Dáil Éireann díospóireacht -
Tuesday, 2 Jul 1996

Vol. 467 No. 7

Written Answers. - An Post Development.

Rory O'Hanlon

Ceist:

25 Dr. O'Hanlon asked the Minister for Transport, Energy and Communications his policy for the development of An Post in view of increased competition from electronic mail; and if he will make a statement on the matter. [13902/96]

Rory O'Hanlon

Ceist:

423 Dr. O'Hanlon asked the Minister for Transport, Energy and Communications if ministerial approval is necessary for new developments in the operation in An Post; and if he will make a statement on the matter. [13901/96]

Minister for Transport, Energy and Communications (Mr. Lowry)

I propose to take Questions Nos. 25 and 423 together.

The development of An Post is a matter for the board and management of the company in the first instance and the company is entitled to conduct any new business which comes under the scope of the Postal and Telecommunications Services Act, 1983 and its Memorandum and Articles of Association. Since its establishment in 1984 the company has shown a capacity and willingness to expand into new areas of activity appropriate to its core business.

However, proposals which involve investing in other undertakings or the setting up new subsidiaries are subject to the approval of the Minister for Transport, Energy and Communications with the consent of the Minister for Finance in accordance with the provisions of section 16 (2) (f) of the Postal and Telecommunications Services Act, 1983.

An Post is keenly aware of both the threats and the opportunities that arise from the increased use of electronic communications. The board of the company, as far back as 1990, recognised that changing technology and markets posed a challenge to the maintenance of the traditional mail business. This analysis gave rise to the creation of a subsidiary company, PostGEM, founded specifically to respond to the changing market conditions through the development and marketing of electronic products.

After Telecom Éireann, PostGEM is today the operator of Ireland's largest managed communications network, providing not just E-mail but electronic data interchange (EDI), hybrid messaging and internet services. It aims to build on its success so far and to provide services that both complement and supplement the traditional business of An Post.

My policy in relation to An Post, as with other State companies, is to have them provide good quality cost-effective services in the interest of their customers and on a profitable basis.