Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

111. To ask the Minister for Communications, Energy and Natural Resources the strategy his Department has to sustain the post office network here; if he has had discussions with the Department of Social Protection; and if he will make a statement on the matter. [19991/14]

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

What strategy does the Department of Communications, Energy and Natural Resources have to sustain the country's post office network? I know there is to be a whole-of-government report, but what negotiations and discussions has the Minister had with the Minister for Social Protection on the sustainability of post offices?

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

It is Government policy that An Post remains a strong and viable company in a position to provide a high quality, nationwide postal service and maintain a nationwide customer-focused network of post offices in the community. The professionalism of the postmasters and An Post has served the network well down through the years and I do not see any reason this should not continue to be the case in the years ahead.

I met with members of the Irish Postmasters Union on 24 March and we had a useful and wide-ranging discussion on their concerns about the future of the post office network.

I have written to my Government colleagues, including the Department of Social Protection, to encourage them to consider what assistance their Departments might be able to give for the stimulation of new business for the post office network.

I had committed to taking the issue of the provision of additional public sector business to the Cabinet committee on social policy. The committee had its initial consideration of the paper put to it at its meeting on 28 April and agreed to my proposal for a whole-of-government review of the scope for putting additional public services in the post offices. This will be undertaken over the coming months with the aim of a final report, based on the responses made by Departments, being made to the Cabinet committee in September.

I see a strong future for the network by using its existing strengths to remain a significant player in the provision of Government, financial and other services. Securing the future viability of the post office network in the longer term will entail the network continuing to modernise, as it is doing, to provide the services that its customers require. Any such developments would need to be subject to competition and public procurement requirements as appropriate.

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his reply. Is it not time that we looked at the fundamental governance of An Post and the memorandum establishing the company? The ESB has a public service obligation to maintain the electricity network to every community in the country. We talk about maintaining post offices and the fact that the post office network is vital to communities but apart from the network, post offices also have the public's trust. It is time that the memorandum of understanding establishing An Post was changed to state that it has to maintain post office networks the length and breadth of the country. As a commercial semi-State body, the emphasis of An Post would change dramatically if it was obliged by legislation or other statutory means to maintain the post office network. In that case, An Post would vigorously go after business to ensure that the network was maintained.

The other issue concerns State contracts including, most recently, the provision of driving licences.

It must be looked at to ensure that An Post can tender for such projects.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

The problem is that An Post's mandate is that of a commercial State company. It is not always possible to reconcile that with a mandate to shore up the post office network. The post office network is a combination of private enterprises which are subject to EU competition and procurement law. Deputy Moynihan is correct that there is a dilemma here. The dilemma is best highlighted in the context of the point he raises about the social welfare contract, which is worth approximately €58 million to the postal network. The dilemma is how to migrate the contract to electronic transfer of funds and protect the incomes of postmasters.

While I understand fully why postmasters would want to protect their incomes, I also appreciate why there is an imperative from the point of view of the Department of Social Protection to make savings in the delivery of its services wherever possible. For example, the average income from the social welfare contract for postmasters, who might well have other business, was €37,000 per annum at the height of the boom in 2004. Last year, the average was €68,000 per annum. That is because the social welfare contract provides for a fee per transaction coupled with the explosion in unemployment since the economic crash. Clearly, incomes significantly increased on foot of the fee per transaction arrangement.

I have made the points Deputy Moynihan makes to An Post's senior management, who have pointed out to me that they had to take €70 million out of payroll costs and €30 million out of non-payroll costs in the same period that the incomes of postmasters increased significantly for the reasons I have outlined. We must reconcile the dilemma between seeking to protect the incomes of postmasters and the need for the Department of Social Protection to efficiently and most effectively deliver its service to its clients.

Michael Moynihan (Cork North West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

As a society, we must make up our minds as to whether we want to maintain the post office network as it is. We have seen how communities that lose their post offices very quickly lose other services. An Post is a semi-State body to the same extent as the ESB, which is obliged to provide a service in every community. We must look at An Post. I have looked genuinely at this matter in a whole raft of ways. We can add services. Post offices have financial services, the social welfare contract and other things, which is all very well and good for those offices which are up and running. However, we must get down and deep into the smaller communities which are losing post offices, including Freemount and Rathcoole in the recent past. We must change the memorandum of understanding to provide that An Post has a legal obligation to ensure that the network is maintained and go after the business then.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

In fairness to An Post and postmasters, they have grown their businesses in recent years and continue to do so. If one looks at the withdrawal of banking services from many villages and towns, it appears that retail banking has gone out of fashion as far as the senior management and boards of banks are concerned. Post offices have stepped in. One of the things I have put to the Cabinet sub-committee is that the Irish Postmasters Union might productively explore an arrangement with the Irish League of Credit Unions to establish a basic or standard bank account.

I have had discussions with the Minister for Finance on this point and do not think we should exaggerate. The Government has no plans to close post offices. I have given the figures in the House before. Some 197 post offices were closed between 2006 and 2010. Since 2010, 17 have been closed. There is no intention on the part of the Government to wantonly close post offices, but there is a necessity for the House to have clarity on the role of An Post. I appreciate the immensely valuable role the post office network plays at village and community level, as the Deputy argues. The role of the postman or postwoman is far wider than just delivering the post. The mandate which has been given to An Post is that it is a commercial State company which brings with it certain realities at a time of e-substitution and when it has lost 30% of its core mail business in the past five years. These realities must be taken into account.