I propose to take Questions Nos. 15, 51, 52 and 123 together.
As the House is already aware, An Post is in a serious financial situation. The company's accumulated losses to the end of 1991 amounted to some £15 million and by the end of 1993 could have grown to some £40 million. I am seriously concerned about An Post's loss making situation and I am anxious that remedial measures be put in place at an early date without recourse to State subsidy or general increases in postal charges. The main reasons for An Post's problems are increasing operating costs, low mail volume growth and competition from modern telecommunications services and couriers. Staff costs, which account for 80 per cent of total operating costs, have increased sharply in recent years despite substantial staff reductions.
In February 1991 An Post announced their viability plan, with the objective of achieving savings of £24 million by 1995. In September 1991 my predecessor requested An Post, inter alia, to withdraw their viability plan as originally presented, and to put in place the means by which they can meet their statutory financial targets, the immediate priority being to agree on measures with the unions to enable the company to achieve break-even by the end of 1992. The necessary company/union negotiations are being conducted under the auspices of the Labour Relations Commission and while some progress has been made to date, I am not satisfied that sufficient progress has been made to enable the company to break even by the end of 1992.
An Post have suspended consideration of their proposals to close sub-post offices and to instal roadside letterboxes pending the outcome of a socio-economic consultancy study. The consultants' report has been finalised and I will be examining the report in detail. As regards the closure of sub-post offices, there is no list as such. An Post have identified criteria for closure of sub-post offices, which have formed part of the consultancy study. Closures would depend on the outcome of consultations with the Irish Postmasters Union and on the uptake by postmasters and postmistresses of severance terms. In due course I will arrange for publication of the consultants' report and to make it available to Members of the Houses of the Oireachtas.