Bernard Durkan (Kildare North, Fine Gael)
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Question 281: To ask the Minister for Communications, Marine and Natural Resources the discussions he has had with management and unions representing the postal service with a view to developing an enhanced role and function thereby ensuring the medium and long-term viability of the postal service; the retention of the maximum number of post offices and sub-post offices; and if he will make a statement on the matter. [28156/05]

Noel Dempsey (Meath, Fianna Fail)
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The development and continued viability of An Post and the post office network, is in the first instance, a matter for the board and management of An Post. An Post plays a key role both in delivery of mails and as a quality service provider through its nationwide network of post office outlets. However, there is universal agreement that change is required if the postal services of An Post are to adapt to the modern business environment and to continue to offer a top-class nationwide delivery service to the customer into the future.

With this in mind, the board and management of An Post have presented a recovery plan which is vital to the re-establishment of the company on a more secure financial footing. The plan has assumed significant changes in work practices, tariff increases and the payment of wage increases, and sets out the way forward for the company. In order to progress the change agenda, I have met with representatives of An Post management and unions on several occasions over the past 12 months. I have listened with interest to the views of all parties concerned in regard to the future of the network. I have emphasised to all parties the importance of an early start to the company's modernisation and that both sides must engage directly in order to resolve long-standing and deep-seated problems besetting the company.

On the matter of retention of the maximum number of post offices and sub-post offices, the Government and the board of An Post are committed to the objective of securing a viable and sustainable nationwide post office network as set out in the programme for Government. 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 and, in the European context, Ireland still has the highest number of post offices per head of population.

Additionally, in light of the need to ensure the long-term viability of the network, An Post is working on a new initiative which could see the development and delivery of a wide range of retail financial services through the branch network. If successful, it could lead to a significant increase in post office business. An Post has initiated a process to seek a joint venture partner for this new initiative.