Denis Naughten (Longford-Roscommon, Fine Gael)

Post offices are valued not only for the business they do but also for the wider social role they play. In rural areas and some deprived urban areas, post offices play a crucial role in sustaining local communities. In many areas, they help to keep open the only village shop or other retail outlet. They regularly provide support and advice for vulnerable people and can often act as a focal point for the whole community.

The Minister for Communications, Marine and Natural Resources must bear in mind the rapid speed at which rural post offices are closing. The local post office is the heart of many rural communities and there are serious concerns that the large number of closures will accelerate in 2007. County Roscommon has lost 20 post offices since 2000. Twelve have been downgraded to Post-point agencies with a limited service and eight have been closed completely. In County Leitrim, a further 20 have been affected in that 13 have been downgraded and seven have been closed completely. Such decisions have a direct negative impact on the communities served by the post offices. Not only are the communities losing existing postal services but, with the introduction of the full banking service by An Post next year, they will also be denied new and improved services in the future. The expansion of An Post into the banking sector will become important and many of the banks will pull out of the smaller towns. It is, therefore, very disappointing that nothing has been done in the past ten years to support the rural post office network.

The European Court of Justice recently notified the Minister for Social and Family Affairs that the €50 million social welfare contract, currently held by An Post, will be put to tender next year. It is anticipated that An Post could lose this contract because the Department seems intent on focusing on the electronic transfer system. As a result, it is likely that many more post offices around the country will close.

The network has become increasingly reliant on a few lines of business for the majority of its revenue. In order for the sub-post offices to remain viable, the number of services and volume of transactions must be increased dramatically. The use of information technology is fundamental to the maintenance of the post office network throughout the country. While it is stated Government policy to improve information technology and Internet access throughout the country, especially in rural communities, it has paid nothing but lip service to the concept. Many parts of the sub-post office network have not been upgraded with electronic services.

Responsibility for modernising the network clearly rests with An Post but the Government also has a role to play to ensure post offices have the resources to make the network operate efficiently. With immediate effect, the Government must ensure that every sub-post office throughout the country is computerised, thus dramatically expanding the number of services provided. This would allow non-automated sub-post offices to provide services such as Passport Express, issue prize bonds and offer banking services, which are unavailable at present.

Opportunities exist to diversify into new lines of business, including e-commerce and one-stop shops for Government information and carrying out transactions. Over recent years, the Department of Agriculture and Food has facilitated on-line access for farmers but, owing to the lack of broadband in rural areas due to the Government's incompetence, access to the service is limited severely. The Department, in conjunction with An Post, should devise a scheme to allow post office staff make electronic returns on behalf of farmers. Many more Government services could be developed if the political will existed, but it does not seem to be evident at present.

The social role of post offices is important in rural areas. In many rural areas, post offices have remained while other services have been withdrawn. New lines of business should replace most, if not all, of the lost revenues. I commend the motion to the House.

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