Cathal Crowe (Clare, Fianna Fail) | Oireachtas source

I thank the Minister of State and Ms O'Hora for being here this evening. I was down home in Clare last night and met a group of postmasters. It was the latest in a sequence of meetings I have had. There was the IPU and Mr. Tom O'Callaghan of the Independent Postmasters Group and I was just getting a gauge from the small and the large postmasters on what they are facing and the challenges, and trying to take the pulse of the whole thing.

Today is historic because this is Government committing funding it never has before to the network. It is important to acknowledge that. It is also important to say the genesis of the problems facing the network lies in the slow dismantling of that once-famous S52 contract. It was very much a fit-for-purpose contract. As the Minister of State said a moment ago, postmasters do not receive a salary. They are paid on a transactional basis. The old S52 contract ensured if you went in for a social welfare payment or whatever transaction, the larger post office received a little bit less in transaction payments. It was positive discrimination to put more money into the smaller rural post office. Cumulatively across the year, and across many years, that ensured the network as a whole remained viable. What was on offer a few years ago was a brand new contract. Some jumped at it. I think there are now 440 remaining on that old S52 contract. Some of them are struggling but they see a future. However, the 560 or so that moved onto the brand new contract are in trouble. Today's announcement is positive. It throws a lifeline but they will continue to be in trouble unless there is a whole suite of new transactions and services that breathes viability into those post offices and puts money in their pockets. From the outset, Mr. O'Callaghan, the IPU and all individual postmasters looked for money and for subvention but were very clear that alone would not be enough.

I have a number of questions. The first is the postmasters sought €12 million, so why €10 million and not €12 million. I want to qualify that as well because last week the IPU was upstairs here briefing Deputies and its representatives said for every €1 million less than the €12 million, 100 post offices were put at risk, so why €10 million and not €12 million? I would like an answer to that first.