Michael Moynihan (Cork North West, Fianna Fail)
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11. To ask the Minister for Communications, Energy and Natural Resources the discussions he has had with An Post regarding delivering its services to all communities; the type of business model that will be used; if he will provide a guarantee that no post offices will close in 2015; and if he will make a statement on the matter. [10510/15]

Michael Moynihan (Cork North West, Fianna Fail)
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I wish to ask about the discussions with An Post regarding the delivery of services to all rural communities and the type of business model to be used. Will the Minister of State provide a guarantee that no post office will be forced to close in 2015?

Joe McHugh (Donegal North East, Fine Gael)
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It is Government policy that An Post remain a strong and viable company that is in a position to provide high-quality postal services and maintain a nationwide network of customer-focused post offices in the community. The post office network faces significant challenges given the impact of the economic downturn over the last few years, changes in technology and customer retail preferences. However, it is also well positioned to become the front office provider of choice for government and financial services sector electronic transactions, as well as the more traditional over-the-counter transactions.

The Minister recently established the post office network business development group under the chairmanship of Mr. Bobby Kerr. The group's terms of reference are to examine the potential for existing and new Government and commercial business to be transacted through the post office network; to identify the new business opportunities for the post office network, taking account of international experience; to engage, as necessary, with the public sector, commercial bodies and other interested parties in pursuit of the above objectives; and to prepare an interim and final report for the Minister in accordance with an agreed timetable.

The group’s work will be of strategic importance to the future of the post office network. Its final report will be available during the course of this year. Operational matters, including the closing of post offices, are issues for the board and management of An Post.

Michael Moynihan (Cork North West, Fianna Fail)
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Is the new post office network business development group, launched by the Minister, Deputy White, last month and chaired by Mr. Bobby Kerr, the only initiative taken by the Government thus far in the context of the announcement prior to the local and European elections by the former Minister, Deputy Pat Rabbitte, of a whole-of-government approach to the development of An Post? Is this the only initiative being taken by this Government almost a year since the announcement of a whole-of-government approach in this regard?

Joe McHugh (Donegal North East, Fine Gael)
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I do not think it is the only initiative. While whether a post office remains open or closed is not a matter for the Government, the importance of retention of post offices has been a matter of huge concern for members of the Fine Gael and Labour Parties, particularly backbenchers. The strong conversation around the need for retention of post offices led to the establishment of the post office network business development group, which is expected to report soon on the issue of the sustainability of post offices. As part of this critical mix, there will need to be a sharp focus on banking.

Earlier this morning I spoke to the postmaster on Tory Island, Mr. Jimmy Rogers. People from Tory Island who wish to withdraw money from their post office accounts are required to travel to the mainland - some people on Tory Island believe it is the mainland, with which I agree - to withdraw money from their post office accounts via an AIB ATM. Post offices need to engage more in banking services. It is also important that there be a greater focus on the availability of government services through An Post, which is where the conservation is at. As I am a member of the post office network business development group, I do not propose to engage in predicting the likely outcome of its review. Discussion on the matter is ongoing.

Michael Moynihan (Cork North West, Fianna Fail)
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I take it that nothing, other than the launch of the group, has happened since last April, when the former Minister, Deputy Rabbitte, announced a whole-of-government approach in this area.

I have examined this issue in depth. In the many years I have been a Member of this House, and for many years prior to that, the closure of post offices and the detrimental effect of this on rural communities has been an issue of concern to Members on all sides of the House. We must be bold. We need to change the memorandum of understanding for An Post. As in the case of the ESB, which has a public service obligation to deliver electricity to every house and business in the country, An Post should be required by public service obligation to maintain the post office network as it currently stands. Enough is not being done by An Post in terms of business service provision. We need to encourage it to focus more on this area and we need also to focus our attention on the generation of business that will sustain our post offices. If we do not do this, we, or others, will be here in five or ten years' time discussing the same issue. It is time we faced down this issue. We must also change the memorandum of understanding of An Post, given the change in its constitution.

Michael Kitt (Galway East, Fianna Fail)
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We are out of time and must move on to the next question.

Joe McHugh (Donegal North East, Fine Gael)
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The statistics are indicative of what has happened in the three years between 2011 and 2014. During that time, 24 post offices closed. During the six-year period between 2004 and 2010, 345 post offices closed. On the basis that this has been the trend, the Government takes this matter very seriously. The Government has faced enormous pressure at parliamentary party meetings in relation to the need for retention of post offices. Post offices are a critical part of the community infrastructure. Friday is an important day for the elderly in rural and isolated communities. They do not all go to bingo on a Wednesday night, so visiting the local post office on a Friday is often the only point of contact for them. There is a massive social dividend here that needs to be protected.

I take on board the Deputy's constructive suggestion. I look forward to engaging further with him on the matter when it comes to the debate on the report of the post office network business development group, which, as I said, is being chaired by Mr. Bobby Kerr.