Pat Rabbitte (Dublin South West, Labour)

The Government's core policy goal for the postal sector is to ensure Irish customers, whether business or residential, enjoy competitively priced, high-quality postal services. The Government is committed to a strong and viable An Post and supports its maintenance of the maximum number of economically viable post offices.

The Government also appreciates the importance of the rural post office infrastructure. The programme for Government recognises that the universal postal service is an essential public service, especially in the case of rural communities and those disadvantaged communities affected by the digital divide. The importance of the postal business and the post office network was recognised by Deputies during the comprehensive debate on the Postal Services Act last year.

Deputies are aware that the commercial operation of An Post's post office network is a matter for the board and management of the company and not one in which I have a direct statutory function. An Post's original mandate stems from the Postal and Telecommunications Services Act 1983 under which it was established. The company is required to provide counter services for its own and Government business and other uses which the company sees fit. This counter business has developed significantly over the years and now encompasses a range of financial and bill payment products which are offered alongside the more traditional features such as NTMA products, social welfare payments and stamp and television licence sales.

An Post is facing challenges in its postal and mail business from the revolution in communication technologies. An Post must build on its intrinsic advantages such as the scale of the post office network, brand name and strong connection between postmasters and their local community to re-invent itself as a dynamic and sustainable business in the technological age. I am confident the management and staff are capable of doing this.

An Post management has succeeded in growing business at post office counters generally. Most Deputies are familiar with some public concern at queues and delays in certain post offices. This is not the sign of a failing business. Equally, Deputies should be aware of the success of new services such as foreign exchange in certain outlets. The counter business is not immune from the threat presented by the development of electronic alternatives to traditional counter business. An Post management cannot wish this away, nor will I ask it to.

At the last An Post AGM, it was made clear to the board that new value-added services must be found to maximise the potential of the post office network. The recession and banking crisis have increased the amount of business being conducted through post offices. An Post must take advantage of this and has been encouraged to give further consideration to identify scope for post offices to generate additional business, particularly on the banking agency side.

As a result of large-scale investment in the computerisation of the network, the company has had success in securing business growth in its contractual arrangements with AIB, Western Union gift vouchers, Garda fines and BillPay. In addition, An Post wins a significant amount of business from Departments for postal services and financial services delivered through the post office network. Approximately 62% of post office network business comes from Government work. However, while the Government will continue to strongly support An Post, a reliance on Government contracts in the future is not a valid or robust strategy for An Post to take to address the challenges it faces.

The Department of Finance is looking at strategies for the further development of e-inclusion initiatives in the financial services area. An Post already has a strong track record in dealing with people who are financially excluded and An Post will have a central role in the development and implementation of initiatives along with the other stakeholders in the area. The Department is working to ensure the advantages offered by An Post are fully recognised in the design of products and services to address financial exclusion.

The importance of An Post to rural communities is well recognised and as a company it must seize all opportunities to remain relevant to its local customer base. I understand the concern of the Deputies about the financial viability of the post office counters service. I will continue to facilitate business expansion by the post office counter business because it is only this growth which can provide a sustainable basis for the survival of an expensive post office counter service in rural Ireland. I will pay particular attention in the months ahead, with my colleagues the Minister for Finance and the Minister for Social Protection, to the development of a universal basic bank account product which I want to be accessible in the post office network nationwide.

The Government recognises the strategic importance the postal sector plays and the central role An Post has played to date.

See this speech in context