Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

An Post is a very highly-respected company in Ireland. The postmasters have been there for several hundred years and have gained real trust among people. Trust is a not an insignificant aspect of any business and it is vital in terms of dealing with people's money, social welfare payments and savings. An Post deals with over 1 million transactions every day and has the skills and competences to do that efficiently and quickly. However, this company is in real crisis. The scale of that crisis should not be underestimated by anyone in this House. Last year we discovered the figures showing the downturn in core business mail, which is two thirds of the company's business. Instead of the expected 3.5% decrease in volumes in a year, those figures showed that the reduction was almost double that, at 6.7%. That is why we are considering this Bill and why there is real concern for the future of the company and for its people working in urban and rural post offices and in every aspect of the network.

I have a real concern that the provision for increases in the cost of a basic stamp could precipitate that crisis into a really fast downturn. I know why it is being done and there are no easy options but consultancy reports suggest large mail volume users such as banks and telecommunications companies, who are among the last big users of this service, will flip very quickly and the company will not only lose the Irish Water charges mail. I understand the company has already lost one of the big banks - perhaps the Minister might confirm this. When the price rises go through then, perhaps within a matter of months, rather than yielding an increase in revenue to give the company the room to get into an alternative business model we may see a further precipitous fall in volumes and revenues and this will not create the conditions to allow for the restructuring of the company that everyone agrees has to take place. This is my primary concern with regard to this legislation.

Whether I am wrong or right, there is only perhaps one year for the company to completely reconfigure its business and to start developing other revenue streams to cope with the ongoing downturn in mail revenues, which is almost certain regardless of whether or not we increase the price as expected.

I will reflect on from where a couple of new businesses might come or the circumstances in which a new model of engagement might happen. The first, as many previous speakers have suggested, is in the area of financial transactions and banking, which the company is already developing. We have to be careful about that. I remember, from bitter experience, having to be part of the management of the closure of Fortis Bank, the previous incarnation of development banking activities. I asked the people involved what their core business was, where the revenue was and how profit was going to be made and a glint came into the eye of the executives - good people - as they suggested mortgages would be where they could make a handsome profit. It was part of the culture of the time and the world and his wife were thinking they would make money out of mortgages. That was a huge mistake. I do not think we will turn An Post into a mainstream big commercial or mortgage bank. I do not think it will have the expertise in that regard and while we might try to develop the expertise in other areas, I do not believe it will be in An Post. It should be possible for An Post, in conjunction with credit unions and other institutions, to develop the new-style banking system, which is developing around the world, which uses mobile apps to put everything online, such as cash and payment services as well as microlending services. This will serve smaller-scale domestic businesses and will provide very small SME lending without big risks and with different expertise. There is a need to do something significant in public banking for SME lending at levels around €30,000 or €50,000 and we will be publishing legislation in this regard. One has to lend to make a profit in banking but with large volumes, small margins and highly-automated low-cost payment systems, the post office network can move into that space.

Second, Mr. Bobby Kerr's report goes through some of this, but there must be a facility for the development of An Post's parcel network, which could also evolve into a transport network. In rural post offices where vans deliver parcels, is it not possible to integrate that system into a rural transport system? It may be unorthodox, but it could still provide connectivity, savings and an increased revenue stream by delivering parcels and helping to carry people at the same time. It could also be seen as an exporting capability, particularly from smaller rural areas where small businesses need that level of connectivity to reach customers.

Third, and perhaps most importantly, is the core communications business. An Post defines its mission as a communications business; therefore, the company should be moving into digital communication services provided locally through this network. Public trust in the brand can be used to become innovative in order that An Post could become a leading public company in providing a whole range of digital services.

When I look at what I pay daily for various communications systems, it may not be usual because Deputies must have a range of different services. I am paying for Dropbox, LinkedIn, Google and a raft of media companies for a range of services. I am paying for telephone and broadband also. Some of it is bundled but one has to pay for that stuff now. I want to store all my material online, including photographs and family videos. As I want that material to be there for the children and grandchildren, I am paying all these American companies, even though each one is a small payment. I am paying Google because I breached my 15gb limit of free data, but I am paying €2 or €3 per week for it.

All those services are being provided by international companies, but why can we not look at a State company to provide them? We know that such a State company will be here in 50 or 100 years time. It might give us some security for the nature of our data, so we do not have Facebook or others changing the rules every few years to suit their purposes. Instead we might have a company that we could trust. We would know they are not just out to use one's data for advertising, but to provide a safe and secure place to store data, which could operate online and does not necessarily require a physical network.

It would work well with an outlet to provide that sort of contact point for a range of different digital services that might be provided by such a company which is used to dealing with large transactions. It has our trust, unlike some of those social media and other international companies. I think there is a future in that. It would require a leap of imagination, a change of management and a change in how workers see the nature of the company.

We have no choice about this, however. If we just stick to business as usual, those workers will face an even bleaker future; therefore, it has to change. We could examine many other services also, but An Post should be the centre point for the State's provision of services - not just motor tax renewal, but every aspect in terms of a contact point for the State, including agricultural forums and questions on every service the State provides. It should be a State information office to provide an increased level of transactions which we need to make the system work.

Whatever happens to the Bill and the price cap, my fear is that it could precipitate a real crisis in terms of a drop in volumes and revenue. I am minded not to support the Bill because of that fear, but I will support the Minister, whichever one it is. We have a real problem in that we do not know which Minister is really responsible. It is mad the way in which the responsibilities of this company have been divided. Whoever takes the reins will have a tough time, but this House needs to work collectively to help the Minister and the company to take a completely different direction. That company is hugely important for the future of the country.

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