Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

I welcome the opportunity to speak in this debate. The main purpose of the Bill is to repeal the price cap mechanism currently in place for universal postal services which in turn will give An Post increased flexibility in its pricing.

There is no doubt that the post office network is facing huge challenges. One of these challenges is the fact that An Post is losing money and in the past seven years has incurred losses of €340 million. These losses are unsustainable and action needs to be taken to ensure the postal service has a viable and sustainable future.

In its assessment of the company, ComReg has established that An Post did not meet its efficiency targets of 2% per annum. Also, it did not price to the maximum allowed under the existing price cap. In addition, ComReg stated An Post was unlikely to break even on the services it provided that were subject to the price cap. With this in mind it is important that measures are now taken to ensure the postal network is protected and legislation is put in place to underpin its future.

Post Offices are an integral part of Irish society and must be fully protected in order that their future can be secured. I am mindful of the fact that An Post is operating at a financial loss and this must be addressed.

I read the Grant Thornton report which was published in 2012. It identified three main revenue streams for An Post - traditional mail services, Government contracts and financial services. It also identified potential future services that An Post could provide, including motor taxation, an extension of the banking services currently available, household charges, local authority charges and hospital charges.

It is interesting to note that the report also highlighted what were identified as future opportunities for An Post, including a restructuring of local government, additional Government charges, an ability to extend business in terms of capability and infrastructure, increased community interaction and technology related solutions including tracking, digital displays and phone applications.

Banks are facing cost pressures and seeking alternative solutions, while An Post has the required capacity to expand. Whilst highlighting the challenges faced by An Post, the Grant Thornton report also emphasised that An Post has a viable future.

Another report I want to highlight is the Kerr report which was published in January 2016. That report came about as a result of the establishment of the Post Office Network Business Development Group in January 2015 with a mandate to produce a report that would explore potential commercial opportunities available to the postal network. The report was developed following an extensive consultation process where the group engaged with a variety of stakeholders including those in the public sector, commercial bodies, post office customers and other interested parties. The report identified the principal activities that currently underpin the postal network including processing social welfare payments, processing State savings products, bill-pay transactions for electricity, gas, telephone and waste, licence collections on behalf of public bodies, money transmission services, agency banking transactions on behalf of retail banks, foreign exchange services, postal services and gift vouchers. The report clearly recognised the value and importance of the post office network as a key piece of rural infrastructure that could revitalise rural communities. I strongly agree with that view. As I stated, the post office network is an integral part of Irish society. It must be protected and made sustainable.

With regard to safeguarding the future of An Post, the Kerr report identified 23 recommendations that it considers would be central to the future sustainability of the network. In my constituency of Louth and in Meath East there are many rural areas that depend heavily on their local post offices, including Ardee, Louth village, Dunleer and Carlingford, to name just a few.

The Kerr report clearly identified that the network needs to be renewed and modernised. It also recommended that the Government and An Post agree a business model to facilitate the introduction by An Post of payment accounts for social welfare clients.

These payment accounts could also facilitate the use of a dedicated debit card, full access to ATM facilities and the use of standing orders and direct debit facilities. The report also identified that the payment of motor tax through the An Post network should be considered. One of the recommendations that must be looked at very closely is the proposal that An Post develop a formal structure with the credit union movement either through a representative organisation or interested unions to establish the potential scope for a link-up.

Another interesting aspect of the Kerr report was that it suggested we put a monetary value on the social aspect of the post office network. This is something about which I feel very strongly. We should put a monetary value on the social aspect of the postal network. The report also highlighted that there may be opportunities for An Post to provide additional services to the small and medium enterprise, SME, sector and this again is something that we must investigate further.

At this stage, it is important to state that the programme for Government also provided for commitments regarding post offices. The programme for Government committed to acting on the recommendations of the Kerr report and this I welcome. I am also pleased that the Minister of State, Deputy Michael Ring, has established a working group to examine and identify potential models for how post offices could act as community hubs, particularly in rural areas. As I said, we must protect the post office network. The establishment of these working groups will go a long way to providing a way forward for the network provided the recommendations are acted on.

I record for the House my complete support for the retention of the postal network. The postal network is part of society and too many depend on it. We must not diminish the role of the post office but must continue to support fully the concept of the postal network and develop a strategy that will modernise and safeguard the future of An Post. Rural areas, in particular, must be reassured that there is a future for their post offices and that we in the Fine Gael Party will do everything in our power to ensure there is a bright future for the postal network.

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