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

Like everyone else, An Post has not escaped the challenging economic environment since the economic collapse in 2008. The diminishing mail volume, which is due to technological advances, is even more challenging. These hugely influential factors are appreciated at every level of the postal network. They are ignored by nobody other than the authors of this motion. The economic collapse and the onset of the digital economy must be factored into any serious assessment of the future of the post office network. Some Deputies might wonder where the headlines about post office closures have come from. Some callers to my office are certainly querying this. The answer is that a consultancy report has calculated that the loss of the social welfare contract, which is worth approximately €50 million to An Post, would lead to the closure of 557 post offices in a worst case scenario. The point is that An Post did not lose the social welfare contract. In fact, it won the contract in a tender process as recently as last year. The Irish Postmasters Union is prudently asking what might happen in the future.

The motion gives all sides of the House a useful opportunity to have a full and frank debate on the future sustainability of the post office network. While the motion that has been proposed leans towards a more pessimistic view of future changes, I believe there is every reason to be more optimistic about the opportunities that lie ahead for the post office network in the digital age. It is clear from the overall results of An Post that the retail network business has grown over the past five years as the mail business has been contracting sharply. Some people might say this is due to unique factors such as social protection payments and demands for NTMA products. I disagree because I believe the post office over-the-counter business now offers services that are very different from those it offered in the past. Foreign exchange, passport, bank agency and tax payment services are provided in a competitive environment to customers who can choose to do business in other ways. That so many Irish people use these services bears testament to the quality of front-line staff and the ability of management teams who are working to support those staff.

For the reasons I have mentioned, I cannot accept the motion that has been proposed. I acknowledge some of the important issues and challenges raised in it. The post office network is a unique social, cultural and financial institution that makes a vital contribution to the economy. The post office is the provider of choice to a vast number of people who regard it as dependable, trustworthy and friendly. The professionalism of the postmasters, the unions, the board and the management of An Post has served the network well over the years. I do not see why this should not continue to be the case in the years ahead. An Post is a trusted brand. It is seen as a local reliable service in urban and rural areas. An Post has the largest retail presence in the country, with more than 1,100 outlets reaching almost 1.7 million customers. Its accessibility to almost everyone in the country is one of its main strengths. Like all other companies, An Post has faced up to a challenging economic climate in recent years. It has had to tackle diminishing mail volumes and seek alternative avenues of income. An Post's core mail business has suffered a major fall in recent times. This has had a serious impact on the company's revenue flow. In response, the company is proactively seeking to keep costs down and diversify its business.

As Minister for Communications, Energy and Natural Resources, I am keen to see the development of a digital economy and to progress further the digital agenda. Electronic substitution affects every aspect of our lives. Undoubtedly, it is having an impact on the traditional over-the-counter services offered by the post office network. The increased use of newer technologies, which is a simple fact of life, should be viewed as an opportunity to be grasped rather than a problem to be eradicated. An Post has undertaken a programme of capital investment, particularly in computerising and automating the post office network, introducing new products and making greater market investment. As a result, post offices are well placed to provide electronic and more traditional financial services. While the move towards further electronic transactions is inevitable, many people are not comfortable dealing with machines and prefer face-to-face services, as Deputies Joan Collins and Maureen O'Sullivan have said. An Post is in a unique position to offer electronic services to such customers without losing the personal engagement the customer requires. An Post faces the same challenges as all commercial organisations that are developing new strategies to adapt to the greater role of e-commerce in the economy. In the face of such challenges, An Post has made great efforts to expand its business. I have supported its attempts to diversify income streams and win a wider range of commercial contracts that offer higher profit margins. I believe the postmasters and An Post can go further to develop new business. The potential exists to roll out a standard bank account, for example. Perhaps the post offices might come together with the Irish League of Credit Unions to offer a solution in this area.

The Irish Postmasters Union commissioned Grant Thornton to review the range of contract services offered across the post office network. The two reports that were published on foot of this review - one in 2012 and the latest one this month - outline options for new commercial business arrangements. Last year, the Joint Committee on Transport and Communications published a report highlighting a range of opportunities that could be pursued and acknowledging the high regard in which the network is held and the confidence that people have in the post office. The fact that 64% of the post office network is located in rural areas brings in another factor relating to rural sustainability and future development. A wide range of issues must be tackled to ensure the economic continuity of businesses and communities in rural areas. Operational matters and the development of commercial strategies with regard to the post office network are matters for An Post. Nevertheless, it is true that as a shareholder, I have a strong interest in and concern for the future sustainability of the company. This is backed up by the commitment in the programme for Government to ensure the sustainability of the post office network and the cross-party acknowledgement that the network is a vital national strategic asset.

For these reasons, I am pleased to announce that Government has agreed a whole-of-government consideration, encompassing central and local government and the wider public service, of the nature and extent of services that can be provided to the public using the post office network as a front office of government. This whole-of-government analysis will be undertaken in the first instance by the Cabinet committee on social policy with a view to a report to Government by that committee. I assure Deputy Healy Rae that his favourite Minister, the Minister for Social Protection, will be on that committee.

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