Noel Dempsey (Meath, Fianna Fail)
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The operation of An Post is a matter for the board and management of the company. 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.

As clearly set out in the Programme for Government, it is the Government's objective to maintain the largest economically sustainable post office network possible. Notwithstanding the commercial remit of An Post, there is a clear Government recognition of the social benefits of maintaining the nationwide post office network. The challenge for all stakeholders in An Post is to generate sufficient profitable business to maintain the network at its current size. Management at An Post are aware of Government policy on this matter.

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. 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.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 187: To ask the Minister for Communications, Marine and Natural Resources the role he sees for the postal services in the future; if the trend to date is in line with his policy; and if he will make a statement on the matter. [5451/07]

Noel Dempsey (Meath, Fianna Fail)
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The future provision of postal services will be, in the first instance, a matter for An Post and other service providers.

With respect to mail services, 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.

Liberalisation of the mail market in Ireland has already commenced and the Commission's draft third Postal Directive proposes that the postal sector is to fully liberalise across the EU on 1 January 2009 subject to political agreement. The draft directive is currently being discussed at Council.

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.