Michael Kitt (Galway East, Fianna Fail) | Oireachtas source

I thank the Ceann Comhairle for selecting this issue for discussion and the Minister, Deputy Alex White, for coming to the House to deal with it. I recently tabled a parliamentary question to the Minister in relation to the business plan for An Post. In his reply, the Minister said that it was Government policy that An Post remain a strong and viable company in a position to provide a high quality postal service and maintain a nationwide customer focused network of post offices. The reply goes on to state that the board of An Post is required to approve a rolling five-year business and financial plan each year in accordance with the code of practice for the governance of State bodies. I am a little disappointed that the current five-year plan which will soon expire has resulted in the downgrading of many post offices and the closure of others.

The reply goes on to state that the company has begun work on its plan for 2015 to 2019 and that the Department will be engaging with the company over the coming weeks as the plan is being finalised. I would like the Minister to say that, in the context of finalisation of that plan, every effort will be made to support post offices. In recent weeks, I learned that Cappataggle post office, County Galway, will be closing on 31 December this year. The reply continues that a whole of government review of the scope for providing additional public services through local post offices is currently under way under the auspices of the Cabinet committee on social policy and that An Post is aware that this review is ongoing and engagement with the company is being undertaken when and as appropriate.

I was disappointed to read in yesterday's Irish Independentabout proposed wage cuts for postmasters. The relevant article, under the headline, "Postmasters being forced to take pay cut of up to €30,000", refers to wage cuts of between €4,000 and €30,000, depending on the level of social welfare business generated by each post office. This is something about which I have not heard heretofore. I have never heard of a postmaster being paid on the basis of the amount of business generated. This news has stunned postmasters, many of whom have expressed fears for the future of their businesses. Administration of social welfare payments is a crucial form of income for postmasters and an important service for post offices. The Minister will be aware that earlier this year a Grant Thornton report, commissioned on behalf of the Irish Postmasters' Union, warned that the loss the social welfare contract by An Post would result in the closure of more than 500 post offices. It is a fresh blow to the future of the network if, as announced, these cuts are to be imposed. This will put huge pressure on businesses already facing enormous challenges in terms of remaining open and will also result in smaller post offices losing out on several thousand euros per year.

We recently learned of the closure of Cratloe post office, County Clare, in addition to the closure of Cappataggle post office, which will impact hugely on people living in rural areas. I know the Minister has already met with the Irish Postmasters' Union. I hope that he will agree to meet An Post and that he can provide me with more information on the business plan for the next five years. It is hoped this plan will propose new business for post offices such that we are not always hearing about the closure of post offices.

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