Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I propose to take Questions Nos. 11 and 12 together. I thank both Deputies for tabling the questions.

As Minister for Communications, Climate Action and Environment, I have responsibility for the postal sector, including the governance of An Post, to ensure the company is fully compliant with the code of practice for the governance of State bodies and the governance functions included in the statutory framework underpinning An Post.

Operational matters and the role of developing commercial strategies for the post office network are a matter for the board and the management of An Post and not one in which I, as Minister, have a statutory function.

It is Government policy that An Post remains a strong, viable company and in a position to provide a high quality, nationwide postal service and that it maintains a nationwide customer-focused network of post offices in the community. However, the postal sector as a whole is undergoing systemic change as a result of the growth of the digital economy. The continuing decline in mail volumes, combined with the ongoing impact of e-substitution on retail businesses transacted through the post office network, is a significant challenge for the company and has an impact on its financial well-being.

In recognition of the changing commercial environment within which An Post operates, my predecessor established the Post Office Network Business Development Group last year, the remit of which was to examine the potential from existing and new Government and commercial business that could be transacted through the post office network. The final report of the Post Office Network Business Development Group, which was published in January this year, represents an important step towards greater financial sustainability for the post office and the wider network. On foot of the reconfiguration of Government Departments earlier this year, responsibility for the post office network transferred to the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs. In my role regarding the corporate governance of An Post, I have impressed upon the company the vital importance of giving its full support and assistance to the Minister, Deputy Humphreys, as work is progressed on bringing about new opportunities for the nationwide network of post offices.

Managing the scale of the challenge facing An Post will require a focus on innovation and new business models by the company as well as the development of new commercial strategies. In so far as the commercial and operational activities of the company are concerned, the board and management of the company are constantly working to ensure that the services the company provides are developed and delivered to meet the needs of its customers. As a shareholder, however, I have a strong interest in the commercial and financial position of the company and I regularly liaise with the company in this regard. The future sustainability of An Post and its relevance to consumers is recognised as an important priority for all involved.

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