Willie Penrose (Westmeath, Labour)
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Question 148: To ask the Minister for Communications, Marine and Natural Resources if he is giving due consideration to apply a public service obligation to the post office network to computerise the smaller offices and to guarantee a minimum income or if he is considering other positive measures in this regard; and if he will make a statement on the matter. [37051/05]

Noel Dempsey (Meath, Fianna Fail)
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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, the Government recognises 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.

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 Government has no plans for a public service obligation in this regard.

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.

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 1,000 automated offices transact 95% of counter business with the remaining non-automated offices undertaking 5% of business. This figure 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 ground 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 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, 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.

I have also asked the company to ensure 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 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. With regard to the income levels of post offices, the remuneration of postmasters is a contractual matter for An Post and postmasters.