Liam Twomey (Wexford, Fine Gael)
Link to this: Individually | In context

Question 146: To ask the Minister for Communications, Marine and Natural Resources the initiatives he has taken to improve the viability prospects of An Post and post offices in the future; and if he will make a statement on the matter. [28074/05]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 233: To ask the Minister for Communications, Marine and Natural Resources the initiatives he has taken to improve the viability prospects of An Post and post offices in the future; and if he will make a statement on the matter. [28105/05]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 146 and 233 together.

The development and continued viability of An Post and the post office network is a matter for the board and management of An Post. There will continue to be a key national role for An Post, both in delivery of mails and as a quality service provider through its nationwide network of post office outlets. The market for traditional postal and post office services is changing globally and meeting customer needs has become more important than ever. To remain competitive, An Post needs to make the best possible use of its long established and trusted brand name and deploy its resources in a manner which continues to serve existing customers' needs and attracts additional customers for a range of new services.

There is 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 outlining the steps including comprehensive restructuring and cost savings, which are vital to the re-establishment of the company on a more secure financial footing.

I have emphasised the need for all stakeholders in the company to work together in a partnership approach and to utilise the industrial relations mechanisms of the State, where necessary, to agree and implement the recovery strategy to bring about the cost savings and productivity growth required to return the company to financial stability and prepare for the challenges ahead. 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.

As a commercial company, the challenge ahead for An Post 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 in 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.

Having an automated network is an important prerequisite to avail of the opportunities for additional business. At present 95% of An Post's business is conducted through automated offices. In order to gauge the impact of automation on business generation, I asked the company to initiate a pilot project to automate ten small post offices. This project is under way and the results of the project will be evaluated after the trial period has come to an end. Furthermore, at my request, An Post is 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.