Oireachtas Joint and Select Committees

Wednesday, 9 June 2021

Joint Oireachtas Committee on Transport, Tourism and Sport

The Viability of and Opportunities for the Post Office Network: An Post

Photo of Micheál CarrigyMicheál Carrigy (Fine Gael) | Oireachtas source

Thank you, Chair, for the opportunity of taking part in the meeting today. I welcome Mr. McRedmond and Ms Byrne. I suppose I should point out at the beginning that I am a sub-postmaster and I am also a member of the Irish Postmasters Union, IPU.

I, too, go along with what colleagues have said. I recognise the work that was done throughout the network via mail, counters and clerks, all through the pandemic. The service was kept going. Every office was kept open. In my local area, even on a Saturday, I saw post people using their private cars to bring shopping to elderly people who lived alone. Compliments went above and beyond. I compliment both witnesses on the work done by the company.

The brand name of An Post is up there at the top with the work. The schemes that were brought in through the pandemic, be it the postcard scheme for people in nursing homes or the free posting of packets to people, were excellent initiatives. I want to put that on the record and compliment them both.

I will not ask too many questions. I do not think I should. I have just a few comments.

Deputy Cathal Crowe mentioned something earlier on and I just want to go back to the negotiations in 2018 with regard to the transformation payment. I was one of those postmasters who was at those public meetings. Everything was put on the table to us to make a decision in a democratic fashion and that is what everyone did. The vast majority voted. I think over 80% were in favour. I would like to clarify that issue. I thought it was implied that we were not being given information at the time with regard to that decision. That is not correct; from my point of view as one of those postmasters, I want to put that on record. I have every confidence in the IPU to represent me and to work on our behalf with An Post.

I welcome the fact that a pandemic payment scheme is being put in place. Personally, I would like to see it for longer than 18 months but I can understand why it is there. The Grant Thornton report is with New Economy and Recovery Authority, NewERA. We need to be looking at a retained earnings model to support the network for a longer period of possibly three to five years. Mr. McRedmond mentioned earlier that this is about 931 communities as well as the jobs that are affected throughout that area. It is about communities and the knock-on effect of those offices in those communities with footfall, etc., and the ancillary business that it drives in all of those communities. There was a figure in the Grant Thornton report with regard to the social value of the network to the Irish economy and the average figure was €550 million.

That is what the network gives to the Irish economy and that is why it must be supported. There is an ideal opportunity to do that now. We have a large number of banks closing and there will be many towns left without a main financial institution so it is important the network is supported to be able to provide that service. One only needs to go back to 2010 when we had Postbank which had around 200,000 customers and no debt. It was actually the only bank in the country which was not supported at that time. It had to close and repay moneys while the State supported all the other banking institutions. There is now an opportunity for the Government to support the An Post network to keep it surviving, to be honest. That also fits in with our whole initiative for town centres. If we are to get people to move back into towns to live, we must have services available to people in those towns.

I welcome the interdepartmental group and I am aware it is due to report in early July. I am hoping it will look at areas such as motor tax and requiring all local authorities to allow council rent to be paid in post offices. At the minute, not all do and that is an issue.

Driving licences were mentioned by Ms Byrne. When that contract went out a number of years ago it was framed in such a way that we could not properly tender for it. That is a point that must be made. Sixty new offices for driving licence applications were set up around the country, some of them upstairs in shopping centres, etc., and all the while we had a network with the capability to deliver the service. We were not given the opportunity to do so, however. When that contract comes up again we should be given the opportunity to tender for it on a fair playing field.

I agree also with the comments made about the PUP. In the short term, when switching back to jobseeker's allowance, it should be put through the post offices.

The age profile of postmasters was mentioned. I am probably one of the younger ones. Has further consideration been given to offering another retirement package at some stage in the near future?

As I said, there are huge opportunities for the company. An Post has a very strong brand name. The Money Mate account offers an opportunity to get kids to turn the Cyril the Squirrel stamps, which are very popular with schools, into bank accounts. An Post could then build a suite of financial products that would keep those customers throughout their lives.

Once again I compliment the company on the work done over the past 15 months. As I said, we have a very strong brand name. I saw a report recently which was done last year, I think by Red C. It showed almost 90% support for financial supports or services being put through the An Post Network.

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