Richard Bruton (Dublin North Central, Fine Gael)
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Question 102: To ask the Minister for Communications, Marine and Natural Resources his Department's policy in regard to the future development of An Post; and if he will make a statement on the matter. [26527/06]

Noel Dempsey (Meath, Fianna Fail)
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The future development and continued viability of An Post and its services is, in the first instance, a matter for the board and management of An Post.

I believe that there will continue to be a key national role for An Post, both in delivery of mails and as a quality service provider of Government and financial services through its nationwide network of post office outlets. However, it must overcome the many challenges it faces such as globalisation, liberalisation and developments in technology that are changing the way people communicate.

To place the company on a firmer financial basis to face these challenges, An Post prepared a Recovery Plan, incorporating details of proposed new Collection and Delivery arrangements, which are now in the process of being implemented.

With regard to the post office network, 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.

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. 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.