Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 89: To ask the Minister for Communications, Marine and Natural Resources if he has conveyed to An Post or the postal union representatives his preferred options and structures for the development and delivery of the postal service with particular reference to the optimum number of post offices or sub-post offices expected to be upgraded electronically in the context of the future role for An Post in the letter and package delivery service [11434/07]

Noel Dempsey (Meath, Fianna Fail)
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Matters relating to the development and delivery of postal services and the electronic upgrading of post offices are a matter, in the first instance, for the Board and management of An Post and ones in which I have no statutory function.

However, I asked the company to ensure that any strategy for the development of the company should ensure the long-term viability of the network.

It was to this end that the Government, in September last year, 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.

The company recognises that having an automated network is an important prerequisite to availing of the opportunities for additional business. In this context, 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.

With respect to mail services, I believe there will continue to be a key role for An Post in the delivery of mail and parcels. With full market opening from 2009, subject to political agreement, competition in the market can be expected to intensify. Therefore, in terms of dealing with the challenges it faces, An Post must deliver on restructuring agreements, particularly in the mails area.