Olivia Mitchell (Dublin South, Fine Gael)
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Question 87: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the fact that An Post employees have only received the first phase of the Sustaining Progress agreement and have not received any cost of living increase since 1 February 2003, while other State and semi-State employees have received increases and applicable benchmarking. [11534/05]

Noel Dempsey (Meath, Fianna Fail)
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I am aware that An Post employees have not received increases provided for under the Sustaining Progress agreement from November 2003 to date. An Post is a commercial State body and the question of pay increases in the company is one in which I have no function. An Post has a remit to be financially viable and, following significant losses that amounted to €43 million in 2003 alone, An Post management invoked the inability to pay clause provided for in Sustaining Progress.

The key challenge for the company is to return to long-term financial stability. In this regard, An Post unions and management are involved in intensive negotiations with the assistance of the State's industrial relations machinery in a bid to agree a recovery plan that will put the company on a sound footing. The question of Sustaining Progress related payments is being addressed in the Labour Relations Commission-brokered process. An agreement on a viable recovery plan will enable An Post to deliver quality services to our citizens, while at the same time providing sustainable well-paid employment for its staff.