Alex White (Dublin South, Labour) | Oireachtas source

I thank the Deputy for raising this important issue.

I would like to reassure the Deputy that the Government is committed to a strong and viable An Post and supports the maintenance of the maximum number of economically viable post offices providing high quality services on a nationwide basis. As stated by Deputy Kitt, the board of An Post is required to approve rolling five-year business and financial plans each year in accordance with the code of practice for the governance of State bodies. I understand that the company has begun work on the plan for 2015 to 2019 and my Department will be engaging with the company over the coming weeks as this plan is being finalised.

In relation to the post office network and decisions relating to the opening and closing of post offices, this is an operational matter for the board and management of An Post and not one in which I have a statutory function. The future of the post office network, including post offices located in County Galway, will only be secured by it continuing to provide services that large numbers of people and business users need and are sustainable in the long term. The post office network needs to develop so that it can meet the challenges it is facing in urban and rural Ireland over the medium term. In urban Ireland, increased broadband penetration, reduced mail volumes and the availability of alternative payment services is reducing post office business.

In much of rural Ireland, commercial business is moving away from smaller towns towards larger urban centres. This is marginalising the rural economy, drawing employment away from the countryside and reducing the level of economic services, including banking and retail, available outside regional centres. It has been necessary to undertake a whole-of-Government review of the scope for providing additional public services through local post offices. This review has been under way for some time under the auspices of the Cabinet committee on social policy. An Post and the Irish Postmasters' Union are aware that this review is ongoing and are receptive to exploring avenues for securing new lines of business for the network. I have met An Post and the IPU in relation to these matters.

I understand the concern of the Deputy and other Deputies about the future of An Post and the post office network. An Post is currently facing many challenges not alone financially, but also from the development of Internet-based communications technologies. Any decisions it may take must be considered in the context of maintaining a sustainable post office network. As shareholder, I have a concern regarding the ongoing commercial position of the company and I regularly liaise with the company in this regard. I acknowledge the pivotal role that post offices play in local communities, urban and rural, in both financial and social terms.

There is a strong future for the company and the post office network by leveraging its existing strengths to remain a significant player in the provision of Government, financial and other services. Securing the future viability of the post office network in the longer term will entail the network continuing to modernise and diversify, as it is doing, to provide services that its customers require. It has been long-standing policy that An Post remains in a position to compete in a liberalised market and to continue to provide wide-ranging services to both urban and rural communities.

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