Joe McHugh (Donegal North East, Fine Gael) | Oireachtas source

I thank the Deputy for his question. The post office network plays an important role in serving the needs of business and domestic customers alike. However, the postal sector is undergoing systemic change, with migration towards electronic communications resulting in significant core mail volume decline year-on-year. It remains Government policy that An Post remain a strong and viable company.

In recognition of the changing commercial environment the Minister established the Post Office Network Business Development Group, of which I a member, earlier this year. The group's remit is to examine the potential from existing and new Government and commercial business that could be transacted through the post office network. The group presented its initial report to the Minister in May 2015 and outlined, in summary, that the future of the post office network would be best secured by seeking out opportunities in the following areas: financial services, including basic banking for the unbanked, Government services, social capital and enterprise, and white labelling of financial and other products.

To gain further insight into these areas, a public consultation exercise was held from 16 June to 28 July. Interested parties were invited to submit their views on the initial report. A total of 16 responses were received, and a summary of these responses together with the initial report is published on the Department's website. It is clear from the responses received that there is a strong public desire to maintain the nationwide network of post offices. While An Post remains a trusted brand, with 1,132 active company- and contractor-operated post offices as well as 125 postal agencies, it needs to further diversify into areas such as financial services and continue to develop attractive products and services that customers want and need. The consultation responses will assist the group in identifying opportunities that can benefit the post office network and will inform the final report, which I expect to be submitted to the Minister later in the autumn.

See this speech in context