Enda Kenny (Mayo, Fine Gael)
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Question 81: To ask the Minister for Communications, Marine and Natural Resources his policy in regard to the future of An Post and the retention of the maximum number of upgraded post offices throughout the country; and if he will make a statement on the matter. [38776/06]

Noel Dempsey (Meath, Fianna Fail)
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The future of the post office network and the upgrading of post offices are a matter in the first instance for the board and management of An Post. As set out clearly in the Programme for Government, 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. The precise number of post offices is a matter in the first instance for the board and management of the company and one in which I have no function. The challenge for stakeholders in An Post is to generate sufficient profitable business to maintain the network at its current size.

It was in this context that I 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.

It was to this end that the Government recently gave its approval for An Post to enter into a joint venture agreement with Belgian Bank, Fortis, to set up a retail banking business. This will entail the provision of a range of financial services operated through the post office branch network, using the An Post brand and other An Post assets. Key to the Government approval of this joint venture was that it not only offers a real opportunity for the growth and development of An Post and the post office network but that it will, in time, greatly benefit the income streams of postmasters.

With regard to the automation of post offices, the company has recently completed a pilot project in which ten smaller post offices were fully automated.

It is intended to evaluate the business generated and the income gains in these newly automated offices, in order to see if there is a justified commercial case for further automation of non-automated offices. There are currently 386 non-automated post offices in the country which account for just over 2% of the current business of the network.