John O'Mahony (Mayo, Fine Gael) | Oireachtas source

I thank the Minister for sharing his time with me on this important debate on the sustainability of the post office network. I welcome the fact that this report is being debated here today. As a member of the working group of the committee that helped to draw it up, I am very aware, having listened to all the presentations, of the huge challenges there are and the changing patterns of the lifestyles of our communities as they are being lived in the 21st century. However, as well as the challenges there are opportunities and while change is taking place, and there will be more to come, all the stakeholders, including the Government, An Post, the postmasters' union and, above all, our communities and the people the post offices serve must realise that in terms of An Post and the post offices, we have a very strong and trusted brand.

This network has delivered a vital range of services to the most isolated rural villages as well as to the biggest towns and cities in the country. It is important also that this debate is taking place at this time when all the major banks have announced the closing of branches throughout the country. Allied Irish Bank did it last year and Ulster Bank announced it would be closing up to 40 branches a few weeks ago. In many respects, the local post office is the one part of our financial network system around the country that is trusted and that provides the services that are so vital to our communities.

The post offices of this country continue to provide a personalised service which is still required and appreciated by the vast majority of our citizens. The post office is and always has been about much more than the services it provides. Changes in technology by the use of electronic substitutions or e-mail and so on has meant a decline in mail services and, as a result, the other sources of income to our post offices are even more important. Two of the main sources are the Government contracts and financial services such as the NTMA contracts. In this regard, I very much welcome the recent announcement by the Minister for Social Protection that An Post was the preferred bidder for the delivery of the over-the-counter cash services in 2012. Some 43.7 million payments were made through the postal network of 1,152 post offices. However, along with this announcement came a sting in the tail with the aim to reduce the cash payments to 3% by the end of 2014. We should think carefully before this is processed. It should not be done at the expense of thousands of jobs in our post offices throughout the country. Post office income is based on each transaction that is processed on behalf of the client and if that money is paid electronically, that income will be drastically reduced. I note that for example in Ballymun post office, which is not in my constitutency and therefore I have no brief to speak on its behalf, this would mean the reduction of 70% of the income of that post office.

It should also be noted that 13% of people do not have bank accounts and that they will have to pay to withdraw money from those bank accounts if it is paid electronically. Throughout the villages and towns of this country, whether it be a Friday or other days social welfare benefits are paid, the footfall for many of the local businesses and shops comes as a result of that money being passed out on those days.

Time prevents me from going into further details and recommendations of this report but I want to briefly refer to two other matters. The range of services and Government services can be delivered efficiently to the people at local level. I am referring to motor tax renewals, property tax payments and water charge payments - we might wish some of them were not in place but they are in place - and people who pay them need to have an easy, convenient and accessible way to do that.

Some of the biggest controversies in recent years, in some of which I was involved, have surrounded the closing down of post offices. There needs to be a look at how that is done. Communities have to play a part as well. There should be an early warning system where communities would be given the opportunity to demonstrate that they want to hold onto their local office. If they are not given that chance, there will be a feeling of bitterness in the community.

In other words, if income is declining in the local post office, the community in question should be given a chance to use it or lose it.

See this speech in context