Oireachtas Joint and Select Committees

Tuesday, 4 September 2018

Joint Oireachtas Committee on Communications, Climate Action and Environment

Impact of Retirement Packages for Postmasters: Discussion

2:00 pm

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail) | Oireachtas source

I welcome both presentations. I thank Mr. McRedmond, who set out what this is about, namely, restructuring An Post. It is a commercial, semi-State company and that is its mandate. Mr. McRedmond has to look at viability in terms of profit and loss. He has a responsibility to the shareholders and the board of directors to exercise his fiduciary duty, and he has done that.

The Minister's responsibility is different and the third or fourth paragraph of his opening statement tells its own tale. He said that when he came to office "the future for An Post and the post office network was uncertain and extremely bleak" and that "The potential for a complete shutdown of postal services with the loss of thousands of jobs was undeniable. Immediate action was needed." The reality is that the Minister was spooked by An Post and the officials in his Department. It is one of the oldest tricks in the book: paint the worst possible picture, spook the Minister and frighten him into believing the world is about to fall in. If the Minister falls for it, the officials have a result. They have done that. The Minister clearly did not challenge them or look at alternatives. He went into crisis mode. This was his big moment - he was going to save the post offices. He lost sight of the communities - the small communities that he and I represent. I will not go through all 159 of the post offices but will use my own county as an example. Post offices will close in Lissycasey, Cree, Cooraclare, Doonbeg, Fanore and Kilfenora. They are all viable villages with post offices that do not fit Mr. McRedmond's model for viability.

If we were to introduce a PSO levy, do we give the same amount to the post office that has taken the package where there are 12 transactions a week and should it be considered the same as the post office that has 700 transactions a week? The Minister has a responsibility to develop a model of postal services in those villages that meet the needs of that community. Somebody has to pay. Mr. McRedmond says it will not be An Post; it does not fit his model. I suggest to the Minister that the PSO model with subvention from the State is a way to do it. The PBFI earlier identified other methods for doing it and maybe that can happen over time.

The Minister knows this will have a devastating impact on the lives of elderly and vulnerable people in the 159 villages identified. While Mr. McRedmond might talk about the distance people have to go to tax their cars, 12 km or 14 km for somebody who is elderly or vulnerable and does not have access to a car and certainly does not have access to public transport is an intolerable burden. I challenge him on the transfer of the services. All the new services can be created and there can be sterling, the dollar, yen and bitcoin, if it is wanted, but they will not save the post offices in Lissycasey, Cree, Cooraclare, Doonbeg, Fanore, and Kilfenora. Retention of the basic service is needed in those post offices, which includes social welfare payments.

There is a postal agency service available in some areas where there used to be a post office contract and it makes social welfare payments. If the Minister had not got into panic mode when the sky was about to fall, he could have gone back to Mr. McRedmond and asked what would be the cost of retaining a basic service in these areas, be it in the 159 post offices to be closed, or more if they opted for it, including social welfare, under the post office agency model in a local shop or supermarket. In the areas I mention in Clare - and the same is true for places dotted all over the country - there are people clamouring to take the service. They are not looking for the same money. They do not want the same burden of investment in the way of concrete roofs and caves where they have to store vast sums. There is not much money required because the activity levels have reduced. I urge the Minister to go back and consider that model as a way of saving the service.

There is a slight variation between the notes we received in advance of the meeting and what the Minister said. He said that "some or all" of the business can transfer to another facility.

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