Arthur Morgan (Louth, Sinn Fein)
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Question 86: To ask the Minister for Communications, Marine and Natural Resources his views on the denial to An Post workers of full backdated wage increase under the terms of Sustaining Progress; and if he will make a statement on the matter. [19968/05]

Noel Dempsey (Meath, Fianna Fail)
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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, which 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 have been 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 was addressed in a Labour Relations Commission, LRC, brokered process. The LRC-appointed assessors issued their report last week. I understand that the report concludes that An Post is currently in a position to pay a 5% payment under Sustaining Progress and that the company has undertaken to do so by the end of this month. I also understand that the assessors' report finds that An Post cannot afford any further elements of Sustaining Progress or the mid-term review of Sustaining Progress, other than in the context of securing finalisation on rationalisation and restructuring requirements. I understand that the An Post unions are in disagreement with the findings of the report and that the matter will be referred to the Labour Court.

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.