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

It is Government policy that An Post should remain a strong and viable company, as the Deputy would wish, in a position to provide a high-quality nationwide postal service and to maintain a nationwide customer-focused network of post offices in the community. Operational matters and the role of developing commercial strategies for the post office network are, of course, a matter for the management and board of An Post and one in which I have no statutory function. As shareholder, however, I have a strong concern and hopefully some influence regarding the ongoing commercial position of the company and I regularly liaise with it in this regard. The post office network has many strengths and has the largest retail presence in the country. I have been supportive of its attempts to diversify its income streams and to win a wider range of commercial contracts offering higher margins.

I have welcomed the selection of An Post as the provider of over-the-counter cash services for social welfare customers. The social welfare contract is the largest contract held by the post office division of An Post. As Deputy Naughten noted, the Department of Social Protection intends to implement a strategy whereby the bulk of social welfare payments will be made electronically. I understand the post office network will pitch strongly for the social welfare e-payment business when it is put out to tender by the Department of Social Protection. Having invested in the computerisation of all post offices, the post office network is well positioned to become the front office provider of choice for Government and the financial services sector. Progress towards diversification within the financial services sector is already under way, with the enhanced arrangement with AIB and the agreement with Aviva for the transfer of its branch offices' personal insurance business to One Direct.

In the context of the public sector transformation agenda, I will continue to engage with my colleague the Minister for Public Expenditure and Reform on the consideration, as appropriate, of the post office network for transactional elements of the business of Departments and Government agencies, and I have stressed to my Government colleagues that the network is ideally configured for over-the-counter transactions. Any such developments would, of course, need to be subject to public procurement requirements as appropriate.

Overall, I envisage a strong future for the network through the use of its existing strengths to remain a significant player as a front office for Government services. In this regard, the post office network has secured over-the-counter local property tax payments. In addition, Garda fixed charges, television licences and passports can all be paid or purchased at the post office, as well as dog licences and toll fees. I also envisage a strong role for the post office network in the next phase of the standard bank account project, as the target segment for this project is already comfortable in using post offices for financial transactions.

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