Michael Ring (Mayo, Fine Gael) | Oireachtas source

I welcome the opportunity to address the House on the important issue of the post office network. I acknowledge the important role the post office plays in serving the needs of business and domestic customers alike. In particular, the Government recognises the importance of the local post office in rural Ireland. However, it is important to recognise that the postal sector is undergoing major change both nationally and internationally, with the increased use of electronic communications leading to a decline in core mail volumes year on year. Not only does this have a significant impact on the profitability of An Post, but it also affects the post office network negatively.

It is important to clarify that the post office network is not owned by the State. There are 1,131 post offices nationwide, 51 of which are operated directly by An Post, which is a commercial State body, with the rest being run under contract to An Post by postmasters and postmistresses. Nevertheless, as indicated in a programme for a partnership Government, the Government is, and will remain, committed to working with all stakeholders to find solutions to ensure the sustainability of the post office network into the future. The Government would ideally like to see the maintenance of a national network of customer-focused post offices in the community. To that end, the Post Office Business Development Group, chaired by Mr. Bobby Kerr, was established in 2014 to examine the potential for new and existing Government and commercial business that could be transacted through the post office network and to identify new business opportunities for the network. This process came about following the loss of 198 post offices over the term of office of the previous Government. The final report of the group, which was published in January of this year, made a number of recommendations to support the future sustainability of the post office network, including network renewal.

On foot of this report, the post office network renewal implementation group was established to progress the recommendations arising from the final report of the business development group, the Kerr report. The implementation group is an independent group chaired by Mr. Kerr and includes representatives of An Post and the Irish Postmasters Union. The group has been examining issues such as the number and spatial distribution of post offices, branch modernisation, the streamlining of products and services, postmaster payments and contracts, and training and qualifications for post office employees. Some of the issues under consideration are quite complex in nature. Both I and the Minister, Deputy Humphreys, have met with Mr. Kerr and members of the implementation group on a number of occasions over the past few months. I understand that the implementation group is nearing the conclusion of its work and that recommendations will issue to the board and management of An Post in the next few weeks. It will be a matter for An Post to consider these recommendations and to bring their proposals to the appropriate Government Ministers for discussion.

Given my brief, and being a rural Deputy, I am fully aware of the importance of the local post office to rural communities. I firmly believe that post offices could, and should, play an important role in rural renewal, fostering community engagement and generating economic activity that supports the revitalisation of rural Ireland. To explore this concept further, I established the post office hub working group to identify potential models under which post offices could act as community hubs, especially in rural areas. I have chaired a number of successful meetings of this group over the last number of months, and we have now identified three potential options around the hub concept.

The first option is co-operative post offices which would provide communities with opportunities to run their local offices as community co-operatives. The second option is shared value post offices which would see local post offices act as multi-purpose spaces for communities, an approach that has proven successful in other jurisdictions. Thirdly, mobile post offices operating in some areas of rural Ireland would ensure the continuity of this important service for communities where it may not be economically feasible to operate a full-time office.

My officials are finalising a report from the post office hub working group with a view to potentially establishing a number of pilot projects in 2017. My officials are also working with the Department of Housing, Planning, Community and Local Government to examine the potential for motor tax renewal services to be offered through the post office network. Three options for this service have been identified to date and it is expected that, following a short consultation exercise with stakeholders, these options will be brought forward for consideration.

My officials have also been examining the potential-----

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