DX Ireland, which provides business-to-business postal delivery services, is targeting the public service with a new product.

Gov DX will allow Government departments and State agencies to send post to each other without having to use An Post.

DX said its product would offer "a dependable early morning, next-day delivery service" which would be 30 per cent cheaper than An Post. DX says new postal solutions such as this will be required as Government departments are decentralised.

Kevin Galligan, managing director of DX Ireland, said: "DX Ireland offers a simple, cost-efficient and reliable nationwide service. Customers do not have to sort, weigh or frank their mail - DX Ireland does all that for them."

DX said the new service would result in a major expansion of its public sector activities and James Hancock, who has become business development manager, will be responsible for public sector clients.

DX says it already has a significant number of public sector clients, including the Companies Registration Office, the Department of Justice, the Department of Transport, the Department Arts, Sports and Tourism, Dublin City Council, the Morris Tribunal, the Office of the Attorney General and the Office of the Director of Public Prosecutions.

DX is already a major player in business-to-business postal deliveries, which it calls its document exchange service. Currently it delivers more than 10 million items annually on behalf of 4,000 customers.

DX Ireland is part of DX Services plc, which is listed on the London Stock Exchange.