Joan Collins (Dublin South Central, People Before Profit Alliance) | Oireachtas source

I am aware that there is much goodwill among postmasters in the context of recognising CWU members in their post offices.

The programme for Government contains a commitment to maintain the post office network as a result of the role it plays socially and economically. We want the Minister to indicate that this commitment will be adhered to. His announcement to the effect that no post offices will be closed is welcome. The post office network is, however, being undermined by means of particular actions, even, possibly, by those of the Government. The network is crucial in both rural and urban areas. I attended a residents association meeting on Friday night last and I was approached by a number of elderly women who had heard that up to 600 post offices could close as a result of a lack of financial transactions being conducted on their premises. The women to whom I refer do not receive their payments by means of electronic funds transfer. Another matter about which they are concerned - this was also highlighted by Deputy Healy - is that many banks are pulling out of villages and smaller communities. For example, only one bank branch remains open in Inchicore village following the recent closure of the Bank of Ireland branch there. Many of the elderly women I met cannot, therefore, access their funds via the banking system.

It must be recognised that 18% of Irish people do not have bank accounts. These tend to be individuals who are on low incomes or in receipt of social welfare payments. Some 23% - almost one quarter - of the population do not have Internet access. Again, those involved in this regard are low income earners, those in receipt social welfare payments and old age pensioners who rely on over-the-counter payments at their post offices. People also rely on the post office to pay their bills. The type of individuals to whom I refer may visit their local post office regularly to pay €10 off their gas, electricity, telephone or refuse collection bills. Post offices constitute an important social network which is - to our minds and those of the postmasters - being undermined by the Department of Social Protection's strategy to move to electronic payments. Despite winning the contract for this part of the Department's business, post offices are losing out because that business is being transferred to the banks by the Department on a daily basis. The Irish Postmasters' Union has evidence, both written and oral, which confirms this. For example, there is correspondence from the local officer in Bantry in which people are informed that before their claims can be decided, they must submit details of their bank accounts. People are not being given a choice and if this continues, post offices will no longer have the business relating to welfare payments and hundreds could be forced to close as a result. That is an important point. While the Minister is committed to not closing post offices, they could actually close by default as a result of actions on the part of some of his ministerial colleagues and their Departments.

Post offices are the bedrock on which the network was built. What happened in the UK in this regard has been made quite clear to the Government. The main lesson it can take from the experience in that jurisdiction is that it must act to bridge the potential €60 million a year deficit which could hit the network. If it does not do so, the network cannot survive. Grant Thornton reports that up to half of our post offices - up to 600 - will close if action is not taken. This potential closure of post offices would fly in the face of the commitment to which I referred earlier but also the Government's strategy of financial inclusion, which identifies the provision of a basic payment account, PBA, as a first step. Such an account would meet the needs of financially excluded people and its regular use would enable people to build up financial profiles for themselves. This, in turn, could assist poorer people in accessing mainstream credit rather than being obliged to approach moneylenders.

The motion calls for the establishment of an action plan - we want to hear from the Minister that such a plan will be forthcoming - and that a report on the progress made in respect of its implementation will be made within six months of the plan's publication. The longer the delay in respect of this matter, the greater will be the danger that post offices will be forced to close as opposed to being closed by the Government.

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