Tom Hayes (Tipperary South, Fine Gael)
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Question 158: To ask the Minister for Communications, Marine and Natural Resources the extent to which he has influenced policy direction in An Post with particular reference to retaining the maximum number of post offices and sub-post offices incorporating modern technology with the view to the delivery of modern, efficient and cost effective services to a growing customer base; and if he will make a statement on the matter. [2047/06]

Damien English (Meath, Fine Gael)
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Question 202: To ask the Minister for Communications, Marine and Natural Resources the extent to which he has ordered or will order the upgrading of the maximum number of post offices and sub-post offices with a view to ensuring electronic transmission capability throughout the services; and if he will make a statement on the matter. [2048/06]

John Deasy (Waterford, Fine Gael)
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Question 208: To ask the Minister for Communications, Marine and Natural Resources his directions or instructions to An Post with a view to broadening the extent, scale and scope of the services available through post office and sub-post office network with a view to identifying the full extent of likely services to be available in the future; and if he will make a statement on the matter. [2044/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 158, 202 and 208 together.

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 development of the post office network and the delivery of services through that network is the responsibility, in the first instance, of the board and management of the company.

This Government, as clearly set out in the programme for Government, and the board of An Post, is committed to the objective of securing a viable and sustainable nationwide post office network. Notwithstanding the commercial remit of An Post, there is a 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 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, economic ally 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 its 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.

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. In this light, An Post is currently working on an initiative which would see the development of An Post Financial Services, APFS. Its aim is to supply a wide range of retail financial services through the branch network. If successful, it could lead to a significant increase in post office business and contribute to the viability of the network.