Oireachtas Joint and Select Committees

Wednesday, 1 May 2013

Joint Oireachtas Committee on Transport and Communications

An Post: Discussion Chairman Designate

10:00 am

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael) | Oireachtas source

I thank Mr. Mueller for his presentation. As he has successfully turned around the fortunes of Aer Lingus, I have no doubt that he will leave his mark on An Post. I would like to know, in line with what some of the other speakers said, what his philosophy for An Post is because he will face many challenges and opportunities. What is his philosophy for the post office network of 1,100 post offices? Will he lead the charge to make the network viable, particularly given what is happening in the overall context of banking services being reduced?

An Post is a very strong brand throughout Ireland, particularly in rural areas where banks are closing branches. Some bank branches remain open, but they only provide certain services a couple of days each week. What medicine will be applied to tackle the €40 million deficit? Will Mr. Mueller lead the charge to secure extra services for post offices to make them viable, or will he be ruthless and close down some of them? Closure seems to be the kernel of the approach adopted.

There has been talk about facing the challenge presented by a €17 million deficit. It is clearly pointed out in the report that the level of parcel post is increasing. As such, what approach will Mr. Mueller adopt? I note that the chief executive at An Post, Mr. Donal Connell, said last week, when figures were being given for the report, that meeting the universal service obligation had cost over €60 million last year. It is clear that that is unsustainable. I would like to hear Mr. Mueller's view on this.

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