Mary Upton (Dublin South Central, Labour)
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Question 112: To ask the Minister for Communications, Marine and Natural Resources his views on recently published submissions from the Irish Postmasters Union relating to financial supports for postmasters and the local post office network to enable the retention of a viable network across the country and the full discharge of the public postal service obligation; and if he will make a statement on the matter. [3605/05]

Noel Dempsey (Meath, Fianna Fail)
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This Government and the board of An Post are committed to the objective of securing a viable and sustainable nationwide post office network as set out in the programme for Government. I have met the Irish Postmasters Union and listened with interest to its views on the future development of the network. My officials continue to be in regular contact with the management of An Post to assist with securing and developing our post office services.

The post office network has been the subject of a number of studies and reviews in recent years. Many of the recommendations arising from these reviews have been implemented, with particular regard to winning new business, including extra banking and new utility business. The Government has already provided an equity injection of €12.7 million for An Post to facilitate the modernisation of the post office network. The equity injection was paid to the company in 2003.

With regard to the recent publications from the Irish Postmasters Union concerning financial supports for postmasters, this is primarily a matter for the company and the Irish Postmasters Union. However, I understand the Flynn review recommended increases for postmasters of between 12% and 19%, with effect from January 2001. These increases have been fully implemented as have national pay awards, where applicable, with the exception of Sustaining Progress, for which the company has pleaded inability to pay. Contracts in place between An Post and members of the Irish Postmasters Union are of a commercial nature and are based, in most instances, on the level of transactions carried out by individual offices.

There is widespread recognition that the best strategy to sustain the network is for An Post to continue adapting to its customer needs within the financial constraints in which it now finds itself. In this regard I have asked the Irish Postmasters Union and An Post to work in partnership to maximise their efforts to secure the existing business and to pursue new business at every available opportunity.