Written answers

Tuesday, 15 February 2005

Department of Communications, Energy and Natural Resources

Postal Services

9:00 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)
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Question 280: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to An Post's social obligations; and the measures he proposes to introduce to assist the company meet these obligations. [4723/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The universal service obligation, which includes nationwide postal delivery requirements, is enshrined in EU and Irish law and is a statutory requirement for An Post, as the designated universal service provider. Furthermore, the European Communities (Postal Services) Regulations 2002, establish the area of the postal market solely reserved for universal service providers and this reserved area assists An Post to fulfil its universal service obligations.

In regard to the post office network, the Government has already provided significant funding by way of a €12.7 million equity investment in 2003 to support modernisation of the network. The network also benefits from significant contracts with the Department of Social and Family Affairs for social welfare payments and the National Treasury Management Agency for Government savings products.

It is not envisaged that further public funding will be provided to An Post. The best way to sustain the post office and postal delivery networks is to gear the networks to provide a range of products and services which meet consumer needs. Part of the challenge at this point is for An Post unions and management to agree and implement a change programme to allow necessary restructuring to take place.

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