The Minister for Public Enterprise, Mary O'Rourke, has pointed to the state's bailing out of AIB and the Insurance Corporation of Ireland (ICI) in 1985, as a reason why the commercial banks should help out subsidising An Post's rural post office network.
In 1985 the Government agreed to take over ICI with its liabilities of £50-120m, following fears that AIB would face collapse if it was forced to hold on to the company.
Earlier this month, a report by industrial relations consultant Philip Flynn suggested An Post would need a subsidy of £83.2m to keep its entire post office network going.
The Minister's comments came after launching a new plan which, in conjunction with the commercial banks, will allow people to carry out a wider range of bill payments in their local post office.
John Collins, chief executive of retail business at the Bank of Ireland, welcomed the co-operation but said he could not comment on the Minister's subsidy suggestion because the bank had received no formal approach about it.
However he agreed that putting shareholders money into propping up a state body was not something Bank of Ireland would relish.
Responding to these concerns, the Minister said she was not surprised to hear the banks were not happy with her suggestion. She said she planned to meet representatives of the banks in the next two or three weeks to discuss the matter.
