Denis Naughten
Question:71 Mr. Naughten asked the Minister for Public Enterprise the submission made by her Department to the European Commission with regard to State funding for An Post; and if she will make a statement on the matter. [10814/02]
Written Answers. - Post Office Network.
On 27 July 2001, the Government approved an equity injection of €12.7 million to An Post, spread over two years, to ensure that a network of post offices can be maintained throughout the State, delivering a range of services, particularly access to Government services. The approval of the European Commission was requested to the equity injection under Article 86(2) of the treaty which provides that competition rules shall not be used to obstruct the performance of undertakings providing services of general economic interest. The provision of working capital for An Post by the State is permitted in national legislation under section 31 of the Postal and Telecommunications Services Act, 1983. The European Commission recently indicated that it is proposed to approve the equity injection on the basis of the submission by the State.