Kathleen Lynch (Cork North Central, Labour)
Link to this: Individually | In context

Question 108: To ask the Minister for Communications, Marine and Natural Resources the proposals for An Post to establish a new banking operation in conjunction with a Belgian-Dutch financial services group (details supplied); and if he will make a statement on the matter. [6734/06]

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 113: To ask the Minister for Communications, Marine and Natural Resources the number of bodies or agencies with whom discussions have taken place in regard to possible integration of services with An Post; if an evaluation has been done of the most likely compatible joint service providers with the prospect of ensuring the continuous viability of An Post; and if he will make a statement on the matter. [6610/06]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 108 and 113 together.

I asked An Post to bring forward a strategy for the long-term development of the post office network that satisfies the needs of existing customers, while attracting new customers into the post office. The overriding objective is to put the network on a long-term financially sustainable footing while maintaining a nationwide post office network.

An Post appointed consultants in early 2005 to identify a potential joint venture partner to establish and operate a jointly owned company to supply a wide range of retail financial services through the An Post branch network using the An Post brand and other An Post assets. Following a detailed process which saw 28 initial expressions of interest, the company identified a preferred bidder late last year.

The Government has recently approved the board and management of An Post to enter exclusive negotiations with the company's preferred bidder 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. This proposal provides the company with the opportunity to generate a substantial and strategically important new revenue stream which could support the network of rural and urban post offices. It would also aim to support and grow the income of Irish postmasters. An Post is now entering exclusive negotiations with the preferred bidder and any proposal arising from the negotiations will be subject to Government approval.