Bernard Durkan (Kildare North, Fine Gael)
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Question 146: To ask the Minister for Communications, Marine and Natural Resources if he intends to issue any policy directive in regard to the future of the post office network having particular regard to his preferred options as expressed in Dáil Éireann; and if he will make a statement on the matter. [19828/05]

Noel Dempsey (Meath, Fianna Fail)
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The Government and the board of An Post are committed to the objective of securing a viable and sustainable nationwide post office network through a strategy of maximising the volume of both public and private sector business handled by the network. This is set out in the programme for Government.

The challenge for the company is to develop a strategy that satisfies the needs of existing customers, while attracting new customers into the post office. An Post has already had some success winning new business and continues to benefit from a considerable amount of Government business, especially in the areas of social welfare payments and savings products.

To ensure that our post offices remain competitive and attractive to customers, future strategy must satisfactorily balance the social benefits of a nationwide post office network and the ongoing electronic technology issues that now face the future of the network. With this in mind, I have asked the management of An Post to develop such a strategy and the company has started working on a new business model for the network, which will involve a substantial upgrade of IT systems in order to offer electronic funds transfer, EFT, functionality to social welfare recipients and a wider suite of financial and other services to new and existing customers.

An Post has just launched a process seeking proposals from financial institutions with a view to developing and expanding the range of financial services available through An Post. This development presents an important opportunity for the counters service to grow, win new lines of business and acquire the technology and other resources necessary to face the challenges of the future. The company has recruited advisers to assist with the process and hope to move it to a conclusion by the end of the year.