Mary Upton (Dublin South Central, Labour)
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Question 289: To ask the Minister for Communications, Marine and Natural Resources his plans to provide grant aid to ensure that post offices that serve local communities are viable; and if he will make a statement on the matter. [24440/06]

Noel Dempsey (Meath, Fianna Fail)
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While the development and continued viability of the post office network is, in the first instance, a matter for the board and management of An Post, this Government and the Board of An Post are committed to the objective of ensuring the continuation of a viable and sustainable nationwide post office network as set out in the Programme for Government. 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 and in this light, An Post is currently working on a financial services initiative which could see the development and expansion of the range of financial services that it can deliver through its network of post offices.

Following recent Government approval the board and management of An Post have now commenced exclusive negotiations with the company's preferred partner, Fortis, to expand the range of retail financial services available through the post office network with a view to increasing the levels of post office business. If the initiative proves to be successful, it could lead to a significant increase in post office business and contribute to the enhanced viability of the network.