Fergus O'Dowd (Louth, Fine Gael)

I thank the Deputies for their comments and assure them that the Government is committed to a strong and viable An Post and supports its maintenance of the maximum number of economically viable post offices. I take particular note of what the Deputies said regarding the length of time the post office has been open, the services it provided historically and currently in the community and the impact this is having on the people. I will bring their concerns directly to the attention of the Minister, Deputy Rabbitte.

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 Communications Regulation (Postal Services) Bill last year. Deputies will be aware, however, 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 the Minister for Communications, Energy and Natural Resources has a direct statutory function.

An Post advises that on the resignation of a postmaster, a post office is reviewed in terms of business volumes and the geographical proximity of neighbouring offices. On that basis, An Post takes a view on whether or not the post office should be advertised. It is understood from An Post that the closure scheduled for the post office at Knockmore, County Mayo with effect from the 1 May arises due to the retirement of the postmaster there. Customers will be transferred to offices in Foxford, approximately four miles away, and either of An Post's two offices at Bury Street and Ardnaree in Ballina, which is approximately six miles away. Department of Social Protection customers will be catered for at Foxford initially but will be assisted in moving to any other post office of their choice. An Post advises there will be no change to mail services locally.

I fully understand the concerns of Deputies about post office closures or any changes to services offered in their constituencies, and concerns about the financial viability of the post office counters service in general. The importance of An Post to rural communities is well recognised and as a company it must seize all opportunities to innovate and remain relevant to its local customer base. An Post management has succeeded in growing business at post office counters generally but the counter business is not immune from the threat presented by the development of electronic alternatives to traditional counters services.

It is clear that An Post is facing challenges in both its postal and mail business. It must build on its intrinsic advantages such as the scale of the network, brand name and strong connection between postmasters and their local community to re-invent itself as a dynamic and sustainable business. I understand that the Minister, Deputy Rabbitte, is confident that the management and staff are capable of doing that.

The Minister will continue, where possible, to facilitate business expansion by the post office counter business because it is only that growth that can provide a sustainable basis for its survival. In this regard, the Minister will pay particular attention in the months ahead, with our colleagues, the Ministers for Finance and Social Protection, to the development of a universal basic bank account product which could be accessible in the post office network nationwide.

The Government recognises the strategic importance of the postal sector and the central role that An Post plays. Reflecting that role, it has been long-standing policy that An Post remains a strong and viable company in a position to compete in a liberalised market and continue to provide a wide range of services to both urban and rural communities.

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