PostNet plans to open 15 outlets in Dublin in the next two years. The company's first franchise branch was opened yesterday by the Minister for Public Enterprise, Ms O'Rourke, at Rathmines in Dublin.

Among other products, PostNet offers outbound postal services, discounted courier services to the small and medium-sized business sector and a mail box service.

The Minister welcomed the initiative, citing the EU proposals to further liberalise the letter post market from 2003.

Asked about the future of An Post, she said the State-owned company was unlikely to be privatised. Ms O'Rourke said she had sanctioned An Post to seek a strategic alliance partner and believed that the likely partners were the Royal Mail or the Dutch 26 firm, TPG.