Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

I agree with a great deal of what Deputy Wallace said. In my recent reply to a similar question from him, I set out that it is my clear objective that An Post remain a strong and viable State company, providing high-quality services on a nationwide basis through a network of economically viable post offices, and this remains my position. I know this objective is shared on all sides of the House. However, I stress that the company must be, as the Deputy said, in a sustainable and viable financial position to ensure this.

I remind the Deputy that An Post is a commercial state company with its own board and management and their strategy and decision-making must be formulated in this context. Furthermore, operational matters are the responsibility of the board and management and I have no statutory function in this area.

The Government is a strong supporter of the network through the range of services it provides, which include social welfare payments, State savings and Passport Express. An Post has also been successful in leveraging its retail footprint to provide other services such as banking and insurance, which support continued easy access to those services for local communities. I know the Deputy will join with me in congratulating An Post on winning an arrangement with the Revenue Commissioners to collect the property tax. That will help the revenue position of An Post and it is the kind of new service it can provide better than anybody else, with a network of 1,138 offices throughout the country.

I fully understated the Deputy's concern about the viability of rural post offices and the importance of the post office to local communities. It should be noted that An Post is currently facing many challenges not just financially but from the development of communications technologies. Any decisions it may take must be considered in the context of maintaining a sustainable post office network. As shareholder, however, I have a strong concern in terms of the ongoing commercial position of the company and I regularly liaise with it in this regard.

I firmly believe An Post has many strengths. It is a trusted brand, has the largest retail presence in the country and is closely integrated with local communities. I have impressed on the company the need to further exploit its unique position in this regard and have been supportive of its attempts to diversify its income streams and to win a wider range of commercial contracts offering higher margins. I welcome the progress An Post has made towards diversification, including the announcement that following the decision of AIB to close a number of branches, an extended range of AIB services is available through post offices in the locality of the closures. This is beneficial not only to An Post as a commercial body but also to the local communities.

My Department and I will maintain ongoing contact with the board and management of the company to work with them on our shared objectives in light of the challenging environment they face.

See this speech in context