Oireachtas Joint and Select Committees

Wednesday, 12 March 2014

Joint Oireachtas Committee on Transport and Communications

Sustainability of Post Office Network: An Post

11:30 am

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael) | Oireachtas source

I welcome Mr. John Daly and Mr. Liam Sheehan to the committee. This is an important engagement following the debate last week. They will have heard there is genuine concern among stakeholders in regard to the future of the post office network. I am not one for scaremongering but I believe we must listen when alarm bells are ringing. The online environment alone represents a challenge. I could have sent 100 e-mails while the witnesses were speaking; I could have paid bills; I could have consulted with my bank accounts, all online and in real time. As previous speakers have said, there is nothing one can do about that. There are also services such as electronic financial transactions, online shopping and online bill paying, much of which was traditionally done through the post office. This poses a huge challenge for An Post.

What are we to do about it and what does the future hold? In this regard I wish to put a direct question to the management in An Post, which has huge trust and respect throughout the country. That is not something we can take for granted. As modern challenges present themselves, does An Post carry out risk management strategies on the various sectors that are now challenging its business? If so, surely these would identify where the challenges are coming from and where new opportunities might arise.

Mr. Daly spelled out where An Post gained business traction, for example, with vouchers. In the presentation, he mentioned new savings products, money transmission, banking, vouchers and other products offered by An Post, but there should be an alignment of strategy between An Post and its stakeholders. When I say stakeholders, the post office network is an important stakeholder. They are on the front line and hear and see the challenges, and I presume they are feeding back to An Post, as their business partner. I wonder what level of engagement An Post has with those to manage the risk that is presenting itself.

Government is also an important stakeholder. I note Mr. Daly welcomes the announcement by the Minister last week that there will be a review and the Government would like the post office network to be the front office of government. There are such opportunities, whether in motor tax, HSE payments, identification and other financial transfers, that could be explored further and realistically by An Post. That is an area in which Mr. Daly would need to get more involved.

I am concerned about the PostPoint initiatives as well. I understand why An Post wants to compete with competitors and why it needs to get out there, but there is a real risk of displacement or undermining existing networks. Tesco is not in every community but, let us be honest about it, members of every community shop in Tesco. I would like to see a more real engagement with An Post's existing network to see how it can enhance or empower those to do more before it goes down the route of centralising. If they are made fully aware of that service and it is made available to them, An Post might find that consumers will vote with their feet and go where the service is traditionally. Certainly, that would be the hope of us all. If the network is to remain sustainable, as I stated in the Dáil, the citizens and the communities need to be proactive as well and need to realise that when they do not put business through their post office or their network, if it cannot sustain itself, it is at risk of closing.

I have a criticism here because of my experience of the communication or consultation with communities when a post office is at risk. I had a direct experience in mid-County Waterford, the constituency I represent, when Kill Post Office closed and the initial engagements between An Post and the communities was poor as regards consultation and information. I respect the commercial or security sensitivities there might be in some cases, but when a post office serving a mid-county geographical area with a 10 km radius is closing, there is a need for real engagement so that residents will understand exactly what is going on. I attended public meetings there. Further to the closure, the community made realistic proposals to An Post to try to keep the post office open. Despite a former postmistress being willing to take it over and the community having identified business opportunities and received petitions that residents would commit to supporting the post office, unfortunately, it all fell on deaf ears. It was as if the decision was made and that was the end of the business. Even if that is the end of the business and the decision is made, An Post should learn from such experiences and engage in a more open and transparent way with communities rather than after the event, which is what I experienced and certainly did not like.

Finally, what realistic proposals has An Post made to Government to compete for and attract new business in areas such as motor tax and HSE payments? Mr. Daly briefly mentioned Irish Water as well. He might outline, as far as he can, what real engagement he is making with Departments to pitch for that type of business.

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