Bernard Durkan (Kildare North, Fine Gael)
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Question 221: To ask the Minister for Communications, Marine and Natural Resources the extent to which he has developed his policy regarding the future of An Post; and if he will make a statement on the matter. [20354/05]

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. The policy is set out in the programme for Government. The challenge for the company is to develop a strategy which 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 volume of Government business especially in the areas of social welfare payments and savings products.

To ensure our post offices remain competitive and attractive to customers, future strategy must satisfactorily balance the social benefits of a nationwide post office network and ongoing electronic technology issues. With this in mind, I have asked the management of An Post to develop such a strategy. The company has started working on a new business model for the network which will involve a substantial upgrade of IT systems to offer electronic funds transfer 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 the An Post network. 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 hopes to move it to a conclusion by the end of the year.