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 Eamon RyanEamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

We need a new development model for rural Ireland and if we were imaginary and visionary, An Post could have a central role in such a model. I have three questions in three areas where we could look to expand the business and create that new development model.

First, Mr. McRedmond stated towards the end of his opening contribution that An Post was looking for additional government services to generate footfall. He cited driver licence applications as one example. Can he give other examples of government services? How long has An Post been looking for those? The Minister might want to contribute as well. What is the likelihood of such services coming online or of them becoming part of the new business model that An Post wants to develop? Will the Minister give as much detail as possible on those government services? I heard Mr. McRedmond state he has the harp over the door and wants all the harp services there. Specifically, I want to know what they are.

The 7 km range is still a hell of a distance, if one has got to walk or cycle. I welcome the six day postal-van service. Would Mr. McRedmond agree there is a possibility if An Post's parcel business is expanding, for the development of a business model where that van route is visible online and an application could be developed for those within the rural community so that it would not only be a postal parcel van but could also be a people van. With the new app-sharing and other devices, one would have a new public transport system that serves the rural community. Because one knows the route, one would know where the van is and when it is coming, and one could opt in to getting a lift from that van. It could well be a lift to the nearest post office which would also help bring business to it. Let us be radical and revolutionary in rethinking how An Post delivers its parcel services so that it is a public transport service as well. Would the Minister commit to that service?

I would very much welcome the potential expansion of An Post into lending but it does not have lending skills and expertise. Mr. McRedmond stated earlier that An Post has everything it needs to go into that business but I do not agree. An Post needs the likes of the Sparkasse banking model and it has to be community-based. We need another banking service, other than the pillar banks. Has the Minister supported the Minister for Rural and Community Development in Cabinet in seeking such a model? Both Mr. McRedmond and Deputy Naughten stated that they want An Post to go into small business lending. Where will An Post generate small business lending expertise if it does not bring in the likes of the Sparkasse model under which it could be developed? That model has worked for 200 years in Germany and it is a proven small business lending model. If An Post does not use that model, where will it get the small lending expertise? Members have stated here that we have to put in capital. I agree but we do not want to just flitter it away with on lending which is not based on smart business lending because rural Ireland needs such lending. The €20 billion on deposit should remain in rural Ireland which is what would happen under the Sparkasse model.

On those three examples of how we could provide a new rural business development, public transport and government services, I would be keen to know what specifically are An Post's intentions.

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