Bernard Durkan (Kildare North, Fine Gael)
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Question 270: To ask the Minister for Communications, Marine and Natural Resources his preferred options for the provision of postal services in the future and the retention of the maximum number of post offices; and if he will make a statement on the matter. [34675/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 311: To ask the Minister for Communications, Marine and Natural Resources if he proposes to issue any policy directive in regard to the future of An Post and the post offices including sub-post offices, having particular regard to his preferred options in the future; and if he will make a statement on the matter. [34960/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 270 and 311 together.

I believe 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. 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. As a commercial company, the long-term viability and financial security of the company is the responsibility of the board and management of An Post.

With this in mind, the board and management of An Post have presented a recovery plan, incorporating details of proposed new collection and delivery arrangements, 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. It sets out the way forward for the company. Adoption of restructuring that delivers real change is the only way that An Post can re-establish itself on a firm financial footing.

With regard to the post office network, 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. In addition to the post office network, An Post has also established 2,864 Postpoint outlets in retail premises of which 600 can be used for bill payment.

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 to 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. Indeed, 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.

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.