Michael Lowry (Tipperary North, Independent)
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Question 211: To ask the Minister for Communications, Marine and Natural Resources if he will investigate the possibility of adopting a scheme, similar to that of the UK postal service, whereby rural post offices were guaranteed an income similar to the national minimum wage of €15,106 by bringing these smaller post offices under a public service obligation; and if he will make a statement on the matter. [6827/05]

Noel Dempsey (Meath, Fianna Fail)
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The Government and An Post share the objective of maintaining a nationwide post office network through a strategy of maximising the volume of viable business handled by the network. While it is my understanding that the UK Government has provided some funds for urban post offices under an urban reinvention programme, substantial funding for the UK network comes from historical Royal Mail surpluses which were not transferred to Government but were invested in Government gilts.

The Government here has already provided significant funding by way of a €12.7 million equity investment in 2003 to support the modernisation of the post office network and it is not envisaged that further public funding will be provided to An Post. The best way to sustain the post office network is to gear the network to provide a range of products and services which meet consumer needs. In this regard the company has had some success in winning new banking and bill paying contracts and these services are now available at the post office counter. The network also benefits from substantial existing contracts with the Department of Social and Family Affairs for social welfare payments and the National Treasury Management Agency for Government savings products.

With regard to the income levels of rural post offices, I understand that An Post is planning a review of the system of remuneration for post office agencies nationwide. This is essentially a matter involving commercial contracts between An Post and postmasters and one in which I have no function.