asked the Minister for Communications if the proposed development by An Post of (a) banking and retail services, (b) a mail order service, and (c) an electronic mail service will benefit from a parent company guarantee in respect of borrowing; if so, his views on whether there is adequate protection for the taxpayer against loss, and adequate protection against unfair competition with private firms operating in the same fields; and if he will make a statement on the matter.
Written Answers. - An Post Services Extension.
87.
As the Deputy is aware, An Post was set up under the provisions of the Postal and Telecommunications Services Act, 1983, to provide a national postal service and other services. The Act requires the company to ensure that their revenues are not less than sufficient to meet all charges properly chargeable to revenue account taking one year with another, to generate a reasonable proportion of capital needs and to remunerate capital and repay borrowings.
An Post has been achieving improving financial results and last year the company made their first profit. It is my policy to encourage the company to develop proposals to achieve their objectives, to further improve their financial position, to keep abreast of changing market needs and to provide high quality services subject, of course, to compliance with the legislation governing the activities of the company. I am informed by the company that the question of the provision of a guarantee by itself or by any other body in respect of the proposals referred to by the Deputy has not arisen to date.
On the question of competition with private firms operating in the same fields as An Post, the company have not been receiving any preferential treatment in that regard and there are no proposals to alter that position.