Several Fine Gael TDs called on the Government last night to block the closure of rural post offices.
The party also moved a Private Member's motion seeking the computerisation, modernisation and upgrading of the entire network of post offices and sub-post offices to provide a reliable, efficient and cost-effective next-day delivery service throughout the State.
Party spokesman on communications Bernard Durkan said there would always have to be a place for the transaction of business at local level. "We need to recognise the appallingly low level of pay to a substantial number of postmasters who have effectively subsidised the service by providing premises and working for a rate below the minimum wage and, in some cases, below the poverty line."
Minister of State for Communications John Browne said the communications sector was changing rapidly. The global market for postal services was facing significant challenges, including an increasing amount of correspondence conducted by email, falling mail volumes and the threat to post office business from a move to the online pro-vision of services.
"There is, however, a number of opportunities for postal operators including An Post, particularly in the stimulation of parcel business caused by increased internet growth.
"However, the opportunities arise in an increasingly competitive environment and for this reason it is key that An Post continues with its current phase of restructuring in order to provide the range of products and ser-vices necessary to thrive in a competitive environment."
Mr Browne said the House would be aware of the financial difficulties which An Post faced in recent years, recording losses in excess of €70 million between 2001 and 2003.
"There is widespread agreement that change is required if the postal services of An Post are to adapt to the modern business environment and the likely increase in competition in order that it continues to offer a top class nationwide delivery service to the customer into the future."
He said Ireland had one of the highest number of post offices per head of population, with 4.2 outlets per 10,000 inhabitants compared to an EU average of 2.7.