Dáil debates

Thursday, 13 February 2014

Topical Issue Debate

Post Office Network

5:05 pm

Photo of Paul ConnaughtonPaul Connaughton (Galway East, Fine Gael)
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I thank the Ceann Comhairle for selecting this topic, which concerns Barnaderg post office in my constituency. Post offices are important, particularly in rural communities. Public houses are not as plentiful as they used to be and the ability to create jobs and build businesses in these areas is not what it was. In many cases, the post office is the only point of contact many people in these communities have during the week as they avail of its services. The postmaster in Barnaderg passed away after Christmas and An Post decided to review the post office. This raises a number of concerns, as there is a need for a post office in the area.

Last year, the Joint Committee on Transport and Communications produced a report on the post office network and the third recommendation states: "The committee recommends that An Post clarify and make public the criteria they used to establish the viability of a post office." That has not happened in this case. A number of weeks ago the community in Barnaderg was informed via a note on the post office window that it could be closed following a consultation period. The joint committee also recommended that: "In addition, An Post should introduce an amber light warning system, which gives communities advance warning that their post office may be vulnerable to closure. The aim of this is to allow communities to put in place a business plan which might avert this eventuality." However, the problem with that is if the community is not informed by the company about what it is looking for and what makes a successful post office and the products that should be offered, it is difficult for those involved. The community has had this post office for years but it now has to come up with a business plan within two weeks to establish the need for it.

I call on the Minister and An Post to implement the joint committee's recommendations for all post offices. In addition, I understand the consultation period for Barnaderg post office closes tomorrow. That is too soon. It is possible that the post office may be retained in some form but I am seeking the retention of full postal services, which the community has been used to for many years. A watering down of services will not be acceptable. An Post needs to take that into consideration before a decision is made. This is a viable post office. A member of the late postmaster's family is willing to take over immediately and there will be no break in service. I do not understand why An Post cannot give this person at least 12 months to provide the service. If the company could not find anyone to take on a viable business, that would be a different scenario. It is unacceptable that it should take such a heavy-handed approach in this case where a family member is prepared to maintain the business. The people of Barnaderg seek the retention of full post services and I would like the Minister of State to use his good offices to make sure that happens.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I thank the Deputy for raising this matter, which I am taking on behalf of the Minister for Communications, Energy and Natural Resources. I assure him that his comments will be brought to his attention directly. An Post is committed to a strong and viable post office network and supports the maintenance of the maximum number of economically viable post offices. The commercial operation of An Post's post office network is a matter for the board and management of the company and not one in which the Minister has a direct statutory function.

The postmaster in Barnaderg passed away in January and I offer my condolences to the family. An Post has given a temporary contract to the daughter of the deceased postmaster to maintain continuity of service to the community of Barnaderg while the future of the post office is assessed. In circumstances such as this, it is standard procedure for An Post to review the future need for a post office and to hold a public consultation. In accordance with its normal practice, a customer notice regarding the review was placed in the post office last month. This notice advised that An Post was considering the future service provision needs at Barnaderg, which could include closure of the office.

However, before taking a decision, interested parties who wished to do so were given three weeks to submit their views on the matter to the company no later than this Friday, 14 February. An Post has advised the Department that three weeks is the standard period for response to its consultation process and in its experience this duration has proved to be more than satisfactory. I also understand that An Post will meet a local community delegation tomorrow and this will form part of the consultation process. In coming to its decision, An Post will take account of network coverage needs; the level of business at the office; customer access to service elsewhere, for example, travel distances, etc; and capacity of neighbouring offices to handle business if the office closes.

Following consideration of all the views received as a result of the consultation process, An Post will then proceed to take a decision on the future of Barnaderg post office. I fully understand the concerns of the Deputy about its future and the importance of the post office to the local community. However, An Post is currently facing many challenges not just financially, but also from the development of communications technologies and the impact of e-substitution. Any decisions it may take must be considered in the context of maintaining a sustainable post office network.

As a shareholder, the Minister has strong concerns regarding the ongoing commercial position of the company. The reality is that the core mail business has suffered a major fall in recent years and this has impacted seriously on the company's revenue. An Post has many strengths and has the largest retail presence in the country. The Minister has impressed on the company the need to further exploit its unique position in this regard and he has been supportive of its attempts to diversify its income streams and to win a wider range of commercial contracts offering higher margins.

The Government recognises the strategic importance of the postal sector. It has been long-standing policy that An Post remains in a position to compete in a liberalised market and to continue providing wide-ranging services to both urban and rural communities.

Photo of Paul ConnaughtonPaul Connaughton (Galway East, Fine Gael)
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I thank the Minister of State for his reply. The consultation process with the community is under way but I am concerned that a short period was provided for the process in this case, given a temporary licence was granted for the post office a few weeks ago. This has not allowed for proper consultation to take place. Barnaderg is a diverse community and the people have to come up with a business plan. They do not have experience in this regard. The Minister of State outlined the criteria that need to be considered by An Post, including network coverage needs; the level of business at the office; customer access to service elsewhere, for example, travel distances, etc; and capacity of neighbouring offices to handle business if the office closes. These headings should have been relayed to the community from day one in order that people could prove the post office is viable.

While I acknowledge the banking sector is shrinking, in many rural areas, the banks are closing their branches in small rural towns.

Surely this is a situation on which An Post can capitalise. Instead of removing services from rural areas, it should provide even more services or restore those that were previously available.

In the instance to which I refer, there is a family member who is willing to take on the post office in Barnaderg as a going concern. The business has been viable during the entirety of its existence. There should be no need for consultation in respect of this matter. It is a different story in circumstances where, as previously stated, no one wants to take up a post office licence. That is simply not the case in this instance. All of the people in Barnaderg and Killererin to whom I have spoken want the post office to be retained and they want to ensure that the full range of services will continue to be offered there. I have no doubt that the local community will row in behind the post office more than ever before if it is retained. It is important that An Post takes this issue seriously and ensures that Barnaderg post office remains open.

On a general point, I am of the view that the consultation period should be longer and that more detailed information should be provided to local communities in respect of what they are expected to bring to the process in order that they might put forward the best case possible for the retention of their local post offices. Many things have already disappeared from rural areas. It will be very sad indeed if post offices start to disappear as well, particularly as they are essential to the integrity of all our communities. I want to ensure that post offices which are viable will be retained.

5:15 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I assure the Deputy that I will bring his comments to the attention of the Minister and the Department. I fully appreciate his concerns with regard to the people who live in the Barnaderg area of his constituency and the threat to their local post office.

The Dáil adjourned at 5.20 p.m. until 2.30 p.m. on Tuesday, 18 February 2014.