from 2009. The Government remains confident that once the initial challenges have been overcome, full competition in the postal market will ultimately be good for both An Post and Irish consumers. It is, however, imperative that the company restructures itself effectively and that management and trade unions in An Post work together to transform the company into an efficient and modern service provider by implementing the agreed restructuring programme.

This is not the time for complacency. By embracing the necessary changes in a positive manner, management and staff in An Post will help to move the company in the direction it needs to go if it is to maintain current contracts and compete for further business. The existing contract with the Department of Social and Family Affairs regarding welfare payments, for example, is very important to the company, but given recent developments in Europe, it is likely that, in future, this contract will have to be put out to tender and that An Post will face stiff competition in its effort to retain it.

The development of the postal market requires the availability of competitive, high quality products. The current level of market opening has introduced new players with offerings that meet consumer needs and further market opening will provide further opportunities for new and existing market players. The development of further competition, allied with a modernised and customer-focused An Post, will provide the basis for the further development of the postal sector.

There was some discussion yesterday regarding quality of service standards in terms of mail deliveries, and while I accept that the situation is not yet wholly satisfactory, An Post is working closely with ComReg to resolve the issues that arise. This will be of particular importance in the context of liberalisation.

The Government continues to support An Post. Given the urban-rural divide, the provision of high quality, competitively priced postal services, while ensuring the protection of universal service in a liberalised market, will be of critical importance. We therefore intend to maintain the postal services on a five-day week basis. It is fair to say we all recognise the importance of the postal sector to the country as a whole and to individual towns and villages. The Government will continue to support An Post and help it to become a successful, efficient and dynamic organisation, operating successfully and profitably in a changing environment.

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