Dan Neville (Limerick West, Fine Gael)
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Question 122: To ask the Minister for Communications, Marine and Natural Resources his preferred option for the development of the postal services in the future; and if he will make a statement on the matter. [20723/06]

Shane McEntee (Meath, Fine Gael)
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Question 127: To ask the Minister for Communications, Marine and Natural Resources his policy, plans and ambitions for the enhancement and development of rapid, efficient and cost effective postal and parcel service in the future; and if he will make a statement on the matter. [20762/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 122 and 127 together.

I believe that there will continue to be a key national role for An Post in delivery of mails and parcels. However, over the coming years competition can be expected to increase in these sectors, whether from the privately owned express sector, from the large European public operators now looking for international business or from electronic substitution.

Already the parcels business is liberalised, with major international players operating in the Irish market. An Post now holds only 25% of the parcels market in this country. Liberalisation of the mail market in Ireland has already commenced and the second Postal Directive proposes that the postal sector is to fully liberalise across the EU on 1 January 2009 subject to political agreement, which, if achieved, would open up the letter post area to full competition. Therefore, in terms of dealing with the challenges facing An Post in the coming years, company management in conjunction with the trade unions, must deliver on restructuring agreements particularly in the mails area.

The development of the postal market requires the availability of competitive, high quality products. The current level of market opening has introduced new players with offerings that meet consumer needs and further market opening will provide further opportunities for new and existing players. The development of further competition allied with a modernised and customer-focussed An Post will provide the basis for the further development of the postal sector here.