Oireachtas Joint and Select Committees

Wednesday, 12 March 2014

Joint Oireachtas Committee on Transport and Communications

Sustainability of Post Office Network: An Post

11:10 am

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein) | Oireachtas source

I thank the delegates for their presentations. We are concerned about the sustainability of post offices, as is An Post. Will the delegates address the issue of the sustainability of An Post? There are 1,147 post offices in the network. I presume this figure incorporates very large facilities, as well as smaller and dedicated facilities and facilities that form part of a family store, that open one or two days a week. I would like to receive a breakdown of the number of 1,147 post offices. I wish to know whether all of them have an IT infrastructure that is capable of processing electronic transactions. Is there a standard template for the security measures needed in handling cash in all 1,147 post offices or does it vary, depending on the size or nature of the outlet?

An Post states it is discussing the question of extending services to customers. I am aware that it was in discussions with the Irish League of Credit Unions and other financial institutions. While I understand the need for sensitivity surrounding these discussions, I do not believe we have the luxury of time. With banks closing down, opportunities will arise and An Post should be ready to take up the slack. An undue delay will result in a missed opportunity.

We are not going to stop electronic funds transfer, so An Post will have to consider - and from what has been said here, it is considering - its business model. It is an opportunity for further work and exploration of the business model.

According to the Grant Thornton report the level of closures has reduced. Up to two years ago there were roughly 200 closures, but that number has fallen. Were the closures predominantly due to a lack of facilities or IT infrastructure? What was the main reason for the closure of 200 premises?

If I accept that neither the Government nor An Post wants to close post offices, given that the service is dependent on either footfall or the volume of electronic transactions, is there a list of endangered outlets in An Post? Is there an amber alert system that would remind An Post to talk to the people who work in the post offices - the postmasters - and the communities? If communities were aware of the potential risk to "their" post office - and that is the how people consider them - perhaps they could do more to safeguard their facility.

Either Mr. Sheehan or Mr. Daly said that newspaper headlines claiming the network was at risk were unhelpful. I accept that the Government and An Post have said they have no plan to close post offices, but today was the first time anybody explained the Tesco and PostPoint link-up. That fact has not been made clear to the public and to politicians. Perhaps something was sent to me but I did not notice it. We need to know what services will continue to be made available at post offices rather than through the PostPoint facility and at Tesco or other retail outlets, and we need to know what will be available through these facilities but not at post offices. I found the same confusion in the Minister's response to a question on post office closures last week. He said it was not the Government's wish to close post offices, but a little later he said An Post would be foolish to ignore the reality of high-footfall locations in major retail areas. I interpreted that to mean that the aim was to shut down the high street in every town and village, so it is not just post offices that should be concerned. The public and politicians need more information on the matter. Those are all of my questions for the moment.

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