Richard Bruton (Dublin North Central, Fine Gael)
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Question 377: To ask the Minister for Communications, Marine and Natural Resources the service obligations which the Government requires of An Post, for example in respect of universal delivery, the maintenance of a network of post offices and so on which would deviate from normal commercial criteria which might otherwise be applied by the business; the way in which the Government makes allowance for these requirements in setting expectations for its financial performance; and if he will make a statement on the matter. [5125/06]

Noel Dempsey (Meath, Fianna Fail)
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As a commercial State company established under the Postal and Telecommunications Services Act 1983, An Post is legally obliged to be operated to generate revenues to meet all current charges, to generate a reasonable proportion of its capital requirements and to remunerate capital. The Government and the board of An Post are committed to the objective of securing a viable and economically sustainable post office network and a postal network for mail and parcel delivery attuned to the needs of its wide range of customers. An Post operates within a regulatory framework as enshrined in EU and Irish law and therefore the universal service obligation, which includes nationwide postal delivery requirements, is a statutory requirement for An Post as the designated universal service provider. This is set out in SI 616 of the European Communities (Postal Services) Regulations 2002. Furthermore, the regulations establish the area of the postal market solely reserved for universal service providers and this reserved area assists An Post in fulfilling its universal service obligations. The area of the market for post that is reserved to An Post is postal items weighing less than 50g or costing less than two and a half times the standard tariff. In regard to the post office network, An Post has 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.