The universal service obligation which, includes nation-wide delivery requirements, is enshrined in EU and Irish law and therefore, it is a statutory requirement for An Post, as the designated universal service provider. Furthermore, the European Communities (Postal Services) Regulations 2002 sets out the area of the postal market solely reserved for An Post to allow the company fulfil universal service obligations.
In addition, the Government provided €12.7 million in funding in 2003 to support the post office network, and the network also benefits from significant contracts with the Department of Social and Family Affairs for social welfare payments, and the National Treasury Management Agency for Government savings products.
It is not envisaged at this stage, that public funding will be provided to An Post to meet its universal service obligations. In other countries, postal services not only provide such universal services but also are commercially successful and not dependent on any form of State support.