Bernard Durkan (Kildare North, Fine Gael)
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Question 231: To ask the Minister for Communications, Marine and Natural Resources his views on whether it is intended to close any post offices or sub-post offices; and if he will make a statement on the matter. [28102/05]

Noel Dempsey (Meath, Fianna Fail)
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As clearly set out in the programme for Government, this Government and the board of An Post are committed to the objective of securing a viable and sustainable nationwide post office network. Notwithstanding the commercial remit of An Post, there is clear Government recognition of the social benefits of maintaining the nationwide post office network. Accordingly, An Post development strategies for the network continue to take full account of these social benefits.

The An Post network comprises the single largest number of retail outlets in the country. In the European context, Ireland still has the highest number of post offices per head of population. In recent years some network restructuring has been undertaken. This activity is in line with similar trends across Europe. Specifically, in relation to the closure of post offices or sub-post offices, it is only when a suitable candidate for a vacancy cannot be found or where there are no applicants that a post office is closed.

It is the Government's objective to maintain the largest, economically sustainable post office network possible. The challenge for all stakeholders in An Post is to generate sufficient profitable business to maintain the network at its current size. While the Government will support the network in any way it can and has demonstrated its commitment in a tangible fashion, with a €12.7 million capital injection in 2003, the way forward is for An Post to enhance existing services and, building on existing strengths, develop new product offerings.

The network has a high footfall and to capitalise on these advantages it is essential that existing and new services are developed to meet customer requirements. The network also has the capacity and potential to deliver more private business, especially in financial services, and opportunities are actively being pursued by An Post in this area. On foot of substantial investment in computerisation, a significant amount of extra business has already been obtained for the network in terms of banking and utility business. At present, 95% of An Post's business is conducted through automated offices. Also under way is a new pilot scheme to automate a total of ten smaller post offices. This will allow the company to determine to what extent, if any, further investment in automation might be justified. The results of this project will be evaluated at the end of the trial period.

I have also asked the company to ensure that any strategy for the development of the company should ensure the long-term viability of the post office network and in this light, An Post is currently working on a new initiative which could see the development and expansion of the range of financial services that it can deliver through its network of post offices. If successful, it could lead to a significant increase in post office business and contribute to the viability of the network.