Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 276: To ask the Minister for Communications, Marine and Natural Resources the plans he has to retain the full rural post office network; the policy measures which he intends to implement; the discussions he has had with the EU Commission regarding the retention of the social welfare payments system by An Post; and if he will make a statement on the matter. [4589/05]

Noel Dempsey (Meath, Fianna Fail)
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The Government and the board of An Post are committed to the objective of securing a viable and sustainable rural post office network as set out in the programme for Government. The overarching objective continues to be the retention of post offices services, in as many locations as possible, in the manner which best meets consumer needs, whether via post offices, postal agencies or the PostPoint network.

It may be helpful to illustrate the current strength of the network. There are 1,000 automated post offices, 475 non-automated post offices and 160 postal agencies. Furthermore, An Post has established 3,000 PostPoint outlets in retail premises, of which 600 can be used for bill payment.

The future of the post office network has been subject to a number of studies and reviews in recent years and many of the recommendations have been implemented, including the provision in 2003 of Government equity, amounting to some €12.7 million to assist with the modernisation process. The post office network has a high volume of people passing through the premises, a recognised brand name and a countrywide retail network. The priority for all stakeholders is to build on these strengths to maintain and increase the amount of business conducted through the network in order to secure its future.

There is widespread recognition that the best development 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. As part of this strategy, An Post has secured additional business for the network, including bill pay facilities for the ESB andBarclays Bank credit cards, telephone top-ups through its PostPoint service and a contract with the AIB under which the bank's customers can access their accounts through the network. Further opportunities from both the public and private sectors are being actively explored by the company with a view to bringing on stream additional services, at the post office counter where possible.

The long-term future of the post office network can only be secured by meeting the demands of customers. In this regard, I have asked the Irish Postmasters Union and An Post to work in partnership with a view to securing existing business and pursuing new business opportunities at every opportunity. As outlined above, that strategy is being followed with some success.

I have had no discussions with the European Commission regarding the social welfare payments contract between An Post and the Department of Social and Family Affairs. Any such discussions are a matter for that Department.

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 277: To ask the Minister for Communications, Marine and Natural Resources the recommendations in the Flynn report on the post office network which have been implemented; the recommendations yet to be implemented; the action he is taking to implement the outstanding recommendations; and if he will make a statement on the matter. [4590/05]

Noel Dempsey (Meath, Fianna Fail)
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The Government is committed to a viable and sustainable nationwide post office network. Arising from this commitment, a number of reports, including the Flynn report, have examined modernisation of the network to provide a range of products and introduce service delivery channels which meet consumer needs. Key recommendations have either been implemented or continue to be addressed as part of the long-term strategy to secure the future of the post office network.

Following receipt of the Flynn report, the Government moved to underpin its commitment to the post office network by approving an equity injection of €12.7 million for An Post to facilitate the modernisation of the network. This was paid to the company in 2003. Increased postmaster scale payment remuneration has also been granted and the requirement to address the structure of such remuneration is the subject of ongoing discussions between the Irish Postmasters Union and An Post. Initiatives are under way to implement necessary restructuring of the post office network itself. In particular, non-automated sub-post offices are being converted to postal agencies offering an appropriate range of services, in particular social welfare payments and the sale of stamps.

Furthermore, and of particular importance, An Post continues to pursue new business opportunities for the network. Additional business won includes bill paying facilities for the ESB and Barclays Bank credit cards, telephone top-ups through its PostPoint service, and a notable flagship contract with the AIB under which the bank's customers can access their accounts through the post office network. Further opportunities from both the public and private sectors are being actively explored by the company with a view to bringing on stream additional services, at the post office counter wherever possible. An Post, with my Department's support, is also taking steps to ensure that it successfully retains existing core business, particularly in the fields of social welfare payments and savings services.

The Flynn report emphasised the need for the parties to explore avenues whereby the network can adapt to current and future realities. In this regard, there has been a clear recognition on all sides that the long-term future of the post office network can only be secured by meeting the needs of customers. Accordingly, I have asked the Irish Postmasters Union and An Post to work in partnership with a view to realising the twin goals of securing existing business and pursuing new business opportunities as they arise. As outlined above, that strategy is being followed with some success.