Billy Timmins (Wicklow, Fine Gael)
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Question 231: To ask the Minister for Communications, Marine and Natural Resources the position regarding the serious threat to the future of post offices unless action is taken by the Government; the steps the Government is taking to same; and if he will make a statement on the matter. [13929/05]

Noel Dempsey (Meath, Fianna Fail)
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The Government is committed to a viable and sustainable rural post office network providing a range of services to meet consumer needs as set out in the programme for Government. This commitment is illustrated by the Government injection of €12.7 million into the network in 2003 to facilitate modernisation measures. The Government has strongly supported An Post initiatives such as the channelling of new utility and banking services through the network. In addition, An Post has introduced the new service delivery models to improve access to and take-up of post office services.

This network is geared towards customer demand in both urban and rural locations. Notwithstanding the commercial remit of the network, there is a clear recognition of the social benefits of a nationwide service. The network must be adaptable to changing circumstances and trends but the core objective of the Government and An Post continues to be the retention of access to post offices services in as many locations as possible in the manner which best meets consumer needs, whether services are provided via post office, postal agencies or the postpoint network. The main business developments in 2004 are the collection of Garda fines scheduled for 2005; Barclaycard credit card payments; 800,000 new bill payment transactions for the ESB; Tele 2 bill payments; and Dublin City Council commercial bin tags payments.

The automated network accounts for over 95% of An Post's counter business. This means that the 1,000 automated offices transact 95% of counter business while 475 non-automated offices undertake 5% of business. Nevertheless, An Post is now moving to undertake a pilot project which would see ten manual post offices automated to gauge the effect on business. Furthermore, An Post will undertake a fundamental reappraisal of the post office network. The objective of this exercise is to build on the existing strengths in terms of nationwide network, strong brand recognition and high footfall and to devise a suite of products and services to meet current and future needs of post office customers. This strategy will provide the road map for future service delivery throughout the network.

The level of remuneration for postmasters-postmistresses is a contractual matter between An Post and the individuals concerned. Contracts in place between An Post and members of the Irish Postmasters Union are of a commercial nature and are based in some cases on the level of transactions carried out by individual offices. The issue of social welfare payments being paid through the post office network is a matter for the Minister for Social and Family Affairs.