Alex White (Dublin South, Labour) | Oireachtas source

I welcome the opportunity to address the House on the day the initial report of the post office network business development group has been published for consultation. I established the group which is led by the entrepreneur Bobby Kerr in January to explore commercial and public service opportunities to secure the future of the post office network. It has found that a disproportionate amount of business is conducted in relatively few of the country's 1,140 post offices. Two thirds of all transactions are conducted in 300 post offices, while a further 48% of post offices account for just 12% of total business. In addition, the post office network is hugely reliant on two contracts, one with the Department of Social Protection and the other with the NTMA. Changing consumer preferences mean that many consumers do not go to the post office any more. The way in which people do business has changed markedly in recent years. This means that post offices must continue to diversify and modernise in order to provide the services that will attract customers. The business development group makes the point that post offices have the potential to thrive if they diversify into areas such as financial services, public service delivery and white labelling. In the coming weeks the group will explore these business areas further.

An Post remains a trusted brand the length and breadth of the country, with 1,140 active company and contractor-operated post offices and 128 postal agents. Approximately 65% of post offices are located in rural areas where they provide important services for local communities. Despite the challenges faced by post offices, the number of closures has fallen dramatically during the lifetime of the Government. There were 24 net closures between 2011 and 2014 compared with 198 between 2007 and 2010. I encourage everyone interested in maintaining the relevance of the post office network to communities to take the opportunity to respond with their views and suggestions during the consultation period which opened today and which will run until 28 July. The initial report and the consultation questions are available on my Department's website. This is a real chance to have an input into the workings of the business development group and represents the best opportunity to place the post office network on a sustainable footing for the future. I look forward to receiving the final report of the group which I expect to receive later this year.

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