John Perry (Sligo-Leitrim, Fine Gael)
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Question 111: To ask the Minister for Communications, Marine and Natural Resources when he expects An Post to be in a position to meet the challenge of full liberalisation; and if he will make a statement on the matter. [6637/06]

Noel Dempsey (Meath, Fianna Fail)
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Liberalisation of the postal sector, as set out in two European Union postal directives, has already commenced in Ireland with some sectors such as outbound international mail already fully subject to competition. An Post, like all other postal operators, will face more intense competition on full opening of the market, which the European directives propose to happen, subject to political approval, on 1 January 2009. It is imperative, therefore, that An Post is on a secure financial footing to successfully meet the challenges of competition.

The key imperative for An Post is to be in a position to offer products and services which meet customer needs in a competitive environment. The recently agreed restructuring plan will play an important part in the process of placing An Post on a more secure financial footing. It is imperative that all sides now work together to ensure that the plan is fully implemented.

Billy Timmins (Wicklow, Fine Gael)
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Question 112: To ask the Minister for Communications, Marine and Natural Resources if he has issued instructions in regard to the future development of the postal services with particular reference to opening or closing post offices or extending or reducing the scale of services available through An Post; and if he will make a statement on the matter. [6646/06]

Noel Dempsey (Meath, Fianna Fail)
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This Government, as clearly set out in the programme for Government, and the board of An Post, are committed to the objective of securing a viable and sustainable nationwide post office network. The future 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. In regard to the closure of post offices specifically, this is an operational matter for the company and one in which I have no function.

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.

I have 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 a new 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.