John Browne (Wexford, Fianna Fail)

As well as its nationwide reach, the strengths of the post office include a recognised and one of the most trusted brand names in the country, a high customer footfall and a strong relationship between postmasters and their customers. However, the network is facing a number of challenges which will intensify in coming years. First, the bulk of business undertaken by the network is high volume, low margin transactions such as welfare and utility bill payments which are susceptible to migration to other payment channels, especially electronic methods of payments. Second, the network is heavily dependent on two key contracts, namely, those with the Department of Social and Family Affairs and with the NTMA and the POSB in respect of Government savings. Third, the European Court of Justice is examining the contract of the Department of Social and Family Affairs with An Post. The Advocate General to the court recently issued her opinion that the contract that An Post holds with the Department should have been advertised. The court is expected to rule on the case shortly. Furthermore, in line with the Government decision to move to electronic payment methods, the Department has been examining a long-term strategy for the delivery of welfare payments. The model being considered is cashless and paperless involving EFT functionality for welfare clients.

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