Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 128: To ask the Minister for Communications, Marine and Natural Resources the number of post offices in place on 1 October 2005; the number on 1 January 1999; the progress being made towards computerisation; the number of post offices currently linked in this system; his views on whether the post office service is a vital link especially in rural areas; and if he will make a statement on the matter. [27826/05]

Noel Dempsey (Meath, Fianna Fail)
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On 1 January 1999 there were 1,911 post offices in the post office network. As of 1 October last, there were 1,425 post offices. The Deputy should note that of this reduction of 486 in the number of post offices, 306 can be accounted for by postmasters who availed of the terms of the agency conversion scheme since its inception in 2002. The Deputy should also note that, to date, An Post has established 2,864 postpoint outlets in retail premises of which 600 can be used for bill payment.

The Government and An Post share the objective of maintaining a viable nationwide post office network through a strategy of maximising the volume of both public and private sector business handled by the 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.

With regard to computerisation of non-automated offices, the automated network accounts for over 95% of An Post's counter business. This means that the 996 automated offices transact 95% of counter business while 429 non-automated offices undertake 5% of business. This figure clearly illustrates the level of business transacted by individual non-automated offices. The current level of automated coverage is considered by An Post to be extremely comprehensive by any objective standard and this level of coverage makes it difficult to justify on either customer service or economic grounds the extension of automation to all offices, regardless of their location or business volumes.

Automation of the post office network was completed in 1997. It is, therefore, only in very exceptional circumstances, such as an existing automated office closing and its equipment being transferred to a suitable neighbouring location which transacts significant volumes of welfare business, that offices are automated today. Nevertheless, I have asked An Post to undertake a pilot project to automate a selected number of non-automated offices to gauge the effect on new business. Ten post offices have been selected for automation and the results of the pilot project will be evaluated following the trial period.