Bernard Durkan (Kildare North, Fine Gael)
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Question 238: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the rapidly diminishing network of post offices and sub-post offices throughout the country; if he accepts the potential damage this gradual erosion does to the post office services, its network, its morale and viability; his or the Government's policy in regard to the future of the postal services here in view of the advent of deregulation and consequent competition; if he has in mind proposals in the context of the retention and upgrading of the post office services generally or in the context of the national development plan with a view to delivery of a modern, efficient and reliable service to the consumer; and if he will make a statement on the matter. [5724/07]

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 and one in which I have no statutory function.

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. 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.

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. 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. With respect to the liberalisation of postal 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.

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.

Bernard Durkan (Kildare North, Fine Gael)
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Question 239: To ask the Minister for Communications, Marine and Natural Resources the nature of discussions he has had with An Post with a view to clarification of the future role of the post office services having regard to deregulation and the ongoing closure of post offices with consequent implications for the future and integrity of the service; and if he will make a statement on the matter. [5462/07]

Noel Dempsey (Meath, Fianna Fail)
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I refer the Deputy to my reply to Question No. 125 of 14th February 2007.