Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 238: To ask the Minister for Communications, Marine and Natural Resources his plans to discuss with An Post management its intention to honour its commitments to staff in respect of the national wage agreement; if his attention has been drawn to the upset of staff on the matter; and if he will make a statement on the matter. [17998/05]

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 amounting 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 a process brokered by the labour relations commission. An agreement on a viable recovery plan will enable An Post to deliver quality services to citizens, while at the same time providing sustainable, well-paid employment for its staff.