Oireachtas Joint and Select Committees

Wednesday, 26 February 2014

Joint Oireachtas Committee on Transport and Communications

Sustainability of Post Office Network: Irish Postmasters Union

10:05 am

Mr. Brian McGann:

I would like to respond to those points. Deputy Harrington refers to the Bantry letter, as it is called. I do not know that it is the only one in existence but I am getting calls from postmasters throughout the country who tell me they are losing customers because the customers have been pushed towards the banks. I am not in a position to say whether it is the only letter but there are other items of correspondence suggesting people should use the banks because the post office is a nuisance. From the reports we have received from around the country, there is no doubt that on the ground the Department is pushing people into banks. Regardless of the letters in existence, I refer the Deputy to the tender document the Department of Social Protection issued when it put the contract out to tender. A table shows the payments being driven by the Department from 51% to 3%. Effectively, this is driving the business out. It is not a matter of whether we get the odd letter from around the country. The Department's document sets out its timetable to try to drive the business out of the network.

If the business is driven out of the network, the post office network as it stands faces collapse.

This brings us back to a question I put to the committee earlier. The Government made a promise to maintain the network of post offices. How will it do that? I acknowledge that in recent years the number of closures has been less, but generally the pattern is cyclical. Let me assure members that if the Department of Social Protection continues on the road it has taken and if no Government plan is put in place, another 600 post offices will close by 2017.

Members have suggested that this contract gives the post office network breathing space. I am not sure how much breathing space it really gives us but in terms of moving to a cashless society, I think the voice that speaks loudest is the people. In the pub on a Saturday night one will not find too many people paying for a drink in anything other than cash. Talk about moving to a cashless society is easy but whether it happens is another matter. We believe An Post and the post office network should be in a position to offer a proper banking service to the people. In doing so, we believe that many of the problems associated with the security of moving cash could be mitigated. Under the current model the post office gives cash to its customers, so cash has to be transferred in the network to give it out. If there were a proper banking system in An Post with cash coming in and going out, one could mitigate many of the issues surrounding the movement of cash. The Irish Postmasters Union would certainly find that helpful.

It is great that a Cabinet sub-committee will examine this issue. I understand from the Minister that it is the Cabinet sub-committee on social policy. We certainly believe this is an issue that needs to be considered from the perspective of social policy. I would like to know when that committee published an action plan. I cannot recall a Cabinet committee on social policy or any other Cabinet committee publishing an action plan. We want an action plan.

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