Dáil Éireann Debate, Tuesday - 29 June 2004
21 Mr. Broughan asked the Minister for Communications, Marine and Natural Resources the position with regard to restructuring An Post in view of the company’s recent announcement that it recorded operating losses of €43 million in 2003; and if he will make a statement on the matter. [19194/04]
View answerDeputies will be aware of the precarious financial situation that I outlined in some detail to the House on 23 March in regard to An Post. On top of losses in 2001, the company has lost €60 million approximately between 2002 and 2003 and has forecast further losses this year. Losses on this scale and of this duration are simply unsustainable. It is neither in the interests of the company nor its employees or customers that the situation remains unchecked. If the company is to return to profitability, it needs to be restructured. If this is to be a success, it is crucial that all stakeholders play a constructive part in this process.
The current IR issues in An Post have been simmering for some time. The problems in An Post are long-standing and deep-seated and it is clear that the solution to the current issues must put the company on a long-term sustainable financial and operational footing. The full scale of the financial problems facing An Post became clear to myself and my Department during the second half of 2002 and to the then management of An Post sometime later. It is important that all stakeholders fully recognise the seriousness of the financial position and the threat this represents to the future of the company.
Once the scale of the financial difficulties became clear last summer a recovery strategy was approved by the board and presented to me. The strategy sets out a roadmap to return An Post to profitability by 2005. It includes significant restructuring and job losses amounting to approximately 1,500. However, buy-in from the unions is crucial to agreement and implementation. This has not been an easy process — change is not easy. Following the industrial dispute last March, the Labour Relations Commission put forward a framework to resolve the differences between management and unions. Both parties are currently in talks under the auspices of the Labour Relations Commission. Although these discussions were due to finish in May, it was agreed by all parties to extend the process given the progress, albeit slow, that was being made. The talks are continuing and while some progress has been made, substantial issues remain to be resolved.
It is in all our interests that An Post continues to be a strong player in the Irish postal market and continues to provide quality services to customers and sustainable employment for staff. The recovery strategy approved by the board of An Post sets out the basis on which the company, in partnership with the trade unions, can move forward. While my Department is more than willing to assist in any way possible to facilitate an agreement, the responsibility for agreeing and implementing the plan rests primarily with the board, the management and unions in An Post.
